Promoters in State may Surrender Licenses if unable to Develop Colonies, says Punjab Govt
Img : hindustantimes

On Wednesday the Punjab Cabinet sanctioned a policy that allows promoters to surrender their licenses if they are unable to develop colonies. The meeting of cabinet minister under the chairmanship of Chief Minister Amarinder Singh approved to necessitate the policy while understanding the difficulties faced by the promoters an official said.

The licenses issued under the Punjab Apartment and Property Regulation Act, 1995, subject to certain conditions to the promoters can be surrendered to the State Government. The license is issued to promoters for developing colonies under Section 5 of the Punjab Apartment and Property Regulation Act, 1995.

An official said, “If a promoter fails to comply with the conditions of the license issued to him, the license may be cancelled under provision 5 (12) of the Punjab Apartment and Property Regulation Act, 1995.”

The official further 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.”

In order to examine the matter, a committee was formed 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.

In the meeting, committee came to a conclusion that many promoters were willing to surrender licenses issued to them in respect of their colonies.

Sharing details of the policy, the official said, that the surrendering of license 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 further 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. 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”.

The developer has to demolish the construction raised in the licensed colony and has to restore the land in its original form.

According to the spokesperson, the promoter has to publish, a 30-day public notice, inviting objections from the public in two national daily newspapers having wider circulation in the locality before surrendering the license of the colony.

The authority can take appropriate action if any objection is received after publication. The decision will be taken after hearing concerned parties.

According to the official, the charges deposited by the promoter on account of 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.

Before issuance of approval for surrender of license, 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/license 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.