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 Amarinder Singh 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.