You are here: Home » Economy & Policy » News
Business Standard

Promoters may surrender licences if unable to develop colonies: Punjab govt

The Cabinet met in Chandigarh under the chairmanship of CM Amarinder Singh and decided to necessitate the policy in view of the difficulties faced by the promoters

Topics
Punjab Government  |  Amarinder Singh

Press Trust of India  |  Chandigarh 

Punjab Chief Minister Capt Amrinder Singh. File Photo
Punjab Chief Minister Capt Amrinder Singh. File Photo

The Punjab Cabinet on Wednesday approved a policy to allow promoters to surrender their licences if they are unable to develop colonies.

The Cabinet met in Chandigarh under the chairmanship of Chief Minister and decided to necessitate the policy in view of the difficulties faced by the promoters, an official spokesperson said.

The official added that the promoters will now be able to surrender the licences issued to them under the Punjab Apartment and Property Regulation Act, 1995, subject to certain conditions.

Section 5 of the Punjab Apartment and Property Regulation Act, 1995, provides for the issuance of licences to promoters for developing colonies.

If a promoter fails to comply with the conditions of the licence issued to him, the licence may be cancelled under provision 5 (12) of the Punjab Apartment and Property Regulation Act, 1995," he said.

However, due to slump in the real estate sector, some promoters were unable to develop colonies or complete the development works in the colonies, and they wanted to surrender their licenses but could not do so, in the absence of any provision or policy, he added.

A committee was constituted under the chairmanship of Additional Chief Administrator (F&A), Punjab Urban Development Authority, with Engineer-in-Chief Town Planner, Punjab, Senior Town Planner, Greater Mohali Area Development Authority, Legal Advisor, PUDA and Estate Officer (Policy) as members, to examine the matter, the official said.

Meetings were held by the committee members who came to the conclusion that many promoters were willing to surrender licences issued to them in respect of their colonies, the spokesperson further said.

Giving details of the new policy, the spokesperson said that the surrendering of licence would be allowed in cases where the promoter had not sold/allotted/leased out any plot/apartment and not undertaken any development works at the site of the colony, he said.

The promoters will submit an affidavit attested by an Executive Magistrate assuring that no sale deed/allotment/lease deed for any plot/apartment/villa/house has been executed in the said colony, he said.

Otherwise, the promoter will obtain irrevocable consent from the allottees/plot holders/apartment owners in the form of an affidavit attested by an Executive Magistrate regarding no claim on the property, he added.

However, if any construction has been raised in the licenced colony, the same has to be demolished by the promoter first, restoring the land to its original form, he said.

The spokesperson said that before surrendering the licence of the colony, a 30-day public notice, inviting objections from the public, will have to be published by the promoter in two national daily newspapers having wider circulation in the locality, he added.

If any objection is received after publication, the authority will take an appropriate decision after hearing the parties concerned, he said.

The charges deposited by the promoter on account of Change of Land Use, licence fee etc, will not be refunded. The promoter will be solely responsible for any legal claims/liabilities in case he/she has availed any bank loan etc. on the basis of licence, the official said.

Before issuance of approval for surrender of licence, the promoter will submit an affidavit, duly attested by an Executive Magistrate, declaring therein that he/she will not sell any plot sub-dividing the land under the colony without obtaining requisite approval/licence from the competent authority, failing which legal action will be initiated under the appropriate provisions of the Punjab Apartment and Property Regulation Act, 1995, the official said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 17 2018. 14:10 IST
RECOMMENDED FOR YOU
.