Chhattisgarh Real Estate (Regulation and Development) Rules, 2017

Chhattisgarh Real Estate (Regulation and Development) Rules, 2017

Naya Raipur, the 26th April 2017
Notification

No. F 8-4112016132.– In exercise of the powers conferred by Section 84 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), State Government, hereby, makes the following rules for regulation and development of real estate in the State of Chhattisgarh, namely :-

Rules

Chapter-I Preliminary

l. Short title, extent and commencement.- (l) These rules may” be called the Chhattisgarh Real Estate (Regulation and Development) Rules, 2017.

(2) These rules shall extend to the Whole State of Chhattisgarh.

(3) These rules shall come into force from the date of its publication in the Official Gazette.

2. Definitions.- (1) In these rules, unless the context otherwise requires, –

(a) “Act” means the Real Estate (Regulation and Development) Act, 2016 (16 of 2016);

(b) “Annexure” means annexure appended to these rules;

(c) “Appropriate Government” means the Government of Chhattisgarh;

(d) “Authenticated Copy” shall mean a self-attested copy of any document required to be provided by any person under these rules;

(e) “Form” means form appended to these rules;

(f) “Layout Plan” means a plan of the project depicting the division or proposed division of land into plots, roads, open spaces, amenities, etc. and other details, as may be necessary;

(g) “ongoing Project” means a project where development is going on and for which completion certificate has not been issued but excludes such projects which fulfill any of the following criteria on the date of notification of these rules,-

(i) where services have been handed over to the Local Authority for maintenance ;

(ii) where common area and facilities have been handed over to the Association or the Residents’ welfare Association /Society for maintenance ;

(iii) where all development work have been completed and sale/lease deeds of sixty percent of the apartments/houses/plots have been executed; or

(iv) where all development works have been completed and application has been filed with the competent Authority for issue of completion certificate’

(h) “Project Land” means any parcel of land on’ which the project is developed and constructed by , promoter;

(i) “Section” means section of the Act.

(2) Words and expressions used herein and not defined, but defined in the Act, shall have the same meaning as respectively assigned to them in the Act.

Chapter-II Real Estate Project

3. Information and documents to be furnished by the promoter for registration of project. – (1) The promoter shall furnish the following additional information and documents, along with those specified under the relevant sections of the Act, for registration of the real estate project with the Real Estate Regulatory Authority, namely:-

(a) authenticated copy of the PAN card of the promoter;

(b) audited balance sheet of the promoter for the preceding financial year and income tax returns of the promoter for three preceding financial years;

(c) the number of open parking areas available in the said real estate project;

(d) copy of the legal title deed reflecting the title of the promoter to the land on which development is proposed to be developed along with legally valid documents with authentication of such title, if such land is owned by another person;

(e) the details of encumbrances on the land on which development is proposed including any rights, title, interest or name of any party in or over such land along with detail;

(f) where the promoter is not the owner of the land on which development is proposed, details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land proposed to be developed;

(g) such other information and documents, as may be specified by the regulations.

(2) The application referred to in sub-section (1) of Section 4 shall -be made in Form-A, in triplicate, until the application procedure is made web based as provided under sub-section (3) of Section 4 of the Act.

(3) The promoter shall pay a registration fee at the time of application for registration by way of a demand draft/bankers cheque drawn in a Scheduled Bank or through online payment mode, as the case may be, for a sum calculated at the rate of,-

(a) in case of group housing project,- five rupees per square meter for projects, where the area of land proposed to be developed does not exceed on thousand square meters; or rupees ten per square meter for the project, where the area of the land proposed to be developed exceeds one thousand square meters, but shall not be more than five lakhs rupees;

(b) in case of mixed development (residential and commercial) project,- ten rupees per square meter for project where the area of the land proposed to be developed does not exceed one thousand square meters; or fifteen rupees per square meter for project where the area of land proposed to be developed exceeds one thousand square meters, but shall not be more than seven lakhs rupees;

(c) in case of commercial project,- twenty rupees per square meter for projects where the area of land proposed to be developed does not exceed one thousand square meters; or twenty five rupees per square meter of project where the area of land proposed to be developed exceed one thousand square meters, but shall not be more than ten lakh rupees;

(d) in case of plotted development projects,- five rupees per square meter, but shall not be more than two lakhs rupees.

(4) The declaration to be submitted under clause (1) of sub-section (21 of Section 4 of the Act shall be in Form-B, including a declaration that the promoter shall not discriminate against any allottee at the time of allotment of any apartment, plot or building, as the case may be.

(5) In case the promoter applies for withdrawal of application for registration of the project before the expiry of the period of 30 days provided under sub-section (1) of Section 5, registration fee to the extent of ten percent paid under sub-rule (3) above, or rupees fifty thousand, whichever is more, shall be retained as processing fee by the Real Estate Regulatory Authority and the remaining amount shall be refunded to the promoter within thirty days from the date of such withdrawal.

4. Disclosure by promoters of existing projects.- (1) Upon the notification for commencement of sub-section (1) of Section 3, promoters of all ongoing projects, which have not received completion certificate shall, within the time specified in the said sub-section, make an application to the Real Estate Regulatory Authority in the form and manner provided in sub-section (1) of Section 4.

(2) The promoter shall disclose all project details as required under the Act and the rules and regulations made there under, including the status of the project and the extent of completion.

(3) The promoter shall disclose the size of the apartment based on carpet area even if earlier sold on any other basis such as super area, super built up area, etc., which shall not affect the validity of the agreement entered into between the promoter and the allottee to that extent.

(4) In case of plotted development the promoter shall disclose the area of the plot being sold to the allottees.

5. Withdrawal of sums deposited in separate account.- (1) For the purposes of sub-clause (D) of clause (1) of sub-section (2) of Section 4, the land cost shall be the cost incurred by the promoter, whether as an outright purchase, lease charges, etc.

(2) For the purposes of sub-clause (D) of clause (1) of sub-section (2) of Section 4, the construction cost shall be the cost incurred by the promoter, towards the on-site expenditure for the physical development of the project.

6. Grant or rejection for registration of the project.– (1) Upon the registration of a project as per Section 5 read with rule 3, the Real Estate Regulatory Authority shall issue a registration certificate with a registration number in Form-C to the promoter.

(2) In case of rejection of the application as per Section 5, the Real Estate Regulatory Authority shall inform the applicant in Form-D.

7. Extension of registration of the project.- (1) The registration granted under the Act, may be extended by the Authority, on an application made by the promoter in Form-E, in triplicate, until the application procedure is made web based, within three months prior to the expiry of the registration granted.

(2) The application for extension of registration shall be a accompanied with a demand draft or a bankers cheque drawn on any scheduled Bank or through online payment mode, as the case may be, for an amount equivalent to half the registration fee as prescribed under sub-rule (3) of rule 3 alongwith an explanatory note setting out the reasons for delay in completion of the project and the need for extension of registration for the project, alongwith documents supporting such reasons:

Provided that where the promoter applies for extension of registration of the project due to force majeure he shall not be liable to pay any fee.

(3) The Extension of registration of the project shal1 not be beyond the period Provided as Per local laws for completion of the project or Phase thereof, as the case may be.

(4) In  case of extension of registration, the Authority shall inform the promoter about such extension in Form-F and in case of rejection of the application for extension of registration the Authority shal1 inform the promoter about such rejection in Form-D:

Provided that the Authority may grant an opportunity to the promoter to rectify the defects in application within such time period as may be specified by it.

8. Revocation of Registration of the project.- Upon the revocation of registration of a project as per Section 7 of the Act, the Real Estate Regulatory Authority shall inform the promoter about such revocation in Form-D.

9. Agreement for sale.- (1) For the purpose of sub-section (2) of Section 13 of the Act, the agreement for sale shall be in the form as per Annexure-A.

(2) Any application letter, allotment letter or any other document signed by the allottee, in respect of the apartment, plot or building, prior to the execution and registration of the agreement for sale for such apartment, plot or building, as the case may be, shall not be construed to limit the rights and interests of the allottee under the agreement for sale or under the Act or the rules or the regulations made thereunder.

Chapter-III Real Estate Agent

10. Application for Registration by the real estate agent.- (1) Every real estate agent required to register as per sub-section (2) of Section 9 of the Act shall make an application in writing to the Real Estate Regulatory Authority in Form-G along with the following documents, namely: –

(a) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, etc.) ;

(b) particulars of registration including the bye-laws, memorandum of association, articles of association, etc. as the case may be;

(c) photograph of the real estate agent, if it is an individual and the photograph of the partners, directors, etc. in case of other entities;

(d) authenticated copy of the PAN card;

(e) income tax returns filed under the provisions of the Income Tax Act, 1961 (No. 43 of 196l) for three financial years preceding the application or in case the applicant was exempted from filing returns under the provisions of the Income Tax Act , 1961 (No. 43 of 1961) for any of the three year preceding the application, a declaration to such effect;

(f) authenticated copy of the address proof of the place of business; and

(g) such other information and documents, as may be specified by regulations.

(2) The real estate agent shall pay a registration fee at the time of application for registration by way of a demand draft or a bankers cheque drawn on any scheduled bank or through online payment, as the case may be, for a sum of ten thousand rupees in case of the applicant being an individual; or fifty thousand rupees in case of the applicant other than an individual.

11. Grant of Registration to the real estate agent.- (1) Upon the registration of a real estate agent as per Section 9 read with Rule 10, the Real Estate Regulatory Authority shall issue a registration certificate with a registration number in Form- H to the real estate agent.

(2) In case of rejection of the application as per Section 9, the Real Estate Regulatory Authority shall inform the applicant in Form-I.

(3) The registration granted under this rule shall be valid for a period of five years.

12. Renewal of registration of real-estate agent.- (1) The registration granted under Section 9, may be renewed as per registration Section 6, on an application made by the real estate agent in Form-J which shall not be less than three months prior to the expiry of the registration granted.

(2) The application for renewal of registration shall be accompanied with a demand draft or a bankers cheque drawn on any scheduled bank or through online payment, as the case may be, for a sum of five thousand rupees in case of the real estate agent being an individual or twenty five thousand rupees in case of the real estate agent other than an individual.

(3) The real estate agent shall also submit all the updated documents set out in clauses (a) to (f) of rule 10 at the time of application for renewal.

(4) In case of renewal for registration, the Real Estate Regulatory Authority shall inform the real estate agent about the same as per Form-K and in case of rejection of the application for renewal of registration the regulatory, shall inform the real estate agent as per Form-I:

Provided that no application for renewal of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

(5) The renewal of registration of the real estate agent shall be granted:

Provided that the real estate agent complies with the provisions of the Act and the rules and regulations made thereunder.

(6) The renewal granted under this rule shall be valid for a period of five years.

13. Revocation of Registration of real estate agent.- The Real Estate Regulatory Authority may, due to reasons specified under sub-section (7) of Section 9 of the Act, revoke the registration granted to the real estate agent or renewal thereof, as the case may be, and intimate the real estate agent of such revocation in Form-I.

14. Maintenance and preservation of books of accounts, records and documents.- The real estate agent shall maintain and preserve books of account, records and documents in accordance with the provisions of the Income Tax Act, 1961 (No. 43 of 1961).

15. Other functions of a real estate agent.– The real estate agent shall provide assistance to enable the allottee and promoter to exercise their respective rights and fulfill their respective obligations at the time of booking and sale of any plot, apartment or building, as the case may be.

Chapter-IV Details to be Published on the Website of the Authority

16. Details to be published on the website.- (1) For the purposes of clause (b) of Section 34, the Real Estate Regulatory Authority shall ensure that the following information shall be made available on its website in respect of each project registered, namely:-

(a) Details of the promoter including the following:

(i) Developer or Group Profile:

(A) a brief detail of his enterprise including its name, registered address, type of enterprise (proprietorship, limited liability partnership, society, partnership, company, Competent Authority) and the particulars of registration. In case of a newly incorporated or registered entity, brief details of parent entity including its name, registered address, type of enterprise (proprietorship, societies, limited liability partnership, partnership, companies, Competent Authority);

(B) background of promoter– educational qualification, work experience and in case of a newly incorporated or registered entity work experience of the parent entity.

(ii) Track record of the promoter:

(A) number of years of experience of the promoter or parent entity in real estate construction in the state/union territory;

(B) number of years of experience of the promoter or parent entity in real estate construction in other states or union territories;

(C) number of completed projects and area constructed till date;

(D) number of ongoing projects and proposed area to be constructed;

(E) details and profile or ongoing and completed projects for the last 5 years as provided under clause (b) of sub-section (2) of Section 4 of the Act.

(iii) Litigations: Details of past or ongoing litigations in relation to the real estate project.

(iv) Website:

(A) web link to the developer or group website;

(B) web link to the project website.

(b) Details of the real estate project including the following:

(i) Compliance and registration:

(A) authenticated copy of the approvals and commencement certificate from the Competent Authority as provided under clause (c) of sub-section (2) of Section 4;

(B) the sanctioned plan, layout plan and specifications of the project or the phase thereof, and the whole project as sanctioned by the Competent Authority as provided under clause (d) of sub-section (2) of Section 4;

(C) details of the registration granted by the Authority.

(ii) Apartment and garage related details:

(A) details of the number, type and carpet area of apartments for sale in the project as provided in clause (h) of sub-section (2) of Section 4;

(B) details of the number and areas of garage for sale in the project as provided under clause (i) of sub-section (2) of Section 4;

(C) details of the number of open parking areas available in the real estate project.

(iii) Registered Agents: Names and addresses of real estate agents as provided under clause (j) of sub-section (2) of Section 4.

(iv) Consultants: Details, including name and addresses, of contractors, architect and structural engineers and other persons concerned with the development of the real estate project as provided under clause (k) of sub-section (2) of Section 4, such as:-

(A) Name and address of the firm

(B) Names of promoters

(C) Year of establishment

(D) Names and profile of key projects completed.

(v) Location: the location details of the project, with clear demarcation of land dedicated for the project along with the boundaries including the latitude and longitude of the end points of the project as provided under clause (f) of sub-section (2) of Section 4.

(vi) Development Plan:

(A) The plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy etc. as provided under clause (e) of sub-section (2) of section 4;

(B) Amenities: a detailed note explaining salient features of the proposed project including access to the project, design for electric supply including street lighting, water supply arrangements and site for disposal and treatment of storm and sullage water, any other facilities and amenities or public health services proposed to be provided in the project;

(c) Gantt Charts and Project schedule: the plan of development works to be executed in the project and the details of the proposed facilities to be provided thereof. 

(c) Financials of the promoter:

(i) authenticated copy of the PAN card of the promoter ;

(ii) audited balance sheet of the promoter for the preceding financial year and income tax returns of the promoter for three preceding financial years and in case of a newly incorporated or registered entity annual returns of the last 3 financial years of the parent entity.

(d) The promoter shall upload the following updates on the webpaqe for the project, with seven days from the expiry of each quarter:

(i) List of number and types of apartment or plots, as the case may be booked:

(ii) List of number of garages book:

(iii) Status of the project:

(A) Status of construction of each building with photographs;

(B) Status of construction of each floor with photographs;

(C) Status of construction of internal infrastructure and common areas with Photographs.

(iv) Status of approvals:

(A) Approval received;

(B) Approvals applied and expected date of receipt;

(c) Approvals to be applied and date planned for application;

(D) Modifications, amendment or revisions, if any, issued by the competent Authority with regard to any license, Permit or for the Project.

(e) Downloads:

(i) (A) No objection certificates

(1) Consent to Establish and Operate;

(2) Environment Clearance;

(3) Fire NOC;

(4) Permission from water and Sewerage department;

(5) Height clearance from Airport Authority of India;

(6) Such other approval as may be required and obtained for the Project.

(B) Authenticated copy of the license or land use permission, building sanction plan and the commencement certificate from the Competent Authority obtained in accordance with the laws applicable for the project, and where the project is proposed to be developed in phase, an authenticated copy of the license or land. use permission, building sanction plan and the commencement certificate for each of such phase;

(c) Authenticated copy of the site plan or site map showing the location of the project land along with names of revenue estates, Survey numbers, cadastral numbers, khasra numbers and area of each parcels of the project land;

(D) Authenticated copy of the layout plan of the project or the phase thereof, and also the layout plan of the whole project as sanctioned by the Competent Authority;

(E) Floor plans for each tower and block including clubhouse, amenities and common areas;

(F) Any other permission, approval or license that may be required under applicable law;

(G) Authenticated copy of occupancy certificate and completion certificate including its application.

(ii) Legal Documents;

(A) Details including the pro-forma of the application form, allotment letter, agreement for sale and the conveyance deed;

(B) Authenticated copy of the legal title deed reflecting the title of the promoter to the land on which development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person;

(C) Land Title Search Report from an advocate having experience of not less than ten years in land related matters;

(D) Details of encumbrances on the land on which development is proposed including any rights, title, interest or name of any party in or over such land along with details or no encumbrance certificate from an advocate having experience of not less than ten years in land related matters;

(E) Where the promoter is not owner of the land on which development is proposed, details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land proposed to be developed;

(F) Sanction letters:

(1) From banks for construction finances;

(2) From banks for home loan tie-ups.

(f) Contact details: Contact address, contact numbers and email-ids of the promoter and other officials handing the project.

(g) Such other documents or information, as may be specified by the Act or the rules and regulations made thereunder.

(2) For the purpose of clause (c) of Section 34, the Real Estate Regulatory Authority shall maintain a database and ensure that the information, specified therein shall be made available on its website, in respect of each project revoked or penalized, as the case may be.

(3) For the purpose of clause (d) of Section 34, the Real Estate Regulatory Authority shall ensure that the following information shall be made available on its website in respect of each real estate agent registered with it or whose application for registration has been rejected or revoked:

(a) For real estate agents registered with the Authority,-

(i) registration number and the period of validity of the registration of the real estate agent with the Real Estate Regulatory Authority;

(ii) brief details of his enterprise including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, etc.);

(iii) particulars of registration including the bye-laws, memorandum of association, articles of association, etc. as the case may be;

(iv) photographs of the real estate agent, if it is an individual and the photograph of the partners, directors, etc. in case of other persons;

(v) authenticated copy of the PAN card;

(vi) income tax returns filed under the provisions of the Income Tax Act, 1961 (No. 43 of 1961) for three financial years preceding the application or in case the applicant was exempted from filing returns under the provisions of the said Act for any of the three years preceding the application, a declaration to such effect;

(vii) authenticated copy of the address proof of the place of business and the contact address, contact numbers and email-ids of the real estate agent and other officials responsible.

(b) In case of applicants whose application for registration as a real estate agent has been rejected or real estate agents whose registration has been revoked by the Real Estate Regulatory Authority:

(i) registration number and the period of validity of the registration of the real estate agent with the Real Estate Regulatory Authority;

(ii) brief detail of his enterprises including its name, registered address, type of enterprise (proprietorship, societies, partnership, companies, etc.);

(iii) photograph of the real estate agent, if it is an individual and the photograph of the partners, directors, etc. in case of other person.

(c) Such other documents or information, as may be specified by the Act or the rules and regulations made thereunder.

(4) The Real Estate Regulatory Authority shall maintain a back-up, in digital form, of the contents of its website in terms of this rule and shall ensure that such back-up is updated on the last day of each month.

Chapter-V Rate of Interest payable by Promoter and Allottee and timelines for Refund

17. Rate of interest payable of the promoter and the allottee.- The rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the State Bank of India Prime Lending Rate plus two percent.

18. Timelines for refund.- Any refund of money along with the applicable interest and compensation, if any, payable by the promoter in terms of the Act or the rules and regulations made thereunder, shall be payable by the promoter to the allottee within forty-five days from the date on which such refund along with applicable interest and compensation, if any, becomes due.

Chapter-VI Real Estate Regulation Authority

19. Manner of selection of chairperson and members of the Authority. (1) As and when vacancies of chairperson or a Member in the Real Estate Regulatory Authority exist or arise, or are likely to arise, the state Government may make a reference to the selection committee in respect of the vacancies to be filled.

(2) The Selection Committee may, for the purpose of selection of the chairperson or a Member of the Real Estate Regulatory Authority, follow such procedure as it may deem fit.

(3) The Selection Committee shall select two persons for each vacancy and recommend the same to the State Government within a period of forty five days from the date of reference made under sub-rule (1) of rule 19.

(4) The state Government shall within thirty days from the date of the recommendation by the Selection Committee, appoint one of the two persons recommended by the selection committee for the vacancy of the chairperson or Member, as the case may be.

20. Salary and allowances payable and other terms and conditions of service of Chairperson and Members of the Real Estate Regulatory Authority. – (1) The salaries and allowances payable to the chairperson and other members of the Authority shall be as follows, –

(a) The Chairperson shall be paid consolidated salary of two lakhs fifty thousand rupees per month’

(b) The Member shall be paid consolidated salary of two lakhs rupees Per month.

(2) The Chairperson and other Members shall be entitled to thirty days of earned leave for every completed year of service.

(3) The other allowances and conditions of service of the chairperson and the Members shall be such as may be determined by the Appropriate Government, from time to time’

21. Administrative powers of the Chairperson of the Real Estate Regulatory Authority.- The administration powers of the Chairperson of the Real Estate Regulatory Authority shall include making decisions with regard to the following,-

(a) all matters pertaining to staff strength, wages and salaries structures, emoluments, perquisites and personal policies;

(b) all matters pertaining to creation and abolition of posts;

(c) all matters pertaining to appointments, promotions, and confirmation for all Posts;

(d) acceptance of resignations by any Member, officer or employee;

(e) officiating against sanctioned posts;

(f) authorization of tours to be undertaken by any Member, officer or employee: within and outside India and allowance to be granted for the same;

(g) all matters in relation to reimbursement of medical claims;

(h) all matters in relation to grant of rejection of leaves;

(i) permission for hiring of vehicles for official use;

(j) nominations for attending seminars, conferences and training courses in India or abroad;

(k) permission for invitation of guests to carry out training course;

(1) all matters pertaining to staff welfare expenses;

(m) sanction scrapping or write-off of capital assets, which due to normal wear and tear have become unserviceable or are considered beyond economical repairs;

(n) all matters relating to disciplinary action against any Member, officer or employee;

(o) any other powers that may be required for the efficient functioning of the Authority and enforcement of the provisions of the Act and these Rules.

22. Salary, allowances payable and other terms and conditions of service of the officers, employees, experts and consultants engaged by the Real Estate Regulatory Authority.-

(1) The conditions of service of the officers and employees of the Authority and any other category of employees in the matter of pay, allowances, leave,, joining time, joining time day, age of superannuation shall be regulated in accordance with such rules and regulations as, from time to time, are applicable to officers and employees of the State Government and drawing the corresponding scales of pay;

(2) Consultants or experts that may be engaged by the Authority shall be paid a monthly honorarium as may be determined by the state Government, from time to time;

(a) the consultant or expert shall not be deemed to be regular members of the staff borne on the establishment of the Authority;

(b) The consultant or expert may be appointed for a tenure of one year, extendable on year to year basis;

(c) their appointment may be terminated by the Authority by serving one month’s notice.

(3) The State Government shall have power to relax the provisions of any of these rules in respect of any class or category of officers or employees or consultants and experts, as the case may be.

23.. Functioning of the Authority .- (1) The office of the Real Estate Regulatory Authority shall be located at such place as may be determined by the State Government by the notification.

(2) The working days and office hours of the Real Estate Regulatory Authority shall be same as that of the State Government.

(3) The official common seal and emblem of the Real Estate Regulatory Authority shall be such as the State Government may specify.

24. Additional powers of the Authority.- (1) In addition to the powers specified in sub-section (2) of Section 35 the Real Estate Regulatory Authority shall have the following additional powers,-

(a) require the promoter, allottee or real estate agent to furnish in writing such information or explanation or produce such documents within such reasonable time, as it may deem necessary;

(b) requisitioning, subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (No. 1 of 1872), any public record or document or copy of such record or document from any office.

(2) The Real Estate Regulatory Authority may call upon such experts or consultants from the fields of economics, commerce, accountancy, real estate, construction, architecture or engineering or from any other discipline as it deems necessary, to assist the Authority in the conduct or any inquiry or proceedings before it.

(3) On receipt of the application in prescribed form, complete in all respects under Section 4 read with Rule 3 for registration of a project, the Authority may review the documents submitted along with the application under said section and enquire, inter-alia, into the following matters and such other matters, as it may consider necessary, prior to grant of registration within the time prescribed under sub-section (1) of Section 5, namely:-

(a) the nature of rights and interest of the promoter to the land, which is proposed to be developed;

(b) extent and location of area of land proposed to be developed;

(c) layout plan of the project;

(d) financial, technical and managerial capacity of the promoter to develop the project;

(e) plan regarding the development works to be executed in the project; and

(F) conformity of development of the project with neighboring areas.

(4) The Authority may in the interest of the allottees, enquire into the payment of amounts imposed as penalty, interest or compensation, paid or payable by the promoter, in order to ensure that the promoter has not,-

(a) withdrawn the said amounts from the account maintained as provide under sub-clause (D) of clause (1) of sub-section (2) of Section 4; or

(b) used any amounts paid to such promoter by the allottee for the real estate project for which the penalty, interest or compensation is payable, or any other real estate project;

(c) recovered the amounts paid as penalty, fine or compensation from the allottees of the relevant real estate project or any other real estate project.

25. Manner of recovery of interest, penalty and compensation.- Subject to the provisions of sub-section (1) of Section 40, the recovery of the amounts due as arrears of land revenue shall be carried out in the manners provided in local laws.

26. Manner of implementation of order, direction or decisions of the adjudicating officer, the Authority or the Appellate Tribunal.- For the purpose of sub-section (2) of section 40, every order passed by the Adjudicating Officer, Real Estate Regulatory Authority or Appellate Tribunal, as the case may be, under the Act or the rules and regulations made thereunder, shall be enforced by the Adjudicating Officer, Real Estate Regulatory Authority or the Appellate Tribunal in the same manner as if it were a decree or order made by the principal civil court in a suit pending therein and it shall be lawful for the Adjudicating Officer, Real Estate Regulatory Authority or Appellate Tribunal, as the case may be, in the event of its inability to execute the order, send such order to the principal civil court, to execute such order either within the local limits of whose jurisdiction the real estate project is located or in the principal civil court within the local limits of whose jurisdiction the person against whom the order is being issued, actually and voluntarily resides, or carries on business, or personally works for gain.

Chapter-VII Real Estate Appellate Tribunal 

27. Form for filing Appeal and the fees payable.- (1) Every appeal filed under sub-section (1) of Section 44 shall be accompanied by a fees of five thousand rupees in a form of demand draft or a bankers cheque drawn on a scheduled bank in favour of the Appellate Tribunal and payable at the branch of that bank at the station where the seat of the said Appellate Tribunal is situated or through online payment, as the case may be.

(2) Every appeal shall be filed in Form-L, in triplicate, until the application procedure is made web based, along with the following documents, namely: –

(a) true copy of the order against which the appeal is filed;

(b) copies of the document relied upon by the appellant and referred to in the appeal; and

(c) an index of the documents.

(3) Every appeal shall be either filed at the filling counter of the registry of the Appellate Tribunal or through a registered post or through online system, as applicable.

(4) In case of an appeal sent by post under sub-rule (3), it shall be deemed to have been presented to the Appellate Tribunal on the day on which it is received in its office.

(5) where a party to the appeal is represented by an authorized person, as provided under Section 56, a copy of authorization to act as such and the written consent there to by such authorized person, both in original, shall be appended to the appeal or the reply to the notice of the appeal, as the case may be.

(6) On the date of hearing or any other date to which hearing could by adjourned, it shall be obligatory on the parties or their agents, as the case may be, to appear before the Appellate Tribunal:

Provided that where the appellant or his authorized person, as the case may be, fails to appear before the Appellate Tribunal on such days, the Appellate Tribunal may in its discretion either dismissed the appeal for default or decide it on merits and where the opposite party or his authorized person fails to appear on the date of hearing, the Appellate Tribunal may decide the appeal ex-parte.

(7) The procedure for day to day functioning of the Appellate Tribunal, which have not been provided by the Act or the rules made thereunder, shall be such as specified by the Appellate Tribunal.

28. Manner of selection of members of the Appellate Tribunal.- (1) As and when vacancies of a Member in the Appellate Tribunal exist or arise, or are likely to arise, the State Government may make a reference to the Selection Committee in respect of the vacancies to be filled.

(2) The Selection Committee may, for the purpose of selection of the Member of the Appellate Tribunal, follow such procedure as deemed fit.

(3) The Selection Committee shall select two persons for each vacancy and recommend the same to the State Government.

(4) The Selection Committee shall make its recommendation to the State Government within a period of forty five days from the date of reference made under sub-rule (1).

(5) The State Government shall within thirty days from the date of the recommendation by the Selection Committee, appoint one of the two persons recommended by the Selection Committee for filling the vacancy of the Member.

29. Salary and allowance payable and other terms and conditions of service of Chairperson and Members of the Appellate Tribunal.- ( 1) The salaries and allowances payable to the Chairperson and Members of the Appellate Tribunal shall be as follows, –

(a) The Chairperson shall be paid a monthly salary equivalent to the last drawn salary by such person, as a Judge of a High Court;

(b) The whole-time Member shall be paid a monthly salary equivalent to the last drawn salary at the post held by such person, prior to his appointment as a Member of the Appellate Tribunal;

(c) Every full-time Member, who is not a servant of the Government, shall be paid a monthly salary equivalent to the Additional Secretary to the Government of India;

(d) Every part-time Member, who is not a servant to the Government, shall be paid a sitting fee for each day he attends the meeting of the Appellate Tribunal as may by determined by the State Government, from time to time.

(2) The Chairperson and every other Member shall be entitled to thirty days of earned leave for every year of service.

(3) The other allowances and conditions of service of the Chairperson and the whole-time Member shall be as per notification issued by the State Government, from time to time.

30. Procedure for inquiry of the charges against the Chairperson or Member of the Authority or the Appellate Tribunal.- (1) In the event of the State Government becoming aware of occurrence of any of the circumstances specified in clause (d) or clause (e) of sub-section (1) of Section 26 in case of a Chairperson or Member of the Real Estate Regulatory Authority or as specified under sub-section (1) of Section 49 in case of a Chairperson or Member of the Appellate Tribunal, by receipt of a complaint in this regard or suo motu, as the case may be, the State Government shall make a preliminary inquiry with respect to such charges against the Chairperson or any Member of the Real Estate Regulatory Authority or Appellate Tribunal, as the case may be.

(2) If , on preliminary inquiry, the State Government considers it necessary to investigate into the allegation, it shall place the complaint, if any, together with supporting material as may be available, before the Chief justice of the High Court to appoint a sitting or retired judge of the High Court.

(3) The State Government shall forward to the Judge, copies of-

(a) the statement of charges against the Chairperson or Member of the Real Estate Regulatory Authority or Appellate Tribunal, as the case may be; and

(b) material documents relevant to the inquiry.

(4) The Chairperson or Member of the Authority or Appellate Tribunal, as the case may be, shall be given a reasonable opportunity of being heard with respect to the charges within the time period as may be specified in this behalf by the Judge.

(5) Where it is alleged that Chairperson or Member of the Real Estate Regulatory Authority or Appellate Tribunal, as the case may be, is unable to discharges the duties of his office efficiently due to any physical or mental incapacity and the allegation is denied, the Judge may arrange for the medical examination of the Chairperson or Member.

(6) After the conclusion of the investigation, the Judge shall submit his report to the State Government stating therein his findings and the reasons thereof on each of the articles of charges separately with such observations on the whole case as he thinks fit.

(7) Thereafter, the State Government shall in consultation with the Chief Justice of the High Court decide to either remove or not to remove the Chairperson or Member of the Real Estate Regulatory Authority or Appellate Tribunal, as the case may be.

31. Salary and allowances payable and other terms and conditions of service of the officers and other employees of the Appellate Tribunal. – (1) The conditions of service of the officers and employees of the Authority and any other category of employees in the matter of Pay, allowances, leave, joining time, , joining time pay, age of superannuation shall be regulated in accordance with such rules and regulation as are, from time to time, applicable to officers and employees of the State Government.

(2) The State Government shall have power to relax the provisions of any of these rules in respect of any class or category of officers or employees or consultants and experts, as the case may be.

32. Additional powers of the Appellate Tribunal.- The Appellate Tribunal may call upon such experts or consultant from the fields of economics, Commerce, accountancy, real estate, competition, construction, architecture or engineering or from any other discipline as it deems necessary, to assist the Appellate Tribunal in the conduct of any inquiry or proceedings before it.

33. Administrative powers of the Chairperson of the Appellate Tribunal.- The administrative powers of the Chairperson of the Appellate Tribunal shall include making decisions with regard to the following,-

(a) all matters pertaining to staff strength, wages and salaries structure, emoluments, perquisites and personnel policies;

(b) all matters pertaining to creation and abolition of posts;

(c) all matters pertaining to appointments, promotions and confirmation for all Posts;

(d) acceptance of resignations by any Member, officer or employee;

(e) officiating against sanctioned posts;

(f) authorization of tours to be undertaken by any Member, officer or employee: within and outside India and allowance to be granted for the same;

(g) all matters in relation to reimbursement of medical claims;

(h) all matters in relation to grant or rejection of leaves;

(i) permission for hiring of vehicles for official use;

(j) nominations for attending seminars, conferences and training courses in India or abroad;

(k) permission for invitation of guests to carry out training course;

(l) all matters pertaining to staff welfare expenses;

(m) sanction scrapping or write-off of capital assets which due to normal wear and tear have become unserviceable or are considered beyond economical repairs;

(n) all matters relating to disciplinary action against any Member, officer or employees;

(o) any other powers that may be required for the efficient functioned of the Appellate Tribunal and enforcement of the provisions of the Act and these Rules.

Chapter-VIII Offences and Penalties

34, Terms and conditions and the fine payable for compounding of offence.- (1) The court shall, for the purposes of compounding any offence specified under Section 70, accept a sum of money as specified in the Table below:

S.N. Offence Money to be paid for compounding the offence
1 2 3
1 Imprisonment under sub section (2) of Section 59 The money to be paid for compounding shall be proportionate to the term of imprisonment subject to maximum of 10% of the estimated cost of the real estate projects for three years.
2 Imprisonment under Section 64 The money to be paid for compounding shall be proportionate to the term of imprisonment subject to maximum of 10% of the estimated cost of the real estate projects for three years.
3 Imprisonment under Section 66 The money to be paid for compounding shall be proportionate to the term of imprisonment subject to maximum of 10% of the estimated cost for one Year of plot, apartment or building as the case may be, of the real estate project, for which the sale or purchased has been facilitated.
4 Imprisonment under Section 68 The money to be paid for compounding shall be proportionate to the term of imprisonment subject to maximum of 10% of the estimated cost for one Year of plot, apartment or building as the case may be.

Provided that, the State Government may, by notification in the official gazette, amend the rates specified in the table above.

(2) On payment of the sum of money in accordance with the table above, any person in custody in connection with that offence shall be set at liberty and no proceeding shall be instituted or continued against such person in any court.

(3) The acceptance of the sum of money for compounding an offence in accordance with the table above, by the Court shall be deemed to amount to an acquittal within the meaning of Section 300 of the Code of Criminal Procedure, 1973 (No. 2 of 1972).

(4) The promoter, allottee or real estate agent, as the case may be, shall comply with the orders of the Real Estate Regulatory Authority of the Appellate Tribunal, within the period specified by the court, which shall not be more than 30 days from the date of compounding of the offence.

35. Manner of holding an inquiry of complaint under Section 31 by the Regulatory Authority.- (1) Any aggrieved person may file a complaint with the Authority for any violation under the Act or the rules and regulations made thereunder, save as those provided to be adjudicated by the Adjudicating Officer, in Form-M, in triplicate, until the application procedure is made web based, which shall be accompanied by a fees of one thousand rupees in the form of a demand draft or a bankers cheque drawn on a Scheduled Bank in favour of authority and payable at the branch of that bank at the station where the seat of the said Authority is situated or through online payment, as the case may be.

(2) The Authority for the purposes of deciding any complaint as specified under sub-rule (1), shall follow summary procedure for inquiry in the following manner, namely:-

(a) upon receipt of the complaint, Authority shall issue a notice along with particulars of the alleged contravention and the relevant documents to the respondent;

(b) the respondent against whom such notice is issued under clause (a) of sub-rule (2), may file his reply in respect of the complained within the period as specified in the notice;

(c) the notice may specified the date and time for further hearing and the date and time for the hearing shall also be communicated to the complainant;

(d) on the date so fixed the authority shall explain to the respondent about the contravention alleged to have been committed in relation to any of the provisions of the act or the rules and regulation made there under and if the respondent, –

(i) pleads guilty, the Authority shall record the plea, and pass such orders including imposition of penalty as it thinks fit in accordance with the provisions of the Act or the rules and regulations, made thereunder;

(ii) does not plead guilty and contests the complaint, the Authority shall demand an explanation from the respondent;

(e) in case the Authority is satisfied on the basis of the submissions made that the complaint does not require any further inquiry it may dismiss the complaint;

(f) in case the Authority is satisfied on the basis of the submissions made that the there is need for further hearing into the complaint it may order production of documents or other evidence on a date and time fixed by it;

(g) the Authority shall have the power to carry out an inquiry in to the complaint on the basis of documents and submissions;

(h) the Authority shall have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce to any documents which in the opinion of the adjudicating officer, may be useful for or relevant to subject matter of enquiry and taking such evidence, the Authority shall not be bound to observe the provisions of the Indian Evidence Act, 1872 (1 of 1872);

(i) on the date so fixed, the Authority upon consideration of the evidence produced before it and other records and submission is satisfied that,-

(i) the respondent is in contravention of the provisions of the Act or the rules and regulations made thereunder, it shall pass such orders including imposition of penalty as it thins fit in accordance with the provisions of the Act or the rules and regulations made thereunder;

(ii) the respondent is not in contravention of the provisions of the Act or the rules and regulations made there under, the Real Estate Regulatory Authority may, by order in writing, dismiss the complaint, with reasons to be recorded in writing;

(j) if any person fails, neglects or refuses to appear, or present himself as required before the Authority, the Authority shall have the power to proceed with the inquiry in the absence of such person or persons after recording the reasons for doing so.

(3) The procedure for day to day functioning of the Authority, which have not been provided by the Act or the rules made thereunder, shall be such as specified by regulations made by the Authority.

(4) Where a party to the complaint is represented by an authorized person, as provided under Section 56, a copy of the authorization to act as such and the written consent there to by such authorized person, both in original, sha1l be appended to the complaint or the reply to the notice of the complaint, as the case may be.

36. Manner of filing a complaint with the Adjudicating Officer and the manner of holding a inquiry by the Adjudicating Officer.- (1) Any aggrieved person may file a complaint with the Adjudicating Officer for compensation under Section 12, 14, 18 and 19 in Form-N, in triplicate, until the application procedure is made web based, which shall be accompanied by a fees of one thousand rupees in the form of a demand draft or a bankers cheque drawn on a scheduled bank in favour of Authority and payable at the branch of that bank at the station where the seat of the said Authority is situated or through online payment, as the case may be.

(2) The Adjudicating Officer shall for the purposes of adjudging interest compensation follow summary procedure for inquiry in the following manner, namely: –

(a) upon receipt of the complaint, the adjudicating officer shall issue a notice along with particulars of the alleged contravention and the relevant documents to the respondent;

(b) The respondent against whom such notice as issued under clause (a) of sub-rule (2) may file has replied in respect of the complain within the period as specified in the notice;

(c) The notice may specified a date and time for further hearing and the date and time for the hearing shall also be communicated to the complainant;

(d) on the date so fixed the Adjudicating officer shall explain to the respondent about the contravention alleged to have been committed in relation to any of the provisions of the Act or the rules and regulation made there under and if the respondent,-

(i) pleads guilty, the Adjudicating officer shall record the plea, and by order in writing, order payment of interest as specified in rule 15 and such compensation as he thinks fit, as the case may be, in accordance with the provisions of the Act or the rules and regulations, made thereunder;

(ii) does not plead guilty and contests the complaint, the adjudicating officer shall demand an explanation from the respondent;

(e) in case the Adjudicating Officer is satisfied on the basis of the submissions made that the complaint does not require any further inquiry it may dismiss the complaint;

(f) in case the Adjudicating Officer is satisfied on the basis of the submissions made that the there is need for further hearing into the complaint, it may order production of documents or other evidence on a date and time fixed by it;

(g) the Adjudicating Officer shall have the power to carry out an inquiry in to the complaint on the basis of documents and submissions;

(h) the Adjudicating Officer shall have the power to summon an enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or two produce to any documents which in the opinion of the Adjudicating Officer, may be useful for or relevant to subject matter of enquiry and taking such evidence, the Adjudicating Officer shall not be bound to observed the provisions of the Indian evidence Act, 1872 (11 of 1872);

(i) on the date so fixed, the Adjudicating officer upon consideration of the evidence produced before it and other records and submission is satisfied that the respondent is, –

(a) liable to pay interest and compensation, as the case may be, the Adjudicating Officer may, by order in writing order payment of interest as specified in rule 17 and such other compensation as he may thinks fit, as the case may be, in accordance with the provisions of the Act or the rules and regulations made thereunder; or

(b) not liable to pay any interest and compensation, as the case may be, the adjudicating Officer may by order in writing, dismiss the complaint, with reasons to be recorded in writing;

(j) if any person fails, neglects or refuses to appear, or present himself as required before the Adjudicating Officer, the Adjudicating Officer shall have the power to proceed with the inquiry in the absence of such person or persons after recording the reasons for doing so.

(3) The procedure for day to day functioning of the adjudicati