Punjab Promoters May Surrender Licence If They Are Unable To Build Colonies
The Punjab Cabinet on October 17 approved a policy to allow developers to surrender their licences if they are unable to develop government-approved colonies. The Cabinet decided to necessitate the policy in view of the difficulties faced by the promoters amid a slowdown that has triggered an extreme liquidity crunch. 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 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, it may be cancelled under provision 5 (12) of the Act. However, promoters who wanted to surrender their licences could not do so in the absence of any provision or policy. To address the issue, a committee was earlier constituted to examine the matter.
There are some conditions developers have to fulfill before applying for licence surrender.
No sale, no leasing: Only promoters who have not sold/allotted/leased out any plot/apartment and not undertaken any development works at the site of the colony will be allowed to surrender their licences. They will have to submit an affidavit, declaring the same. Otherwise, the promoter will have to obtain an irrevocable consent from the allottees in the form of an affidavit that they are foregoing their claim on the property.
Construction demolition: If there is any kind of construction in the licenced colony, the owner will have to demolish it first, restoring the land to its original form.
Notice in newspapers: 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. If any objection is received after publication, the authority will take an appropriate decision after hearing the parties concerned.
No refunds of some charges: The charges deposited by the promoter on account of the change of land use, license 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 license, the official said.
No sub-division allowed: Before the licence could be surrendered, the promoter will have to submit a duly attested affidavit, declaring that they will not sell any plot sub-dividing the land under the colony without obtaining requisite approval. Any failure in this regard would end in the initiation of legal action.
With inputs from Housing News