The Punjab State Real Estate (Regulation and Development) Rules, 2017

GOVERNMENT OF PUNJAB
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
NOTIFICATION
The 8^th June, 2017

No. G.S.R.19/C.A.16/2016/Ss.2 and 84/2017.- In exercise of the powers conferred by section 84 read with sub-clause (iv) of clause (g) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (Central Act No.16 of 2016), and all other powers enabling him in this behalf, the Governor of Punjab, is pleased to make the following rules, for carrying out the purpose of the said Act, namely:-

CHAPTER-I
PRELIMINARY

1. Short title and commencement.- (1) These rules may be called the Punjab State Real Estate (Regulation and Development) Rules, 2017.

(2) They shall come into force on and with effect from the date of their 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 (Central Act No. 16 of 2016);

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

(c) “association of allottees” means a collective of the allottees of a real estate project, by whatever name called, registered under any law for the time being in force, acting as a group to serve the case of its members, and shall include the authorized representative of the allottees.

(d) “authenticated copy” means a self-attested copy of any document required to be provided by any person under these rules;

(e) “Form” means a 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) “partial completion certificate” means a certificate issued by the Authority competent to issue the same for a part of project area on completion of development works in that part or of a building block in case of built up projects as the case may be.

(h) “ongoing projects” means the Real Estate Projects which are ongoing in which development and development works as defined in Section 2(s) and Section 2(t) of the Act are still under way, excluding the area of portion of the Real Estate Project for which partial completion or occupation certificate, as the case may be, has been obtained by the promoter of the project.

(i) “project land” means any parcel or parcels of land on which the project is developed and constructed by a promoter;

(j) “section” means a section of the Act;

(k) “State Government” means the Government of the State of Punjab in the Department of Housing and Urban Development; and

(l) “super area of an apartment” means the gross covered area of the building, including the area covered by all such parts/areas in the project, which the allottee shall use by sharing it with other occupants of the project, including entrance lobby, drivers’/common toilet at ground floor, lift shafts, electrical shafts, fire shafts, plumbing shafts, common corridors and passages, staircases, mumties, service areas, including but not limited to lift machine room, maintenance offices or stores, security or fire control rooms and architectural features, if provided.

(2) The words and expressions used in these rules but not defined, shall have the same meaning 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 real estate project.- (1) The promoter shall furnish the following additional information and documents, along with those specified in section 4 for registration of the real estate project with the Authority, namely:-

(a) authenticated copy of the PAN(Permanent account number) card of the promoter;

(b) annual report including audited profit and loss account, balance sheet, cash flow statement, Director’s report and the auditor’s report of the promoter for the immediately preceding three financial years; and where annual report is not available, the audited profit and loss account, balance sheet, cash flow statement and the auditor’s report of the promoter for the immediately preceding three financial years;

(d) authenticated copy of the legal title deed reflecting the title of the promoter to the land on which development of project is proposed along with legally valid documents for change of title with authentication of such title;

(e) details of encumbrances on the land on which development of project is proposed, including details of any rights, title, interest, dues, litigation and name of party in or over such land or non encumbrance certificate through an advocate having experience of atleast ten years from the revenue authority not below the rank of Tehshildar, as the case may be;

(f) where the promoter is not the owner of the land on which development of real estate project 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 on which real estate project is proposed to be developed; and

(g) name, photograph, contact details and address of the promoter if it is an individual and the name, photograph, contact details and address of the Chairman, partners, Directors, as the case may be, and the authorised person in case of other entities.

(2) An application to the Authority for registration of real estate project shall be made in writing in Form’A’ in triplicate until the procedure is made web based for filling of such application

(3) The declaration to be submitted under clause (I) of sub-section (2) of section 4 of the Act, shall be as per Form ‘B’, which shall include a declaration stating 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. However, the promoter may charge different rates from allottees for plots/apartments for different locations, specifications and at different times.

(4) The promoter shall pay registration fee by way of demand draft for a sum calculated at the rate given in Schedule-1 as amended from time to time.

4. Disclosure by promoters of ongoing 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 or partial completion certificate, as the case may be, shall, within the time specified in the said sub-section, make an application to the Authority in the form and manner as provided in rule 3.

(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, 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. Grant or rejection of registration of the real estate project.- (1) Upon the registration of a real estate project as per section 5 read with rule 3 and rule 4, as the case may be, the Authority shall issue a registration certificate within a period of thirty days with a registration number as per Form ‘C’ to the promoter.

(2) In case of rejection of the application as per section 5, the Authority shall inform the applicant as per Form ‘D’:

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

Provided further that if no intimation regarding registration or rejection of registration of the project is given within a period of thirty days, the registration of the real estate project shall be deemed to have been given.

6. Extension of registration of real estate 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 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 fees as specified under sub-rule (4) of rule 3 along with an explanatory note setting out the reasons for delay in the completion of the real estate project and the need for extension of registration for the real estate project, along with documents supporting such reasons:

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

(3) 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 shall 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 the application within such time period as may be specified by it.

7. Revocation of Registration of the project.- Upon the revocation of registration of a project as per section 7, the Authority shall inform the promoter about such revocation as per Form ‘D’.

8. Agreement for sale.- (1) For the purpose of sub-section (2) of section 13, 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.

(3) The Promoter shall not make any additions and alterations beyond the extent of 5(five) percent in the sanctioned plans, layout plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be, without the previous written consent of the Allottee:

Provided that the Promoter may make such minor additions or alterations as may be required by the Allottee, or such minor changes or alterations as per the provisions of the Act:

Provided further that if the Authority competent to issue approvals is of the view that certain changes in the project are necessary, he may on application of the promoter do so for the reasons to be recorded in writing and in that case consent of allottees shall not be required.

CHAPTER-III
REAL ESTATE AGENT

9. Application for registration by the real estate agent.- (1) Every real estate agent required to register as per sub-section (2) of section 9 shall make an application for registration in writing to the Authority as per Form ‘G’ along with the following documents, namely:-

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

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

(c) name, address, contact details and photograph of the real estate agent, if he is an individual and the names, addresses, contact details and photographs of the partners, directors etc. in case of other entities;

(d) authenticated copy of the PAN card of the real estate agent;

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

(f) 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 or renewal fee, as the case may be, by way of a demand draft or a bankers cheque drawn on any scheduled bank, for a sum as per Schedule-1.

10. Grant or rejection of registration of the real estate agent.- (1) On receipt of the application under rule 9, the Authority shall within a period of thirty days either grant registration to the real estate agent or reject the application, as the case may be:

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

(2) Upon the registration of a real estate agent, the Authority shall issue a registration certificate with a registration number in Form ‘H’ to the real estate agent.

(3) In case of rejection of the application, the Authority shall inform the applicant in Form ‘I’.

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

11. Renewal of registration of real estate agent.- (1) The registration granted to a real estate agent under the Act may be renewed 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.

(2) The application for renewal of registration shall be accompanied with a demand draft or a banker’s cheque drawn on any scheduled bank, for a sum as mentioned in Schedule 1.

(3) The real estate agent shall also submit all the updated documents set out in clauses (a) to (f) of sub-rule (1) of rule 9 at the time of application for renewal.

(4) In case of renewal of registration, the 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 Authority 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:

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

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

12. Revocation of Registration of real estate agent.- The Authority may, due to reasons specified under sub-section (7) of section 9, 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 as per Form ‘I’.

13. Books of accounts, records and documents.- The real estate agent shall maintain and preserve his books of accounts, records and documents in accordance with the provisions of the Income Tax Act, 1961.

14. 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 fulfil 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 UPLOADED ON THE WEBSITE OF THE AUTHORITY

15. Details to be uploaded on the website.- (1) The Authority shall ensure that the following information, as applicable, shall be made available on its website in respect of each project registered under the Act, namely:-

A. Details of the promoter including the following, namely :-

(i) Promoter 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 the parent entity including its name, registered address, type of enterprise (proprietorship, society, limited liability partnership, partnership, company, competent authority);

(b) background of promoter,- work experience of the promoter and in case of a newly incorporated or registered entity, work experience of the Chairman, Director, Partners, as the case may be, and that of the authorized persons of the parent entity ;and

(c) name , address, contact details and photograph of the promoter in case of an individual and the name, address, contact details and photograph of the Chairman, Directors, Partners, as the case may be, and that of the authorized persons;

(ii) track record of the promoter,-

(a) number of years of experience of the promoter or parent entity, as the case may be, in real estate development in the State of Punjab;

(b) number of years of experience of the promoter or parent entity, as the case may be, in real estate development in other States or Union Territories;

(c) number of completed projects and area constructed till date in the past five years, including the status of the projects, delay in its completion, details of type of land and payments pending;

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

(e) details and profile of ongoing and completed projects for the last five years as provided under clause (b) of sub-section (2) of Section 4;

(iii) litigations,- details of litigations in relation to the real estate projects being registered with the Authority;

(iv) website,-

(a) web link to the promoter or parent entity, as the case may be; and

(b) web link to the project website.

B. Details of the real estate project including the following,- namely:-

(i) advertisement and prospectus issued with regards to the project;

(ii) 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; and

(iii) apartment, plot and garage/ covered car parking in stilt and basement related details,-

(a) details of the number, type and carpet area of apartments for sale in the project along-with the area of the exclusive balcony or verandah areas and the exclusive open terrace areas with the apartment, if any, or details of the number, type and area of plots for sale in the project or both, as the case may be;

(b) details of the number and areas of garage/ covered car parking in stilt and basement for sale in the project; and

(iv) real estate agents registered under the Act; Names and addresses of real estate agents for the project;

(v) consultants,- details, including name and addresses of contractors, architect and structural engineers and other persons concerned with the development of the project such as,-

(a) name and address of the person;

(b) names of promoters;

(d) names and profile of key projects completed;

(vi) location,- the details of the location of the project, with clear demarcation of land dedicated for the project along with its boundaries including the latitude and longitude of the end points of the project;

(vii) development Plan,-

(a) the plan of development works to be executed in the proposed real estate project and the proposed facilities to be provided thereof including fire fighting facilities, drinking water facilities, emergency evacuation services, use of renewable energy etc.;

(b) amenities:- a detailed note explaining the 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) Project schedule:- the plan of development works to be executed in the project and the details of the proposed facilities to be provided thereof and the timelines to achieve the same; and

(d) The detailed specification of design of apartment and material to be used.

(e) The stage wise time schedule of completion of the real estate project, including the provision for civic infrastructure like water, sanitation and electricity etc

C. Financial details of the promoter,-

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

(ii) the annual report including audited profit and loss account, balance sheet, cash flow statement, Director’s report and the auditor’s report of the promoter for the immediately preceding three financial years and where annual report is not available, the audited profit and loss account, balance sheet, cash flow statement and the auditor’s report of the promoter for the immediately preceding three financial years and in case of newly incorporated or registered entity such information shall be disclosed for the parent entity.

D. The promoter shall upload the following updates on the webpage for the project, within fifteen days from the expiry of each quarter, namely :-

(i) list of number and types of apartments or plots booked;

(ii) list of number of garages/ covered car parking in stilt and basement for sale and booked;

(iii) status of the project,-

(a) status of construction of each building with photographs;

(b) status of construction of each floor with photographs; and

(iv) Status of approvals,-

(a) approval received;

(b) approvals applied and expected date of receipt;

(d) modifications, amendment or revisions, if any, issued by the competent authority with regard to any sanctioned plan, layout plan, specification, license, permit or approval for the project.

E. Details of approvals, permissions, clearances, legal documents,-

(i) approvals,-

(a) 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 phases, an authenticated copy of the license or land use permission, building sanction plan and the commencement certificate for each of such phases;

(b) authenticated copy of the site plan or site map showing the location of the project land along with names of revenue estates, khasra/khautni numbers and area of each parcel of the project land;

(c) authenticated copy of the layout plan of the real estate project or the phase thereof, and also the layout plan of the whole real estate project as sanctioned by the competent authority and other specifications of the real estate project ;

(d) floor plans for each tower and block including clubhouse, amenities and common areas;

(e) any other permission, approval, or license that may be required under applicable law; and

(f) authenticated copy of occupancy certificate and completion certificate including its application;

(ii) legal documents,-

(a) details including the Performa 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 of project is proposed along with legally valid documents with authentication of such title, if such land is owned by another person;

(d) details of encumbrances on the land on which development of project is proposed including details of any rights, title, interest and name of any party in or over such land or non encumbrance certificate through an advocate having experience of atleast ten years from the revenue authority not below the rank of Tehsildar, as the case may be;

(e) 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;

(f) details of mortgage or charge, if any, created on the land and the project.

F. contact details,- contact address, contact numbers and email-ids of the promoter, authorized person and other officials handling the project.

(2) The Authority shall ensure that the following information is 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, namely:-

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 Authority;

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

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

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

(v) authenticated copy of the PAN card(s);

(vi) 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 have been rejected or real estate agents whose registration has been revoked by the Authority:-

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

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

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

C. Such other documents or information as may be specified by the Act or the rules and regulations made there under.

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

CHAPTER-V
INTEREST PAYABLE BY PROMOTER AND ALLOTTEE AND TIMELINES FOR REFUND

16. Interest payable by 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 highest Marginal Cost of Lending Rate plus two percent:

Provided that in case the State Bank of India Marginal Cost of Lending Rate is not in use, it would replaced by such bench mark lending rates which the State Bank of India may fix from time to time for lending to the general public.

17. Timelines for refund.- Any refund of monies 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 ninety days from the date on which such refund along with applicable interest and compensation, if any, becomes due.

CHAPTER-VI
REAL ESTATE REGULATORY AUTHORITY

18. Selection of Chairperson and Members of the Authority.- (1) As and when vacancies of Chairperson or any other Member in the 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 Authority, follow such procedure as deemed fit including the appointment of a search committee consisting of such persons as the Selection Committee considers appropriate to suggest a panel of names for appointment as Chairperson or Member of the Authority.

(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 sixty days from the date of reference made under sub- rule (1).

(5) The State Government shall within thirty days from the date of receipt 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 other Member, as the case may be.

19. Salary and allowances payable to and other terms and conditions of service of Chairperson and other Members of the 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 a consolidated monthly salary of two lakh fifty thousand rupees and shall not be entitled to any allowance relating to house and vehicle;

(b) The Member shall be paid a consolidated monthly salary of two lakh rupees and shall not be entitled to any allowance relating to house and vehicle;

(2) The Chairperson and other Members shall be entitled to thirty days of earned leave for every completed one 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 State Government from time to time.

20. Administrative powers of the Chairperson of the Authority.- The administrative powers of the Chairperson of the regulatory authority shall include making decisions with regard to the following:-

(a) Officiating against sanctioned posts;

(b) authorization of tours to be undertaken by any Member, officer or employees of the Authority within India and the allowance(s) to be granted for the same. For foreign tours, prior approval of the State Government shall be required;

(d) all matters in relation to grant or rejection of leaves.

(e) permission for hiring of vehicles for official use. However, for the number and type of vehicles to be hired, prior approval of the State Government shall be required;

(f) nominations for attending seminars, conferences and training courses in India. For foreign trainings, prior approval of the State Government shall be required ;

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

(h) all matters pertaining to staff welfare expenses;

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

(j) all matters relating to disciplinary action against the employees of the Authority.

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

(2) The State Government shall have the power to relax the provisions of any of these rules in respect of any class or category of officers or employees.

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

(2) The working days and office hours of the Authority shall be the same as that of the normal working days and office norms of the other offices of the State Government.

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

(4) Every notice, order and direction of the Authority shall bear the seal of the Authority which shall be in custody with the person designated by the Chairperson.

(5) The Authority shall ordinarily have sitting at its headquarters and at such other places as the Chairperson may by general or special order specify.

23. Additional powers of the Authority.- (1) In addition to the powers specified in sub-section (2) of section 35, the Authority shall exercise the following additional powers, namely:-

(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; and

(b) requisitioning, subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), any public record or document or copy of such record or document from any office.

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

(3) 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 under sub- clause (D) of clause (l) of sub-section (2) of section 4; or

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

(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.

24. Recovery of interest, penalty and compensation.- The recovery of the amount due such as interest, penalty or compensation shall be recovered as arrears of land revenue in the manner provided under applicable local laws.

25. 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, Authority or Appellate Tribunal, as the case may be, under the Act or the rules and regulations made there under, shall be enforced by the adjudicating officer, 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, 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

26. Appeal and the fees payable.- (1) Every appeal filed under sub- section (1) of section 44 shall be accompanied by a fee of one thousand rupees in the form of a demand draft or a bankers cheque drawn on any scheduled bank in favor 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.

(2) Every appeal shall be filed as per Form ‘L’ along with the following documents, namely:-

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

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

(3) Every appeal shall be either filed at the filing 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 the authorization to act as such and the written consent thereto 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 be 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 appellate 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 distraction either dismiss 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 as specified by the Appellate Tribunal.

27. 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 including the appointment of a search committee consisting of such persons as the Selection Committee considers appropriate to suggest a panel of names for appointment as Member of the Appellate Tribunal.

(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 appropriate Government within a period of sixty days from the date of reference made under sub- rule (1).

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

28. Salary and allowances payable and other terms and conditions of service of Chairperson and Members of the Appellate Tribunal.-

(a) the Chairperson:

Serial No.	Item	Detail
1.	Salary	In case of serving Judge, the monthly salary shall not be less than the salary he/she is drawing as a serving Judge of the High Court and in case of a retired Judge, the monthly salary shall be the last drawn salary as a Judge minus pension. DA as admissible from time to time.
2.	Vehicle	Staff Car with 200 liters of petrol per month or actual consumption (Whichever is less).
3.	Medical facility	At the rate admissible to a sitting Judge of High Court at present means actual reimbursement without any limit.
4.	Electricity/Water reimbursement	Shall be entitled to reimbursement of electricity for his residence up to limit of 10000 units per annum and 3600 KL water per month.
5.	Leave	Shall be entitled to 30 days of earned leave for every completed one year of service.
6.	Telephone	Shall be entitled to telephone at office (with no limit) and at residence up to limit of 5000 calls per month.
7.	Accommodation	Shall be entitled to a rent free accommodation as per entitlement of a sitting Judge or in lieu of Government accommodation, House Rent Allowance as per entitlement of a sitting Judge of High Court i.e. @ Rs. 10000/- per mensum.
8.	Sumptuary allowance	As admissible to a sitting Judge of High Court.
9.	LTC	At the rate admissible to a sitting Judge of High Court.

(b) the Member:

Serial No.	Item	Detail
1	Salary and allowance and other benefits of Member.	Shall be entitled to receive last pay drawn at the time of his retirement in the State of Punjab: Provided that if, the Member at the time of his appointment was in receipt of a pension or being eligible for that elected to draw a pension in respect of any previous service under the Central Government or a State Government, his salary in respect of any service as a Member shall be reduced: a) By the amount of that pension; b) If he had, before assuming office, received in lieu of portion of pension due to him/ her in respect of such previous service, the commuted value thereof by the amount of that portion of the pension; and c) By any other form of retirement benefits, being drawn or availed of or to be drawn by him. d) In case a Member has retired from service before 01.01.2016, his last pay would be revised on notional basis in the revised pay scale as per relevant fitment table. e) The member, who is not a servant of the Govt., shall be paid a monthly salary equivalent to the Additional Secretary to the Govt. of India.
2	Accommodation for Member	i) The Member shall be entitled to Govt. accommodation as per entitlement of the rank of Principal Secretary to Govt. of Punjab. ii) In case, a member does not avail of the facility of Government accommodation, he shall be entitled to get maximum, amount of Rs. 10,000/- in lieu of such accommodation as rent.
3	Transport	i) The Member shall be provided a staff car and a driver. However, if he wishes to use his personal car and driver, he/ she shall be granted an additional allowance of Rs. 10,000/- per month in lieu of the staff car, petrol and the driver. ii) The member shall be entitled to use Goverment vehicle for private purpose on the same analogy as is admissible to the Principal Secretary of the State of Punjab.
4	Travel Allowance	For journey performed on duty within or outside the State of Punjab, but within the territory of India, or at the time of appointment or retirement, the Member shall be entitled to draw such travelling and daily allowance, as is admissible to the Principal Secretary, Grade Officer of the State of Punjab.
5	Medical Treatment	The medical treatment to a member and his family members shall be provided in accordance with the rules which for the time being, apply to the Principal Secretary Grade Officer of the State of Punjab.
6	Leave	Shall be entitled to 30 days of earned leave for every completed one year of service.
7	Authority competent to grant leave	The power to grant or refuse leave to the Member and to revoke or curtail the leave granted to him, shall vest in the Governor of State of Punjab.
8	Pension	The Member shall not be entitled to any pensionary benefits for the period of service rendered in the Tribunal.

29. Inquiry of the charges against the Chairperson or Member of the Authority or the Appellate Tribunal.- (1) The State Government shall on the 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 Authority or as specified under sub-section (1) of section 49 in case of a Chairperson or Member of the Appellate Tribunal, either by receipt of a complaint in this regard or suo motu, as the case may be, make a preliminary scrutiny with respect to such charges against the Chairperson or any Member of the Authority or Appellate Tribunal, as the case may be.

(2) If, on preliminary scrutiny, 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 Punjab and Haryana High Court to appoint a sitting or retired judge of the High Court for conducting the inquiry in the matter.

(3) The State Government shall forward to the Judge appointed under sub-rule (2), copies of,-

(a) the statement of charges against the Chairperson or Member of the 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 conducting the inquiry in the matter.

(5) Where it is alleged that the Chairperson or Member of the Appellate Tribunal is unable to discharge 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 of the Appellate Tribunal.

(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) After receipt of the report under sub-rule (6), State Government shall, in consultation with the Chief Justice of the Punjab and Haryana High Court, decide to either remove or not to remove the Chairperson or Member of the Authority or Appellate Tribunal, as the case may be.

30. 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 Appellate Tribunal and any other category of employees in the matter of pay, allowances, leave, joining time, joining time pay, age of superannuation and other conditions of service, shall be regulated in accordance with such rules and regulations as are, from time to time, applicable to the officers and employees of the State Government and drawing the corresponding scales of pay.

(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.

31. Additional powers of the Appellate Tribunal.- In addition to the powers specified in clause (g) of sub-section (4) of section 53, the Appellate Tribunal shall exercise 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; and

(b) requisitioning, subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872 (1 of 1872), any public record or document or copy of such record or document from any office.

32. The Appellate Tribunal may call upon such experts or consultants from the fields of economics, commerce, accountancy, real estate, construction, architecture, law 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) officiating against sanctioned posts;

(b) authorization of tours to be undertaken by any Member, officer or employee within India and the allowance(s) to be granted for the same. For foreign tours, prior approval of the State Government shall be required;

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

(e) permission for hiring of vehicles for official use. However, for the number and type of vehicles to be hired, the prior approval of the State Government shall be required;

(f) nominations for attending seminars, conferences and training courses in India. For foreign training courses, prior approval of the State Government shall be required;

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

(h) all matters pertaining to staff welfare expenses; and

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

34. Functioning of the Appellate Tribunal.- (1) The office of the Appellate Tribunal shall be located at such as may be determined by the State Government by notification.

(2) The working days and office hours of the Appellate Tribunal shall be the same as that of the normal working days and office hours of other offices of the State Government.

(3) The official common seal and emblem of the Appellate Tribunal shall be such as the State Government may specify.

(4) Every notice, order and judgement of the Appellate Tribunal shall bear seal of the Appellate Tribunal which shall be in custody with the person designated by the Chairperson.

(5) The Appellate Tribunal shall ordinarily have sittings at its headquarters and at such places as the Chairperson may by general or special order specify.

CHAPTER-VIII
OFFENCES AND PENALTIES

35. Terms and conditions and the fine payable for compounding of offence.- (1) The court shall, for the purposes of compounding any offence punishable with imprisonment under the Act, accept an amount as specified in the Table below:-

Offence	Money to be paid for compounding the offence
Punishable with imprisonment under sub section (2) of section 59	Upto ten percent of the estimated cost of the ongoing real estate project
Punishable with imprisonment under section 64	Upto ten percent of the estimated cost of the ongoing real estate project
Punishable with imprisonment under section 66	Upto ten percent of the estimated cost of the plot, apartment or building, as the case may be, of the real estate project, for which the sale or purchase has been facilitated
Punishable with imprisonment under section 68	Upto ten percent of the estimated cost of the plot, apartment or building, as the case may be.

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

(3) On the payment of the sum of money in accordance with sub-rule (1) and subsequent to compliance of the orders of the Authority or the Appellate Tribunal as provided in sub-rule (2), any person in custody in connection with that offence shall be set at liberty and no proceedings shall be instituted or continued against such person in any court for that offence.

(4) The acceptance of the sum of money for compounding an offence under sub-rule (1), by the Court shall be deemed to amount to be an acquittal within the meaning of section 300 of the Code of Criminal Procedure, 1973 (2 of 1974).

CHAPTER-IX
FILING OF COMPLAINT WITH THE AUTHORITY AND THE ADJUDICATING OFFICER

36. Filing of complaint with the Authority and inquiry by the 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’ which shall be accompanied by a fee of one thousand in the form of a demand draft or a bankers cheque drawn on a scheduled bank in favor of the Authority and payable at the branch of that bank at thestation where the seat of the Authority is situated.

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

(a) upon receipt of the complaint, the 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 complaint within the period as specified in the notice;

(c) the notice may specify 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 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 regulations made thereunder 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; or

(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 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 into the complaint on the basis of documents and submissions;

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

(i) the respondent is in contravention of the provisions of the Act or the rules and regulations made there under, it shall 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 there under; or

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

(i) 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.

37. Filing a complaint with the adjudicating officer and inquiry by the adjudicating officer.- (1) Any aggrieved person may file a complaint with the adjudicating officer for interest and compensation as provided under sections 12, 14, 18 and 19 in Form ‘N’ which shall be accompanied by a fee of one thousand rupees in the form of a demand draft or a bankers cheque drawn on a scheduled bank in favor of the Authority and payable at the branch of that bank at the station where the seat of the Authority is situated.

(3) The adjudicating officer shall for the purposes of adjudging interest and 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 is issued under clause (a) of sub-rule (2), may file his reply in respect of the complaint within the period as specified in the notice;

(c) the notice may specify 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 regulations 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 there under; or

(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 complaint does not require any further inquiry, he may dismiss the complaint;

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

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

(h) on the date so fixed, if the adjudicating officer, upon consideration of the evidence produced before him and other records and submissions, is satisfied that the respondent is,-

(i) 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 15 and such compensation, as he thinks fit, as the case may be, in accordance with the provisions with of the Act or the rules and regulations made thereunder; or

(ii) not liable to 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;

(I) 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.

CHAPTER-IX
BUDGET AND REPORT

38. Budget, accounts and audit.- (1) At the end of the financial year of every year, the Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in Form ‘O’.

(2) The Authority shall preserve the accounts and other relevant records prepared under sub-rule (1) for a minimum period of five years.

(3) The accounts and other relevant records under sub-rule (1) shall be signed by the Chairperson, Members, Secretary and the officer incharge of Finance and Accounts.

(4) The accounts of the Authority and the audit report shall, as soon as possible, be submitted to the State Government for laying before the State Legislature.

39. Annual Report.- (1) The Authority shall prepare its annual report in Form ‘P’.

(2) The Authority may also include in the Annual Report such other matters as deemed fit by the Authority for reporting to the State Government.

(3) The annual report shall, after adoption at a meeting of the Authority and signed by the Chairperson and Members and authenticated by affixing the common seal of the Authority, with requisite number of copies thereof, be submitted to the State Government within a period of one hundred and eighty days immediately following the close of the year for which it has been prepared.

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