Effect of non-completion of project.

§16

Summary

(a) If the promoter fails to complete construction and obtain occupation certificate of any building or buildings in the project in accordance with the terms of the agreement by the date specified or any further date agreed to by the parties or as may be decided by the Housing Regulatory Authority, the Housing Regulatory Authority may, after giving reasonable opportunity of being heard to the applicant and the promoter, and on being satisfied that the promoter is not able to complete the construction and obtain occupation certificate, pass an appropriate order to enable completion of the construction of that building and obtain occupation certificate thereof. Such order of the Housing Regulatory Authority may, inter-alia, provide for,- (i) formation and registration of a legal entity of sixty per cent. of the flat purchasers in the manner as may be prescribed who have come before the Housing Regulatory Authority ; (ii) appointment of the legal entity as an escrow agent for taking over possession of the building and area appurtenant thereto, in the manner as may be prescribed ; (iii) directing the Competent Authority to transfer the Retained Flats in the name of the escrow agent within such period and in the manner as may be prescribed ; (iv) authorizing escrow agent to appoint contractors, consultants and other agencies required to complete the construction and obtain occupation certificate on such terms and conditions as may be decided by the escrow agent in the manner as may be prescribed : Provided that, notwithstanding anything contained in any other law for the time being in force, stamp duty or any other taxes, duties and levies shall not be payable on 'Retained Flats' being transferred to escrow agent under the orders of the Housing Regulatory Authority. (b) If the promoter, for reasons beyond his control, is unable to give possession of the flat by the date specified, or the further agreed date and a period of three months thereafter, or a further period of three months if those reasons still exist, then, the promoter shall be liable on demand, without prejudice to any other actions to which he may be liable, to refund the amount already received by him in respect of the flat with interest at a rate as may be prescribed including penalty as may be determined by the Housing Regulatory Authority.

(a) If the promoter fails to complete construction and obtain occupation certificate of any building or buildings in the project in accordance with the terms of the agreement by the date specified or any further date agreed to by the parties or as may be decided by the Housing Regulatory Authority, the Housing Regulatory Authority may, after giving reasonable opportunity of being heard to the applicant and the promoter, and on being satisfied that the promoter is not able to complete the construction and obtain occupation certificate, pass an appropriate order to enable completion of the construction of that building and obtain occupation certificate thereof. Such order of the Housing Regulatory Authority may, inter-alia, provide for,- (i) formation and registration of a legal entity of sixty per cent. of the flat purchasers in the manner as may be prescribed who have come before the Housing Regulatory Authority ; (ii) appointment of the legal entity as an escrow agent for taking over possession of the building and area appurtenant thereto, in the manner as may be prescribed ; (iii) directing the Competent Authority to transfer the Retained Flats in the name of the escrow agent within such period and in the manner as may be prescribed ; (iv) authorizing escrow agent to appoint contractors, consultants and other agencies required to complete the construction and obtain occupation certificate on such terms and conditions as may be decided by the escrow agent in the manner as may be prescribed : Provided that, notwithstanding anything contained in any other law for the time being in force, stamp duty or any other taxes, duties and levies shall not be payable on 'Retained Flats' being transferred to escrow agent under the orders of the Housing Regulatory Authority. (b) If the promoter, for reasons beyond his control, is unable to give possession of the flat by the date specified, or the further agreed date and a period of three months thereafter, or a further period of three months if those reasons still exist, then, the promoter shall be liable on demand, without prejudice to any other actions to which he may be liable, to refund the amount already received by him in respect of the flat with interest at a rate as may be prescribed including penalty as may be determined by the Housing Regulatory Authority.

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