Section 781

Amendment status not verified — confirm the current text below against the official source.

Essentiality Certificate.- A promoter who needs to arrange land for any project from private land owners shall have to obtain essentiality certificate from the Government. 78m. No Objection Certificate.- In case the intended area of development falls outside Town and Country Planning areas, the promoter concerned shall be required to obtain No Objection Certificate from Director before applying for essentiality certificate. Carrying on business after cancellation Audit Maintenance of accounts and records Periodical returns Inspection Essentiality Certificate No Objection Certificate 44 *CHAPTER-IX-B REGULATION OF PROMOTION, CONSTRUCTION, SALE, TRANSFER AND MANAGEMENT OF APARTMENTS, PLOTS AND PROPERTIES 78n. General liabilities of promoter. – (1) Notwithstanding anything contained in any other law for the time being in force, a promoter, who develops a colony or who constructs or intends to construct a building or apartments, shall, in all transactions with persons taking or intending to take a plot or an apartment on ownership basis, be liable to give or produce, or cause to be given or produced, the information and the documents mentioned hereinafter in this section. (2) A promoter who develops a colony or who constructs or intends to construct such building or apartments shall,- (a) make full and true disclosure of the nature of his title to the land on which such colony is developed or such building is constructed or is to be constructed, such title to the land having been duly certified by an Assistant Collector First Grade or Second Grade, as the case may be, after he has examined the transactions concerning it in the previous ten years; and if the land is owned by another person, the consent of the owner of such land to the development of the colony or construction of the buildings has been obtained: Provided that the promoter may be issued letter of intent on the basis of the consent of the landowner(s) but the licence shall only be granted when the promoter acquires the absolute and clear title of the land in his own name; (b) make full and true disclosure of all encumbrances on such land, including any right, title, interest or claim of any party in or over such land; (c) make available for inspection on seven days notice or on demand,- (i) of the layout of the colony and plan of development works to be executed in a colony as approved by the Director in the case of colony; and (ii) of the plan and specifications of the building built or to be built on the land as well as of the common areas and facilities and common services provided (including supply of electricity and water, sewerage and drainage system, lifts, fire-fighting equipment), such plans and specifications being in accordance with the provisions of the building regulations, and approved by the authority which is required so to do under any law for the time being in force, indicating thereon what parts of the building and the appurtenant areas are intended to be kept as common areas and facilities in the case of apartments: Provided that the number and sizes of the apartments shall conform to the building regulations, and the area of an apartment shall not exceed such limit as may be fixed by the Director; * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2013 (Act No.41 of 2013). General liabilities of promoter 45 (d) display or keep all the documents, plans and specifications or copies thereof referred to in clauses (a), (b) and (c) at the site and in his office and make them available for inspection to persons taking or intending to take a plot or an apartment and after the association is formed, he shall furnish the association a copy of these documents and of the sanctioned plan of the building; (e) disclose the nature of fixtures, fittings and amenities, including the provision for one or more lifts, provided or to be provided; (f) disclose on reasonable notice or on demand, if the promoter is himself the builder the prescribed particulars in respects of the design and the materials to be used in construction and, if the promoter is not himself the builder, disclose all agreements entered into by him with the architects and contractors regarding the design, materials and constructions of the building; (g) specify, in writing, the date by which possession of the plot or apartment is to be handed over and he shall hand over such possession accordingly; (h) except where there are no agreements about specific plots or apartments and allotment is made by draw of lots, prepare and maintain a list of plots or apartments with their numbers, the names and addresses of the parties who have taken or agreed to take plots or apartments, the price charged or agreed to be charged therefor, and the terms and conditions, if any, on which the plots or apartments are taken or agreed to be taken; (i) state in writing, the precise nature of and the terms and conditions governing the association to be constituted of persons who have taken or are to take the apartments; (j) not allow person to enter into possession until an occupation certificate required under any law is duly given by the appropriate authority under that law and no person shall take possession of an apartment until such occupation certificate is obtained; (k) make a full and true disclosure of all outgoings, including ground rent, if any, municipal or other local taxes, charges for water and electricity, revenue assessment, interest on mortgages or other encumbrances, if any; (l) give the estimated cost of the building and the apartments proposed to be constructed, or colony to be developed; and the manner in which escalation in such cost for valid reasons as may be approved by mutual agreement; (m) make a full and true disclosure of such other information and documents in such manner as may be prescribed; and (n) give on demand and on payment of reasonable charges true copies of such of the documents referred to in any of the clauses of this sub-section as may be prescribed. *(3) “Any promoter who has been granted licence under this Act, without reasonable cause, fails to comply with or contravenes the provisions of this section, sections 78p or 78q and rules or regulations made thereunder, shall, on conviction, be punished with imprisonment for a term which may extend to three years or with fine which may extend to five lacs rupees or with both.” * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 46 78o. Issue of advertisement or prospectus. – (1) No promoter shall issue an advertisement or prospectus, offering for sale of any apartment or plot or inviting persons who intend to take such apartments or plots to make advances or deposits, unless,- (a) the promoter holds a certificate of registration under sub-section (2) of section 78a and it is in force and has not been suspended or revoked and its number is mentioned in the advertisement or prospectus; (b) a copy of the advertisement or prospectus is filed in the office of the Director before its issue or publication; and (c) the promoter holds a valid licence under sub-section (3) of section 78p of this Act for the colony or the building, as the case may be. (2) The advertisement or prospectus issued under sub-section (1) shall disclose the area of the apartments or plots offered for sale, title to the land, extent and situation of land, the price payable and in the case of colonies, also layout of the colony, the plan regarding the development works to be executed in a colony and the number and the validity of the licence issued by the Director under sub-section (3) of section 78p and such other matters as may be prescribed. (3) The advertisement or prospectus shall be available for inspection at the office of the promoter and at the site where the building is being constructed or on the land being developed into a colony, along with the documents specified in this section and in section 78n. (4) When any person makes an advance or deposits on the faith of the advertisement or prospectus, and sustains any loss or damage by reason of any untrue statement included therein, he shall be compensated by,- (a) the promoter, if an individual; (b) every partner of the firm, if the promoter is a firm; (c) every person who is a director at the time of issue of the advertisement or prospectus, if the promoter is a company: Provided however, that such person shall not be liable if he proves that- (a) he withdrew his consent to become a director before the issue of the advertisement or prospectus; or (b) the advertisement or prospectus was issued without his knowledge or consent, and on becoming aware of its issue, he forthwith gave reasonable public notice that it was issued without his knowledge or consent; (c) after the issue of the advertisement or prospectus and before any agreement was entered into with buyers of plots or apartments, he, on becoming aware of any untrue statement therein, withdrew his consent and gave reasonable public notice of the withdrawal and of the reasons therefor. (5) When any advertisement or prospectus includes any untrue statement, every person who authorized its issue, shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to two years or with fine which shall not be less than five lacs rupees but which may extend to ten lacs rupees, or, with both, unless he proves that the statement was immaterial or that he had reason to believing and did upto the time of issue of the advertisement or prospectus believing that the statement was true. Issue of advertisement or prospectus 47 78p. Development of land into colony and construction of building.- (1) Any promoter, who desires to develop a land into a colony or intends to construct a building, shall make an application in the prescribed form alongwith the prescribed information and with the prescribed fee to the Director for grant of permission for the same and separate permission shall be required for each colony or building. (2) On receipt of the application under sub-section (1), the Director, after making enquiry into the title to the land, extent and situation of the land, capacity of the promoter to develop the colony, layout of the colony, conformity of the development of the colony with the neighboring areas, plan of development works to be executed in the colony and such other matters as it may deem fit, and after affording the applicant an opportunity of being heard and also taking into consideration the opinion of the prescribed authority, shall pass an order, in writing, recording reasons either granting or refusing to grant such permission. (3) Where an order is passed granting permission under sub-section (2), the Director shall grant a licence in the prescribed form, after the promoter has deposited *“development charges as may be prescribed” in the shape of bank draft and the promoter has undertaken to enter into an agreement in the prescribed form for carrying out completion of development works in accordance with the conditions of the licence so granted: Provided that the promoter shall not be entitled to any interest on the bank draft deposited under this sub-section. (4) The licence granted under sub-section (3) shall be valid for a period of *“five years” and may be renewed thereafter for a period of two years at a time on payment of prescribed fee by the Director. (5) The promoter shall enter into agreement undertaking to pay development charges for development works to be carried out by the Government or a local authority. (6) The Director shall determine the development charges and the time and the manner in which such charges referred to in sub-section (5) shall be paid to the Government or the local authority, as the case may be. (7) The promoter either himself or by any other person or entity shall develop infrastructure, amenities and common facilities such as schools, hospitals, community centers and other community buildings including street lighting on the land set apart for this purpose as per approved layout plan of the colony. He shall handover such land and assets to the local authority including Panchayati Raj Institutions and Urban Local Bodies in running order on such terms and conditions as may be fixed by the Director: Provided that if having regard to the amenities which exists or are proposed to be provided in the locality, the Director is of the opinion that it is not necessary to provide one or more of such amenities, he may exempt the promoter from providing such amenities, either wholly or in part, on such terms and conditions, as he may deem fit. Development of land into colony and construction of building * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 48 *“(8) The promoter shall reserve 10% plotted area of the project or 10% of the total apartments in Group Housing Colony, as the case may be, having above 30,000 square metres of area for Economically Weaker Sections and Low Income Groups of Society, but where the total area of the project is between 5,000 to 30,000 square metres, the promoter shall reserve either 10% plots or 10% apartments for such Economically Weaker Sections and Low Income Groups of Society or may pay such shelter fee in lieu of such plots or apartments as may be prescribed. *(8-a) The promoter shall reserve 15% of the plotted area or 15% of the total apartments of the project or 15% of the Luxurious Dwelling Units, as the case may be, to the Bonafide Himachalis or may pay such shelter fee only in case of Luxurious Dwelling Units as may be prescribed. *(8-b) The Director shall maintain a separate account of shelter fee which shall be utilized for the construction of houses for Economically Weaker Sections and Low Income Groups of Society. Explanation.- For the purpose of this section,- (i) “Group Housing” shall mean the Group Housing for more than eight dwelling units; (ii) “shelter fee” shall mean the fee levied and collected in lieu of the reservation of plots or apartments or Luxurious Dwelling Units, as the case may be, determined on the basis of rates specified in the rules; and (iii) “Luxurious Dwelling Units” shall mean the Duplex, Apartments or Cottages or Villas as by whatever name called;” (9) The promoter shall carry out all directions issued by the Director for ensuring due compliance of the execution of the layout and the development works therein and to permit the Director or any officer authorized by him to inspect such execution: Provided that the promoter shall fully provide essential infrastructure i.e. roads, foot-paths, water supply, sewerage and street lighting in running order before handing over the colony or apartments to the local authority or allottees, as the case may be. (10) The promoter shall be responsible for the maintenance and upkeep of all roads, open spaces, public parks and public health services until the date of transfer thereof in running order, free of cost to the local authority including Panchayati Raj Institutions and Urban Local Bodies or association. Where the basic amenities have been provided by the local authorities including Panchayati Raj Institutions and Urban Local Bodies, the promoter shall pay service charges to such local authorities as may be prescribed by such authorities till transfer. (11) In the event of the promoter contravening any provisions of this Act, or rules made thereunder or any conditions of the licence granted under sub-section (3), the Director may, after giving an opportunity of being heard, cancel the licence and forfeit such security as has been furnished by the promoter under sub-section (3). (12) When a licence is cancelled under sub-section (11), the Director shall cause to be carried out the development works at the risk of the promoter and after adjusting the amount received as bank draft, recover remaining charges as the Director incurs on the said development works from the promoter and the allottees in the manner as may be prescribed as arrear of land revenue. * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 49 (13) Notwithstanding anything contained in this Act, after development works have been carried out under sub-section (12), the Director may, with a view to enabling the promoter, to transfer the possession of, and the title to, the land to the allottees within a specified time, authorize the promoter by an order to receive the balance amount, if any, due from the allottees after adjustment of the amount which may have been recovered by the Director towards the cost of the development works and also transfer the possession of, and the title to, the land to the allottees within the specified time and if the promoter fails to do so, the Director shall on behalf of the promoter transfer the possession of, and the title to, the land to the allottees on receipt of the amount which was due from them. *“(14) The promoter may transfer the approved project to any other registered promoter with the prior approval of Director in such manner and on payment of such fee as may be prescribed. However, the registered promoter may get an approved project transferred in his name only after getting a valid licence in such manner, on payment of such fee, security and service charges as may be prescribed”. 78q. Agreement of sale.- (1) Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs building or apartments, all or some of which are to be taken or are taken on ownership basis or who intends to offer for sale of plots in a colony, shall, before he accepts any sum of money as advance payment or deposit, which shall not be more than twenty five per cent of the sale price, enter into a written agreement for sale with each of such persons who are to take or have taken such apartments or plots, as the case may be, and the agreement shall be in the prescribed form together with prescribed documents: Provided that if only a refundable application fee is collected from the applicant before draw of lots for allotment, such agreement shall be required only after such draw of lots. (2) The promoter shall not cancel unilaterally the agreement of sale entered into under sub-section (1) and if he has sufficient cause to cancel it, he shall give due notice to the other parties to the agreement and tender a refund of the full amount collected together with interest at the rate of twelve percent per annum. (3) The agreement to be prescribed under sub-section (1) shall contain inter alia the particulars as hereunder specified in clause (a) in respect of apartments and as specified in clause (b) in respect of plots in a colony and to such agreement shall be attached the copies of the documents specified in clause (c), - (a) the particulars in the case of apartment,- (i) the liability of promoter to construct the building according to the plans and Specifications approved by the authority which is required so to do under any law for the time being in force and the statement of the use for which the apartment is intended and restrictions on its use, if any; (ii) the price of the apartment and date by which its possession is to be handed over to the allottee with area including area of balconies; and. (iii) the nature, extent and description of the common areas and facilities and the limited common areas and facilities including the proportionate price of the common areas and facilities and intervals at which the installments thereof may be paid by the allottee of the apartment. The percentage of undivided interest in the common areas Agreement of sale * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 50 and facilities and in the limited common areas and facilities, if any, pertaining to the apartment agreed to be sold, such percentage shall be the ratio of the built-up area of the apartment to the total built-up area of all the apartments; (b) the particulars in the case of plots in a colony,- (i) the date by which the possession of the plot is to be handed over to allottee; and (ii) the price and area of the plot with statement of the use for which the plot is intended and restriction on its use, if any; (c) the copies of documents to be attached with the agreement,- (i) the certificate by an Assistant Collector First Grade or Second Grade, as the case may be, referred to in clause (a) of sub-section (2) of section 78n; (ii) certified copy from any relevant revenue record showing the nature of the title of the promoter to the plot or the land on which the building or apartment is constructed or is to be constructed; and (iii) the plans and specifications of the apartment as approved by the authority which is required so to do under any law for the time being in force. 78r. Maintenance of accounts by promoters.- The promoter shall obtain all requisite permissions and shall maintain proper account of payments received and expenses incurred and will show it to the Director as and when required. 78s. Responsibility for payment of charges till transfer.- A promoter shall, while he is in possession, and, where he collects from persons who have taken or are to take apartments or plots, sums for the payment of charges, even thereafter, pay all charges (including ground rent, municipal or other local taxes, charges for water or electricity, revenue assessment, interest on mortgages or other encumbrances, if any) until he transfers the property to the persons taking over the apartments or plots. Where any promoter fails to pay all or any of the charges collected by him from the persons who have taken over or are to take over apartments or plots, before transferring the property to the persons taking over the apartments or plots, the promoter shall continue to be liable, even after the transfer of the property, to pay such charges and penal charges, if any, to the authority or person to whom they are payable and be responsible for any legal proceedings which may be taken therefor by such authority or person. 78t. No alterations and rectification of defects.- *“(1) After the approval of the project i.e. grant of licence under sub- section (3) of section 78 p of this Act, the promoter shall not make any addition or alteration in the project, without the consent of the buyer and without the prior approval of competent authority in the prescribed manner.” Maintenance of accounts by promoters Responsibility for payment of charges till transfer No alterations and rectification of defects * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 51 (2) Subject to the provisions of sub-section (1), the building shall be constructed and completed in accordance with the plans and specifications aforesaid; and if any defect in the building or material used, or if any unauthorized change in the construction is brought to the notice of the promoter *“by the buyer” within a period of one year from the date of handing over possession, it shall wherever possible be rectified by the promoter without further charge to the persons who have agreed to take the apartments, and in other cases such persons shall be entitled to receive reasonable compensation for such defects or change and where there is a dispute as regards any defect in the building or material used or any unauthorized change in the construction, or as to whether it is reasonably possible for the promoter to rectify any such defect or change, or as regards the amount of reasonable compensation payable in respect of any such defect or change which cannot be or is not rectified by the promoter, the matter shall, on payment of such fee as may be prescribed and within a period of three years from the date of handing over possession, be referred for decision to the Director and the Director shall, after giving an opportunity of being heard to the parties and after making further enquiry, if any, as it may deem fit, pass order, which shall be final. 78u. Refund of amount.–If the promoter,- (a) fails to give possession in accordance with the terms of the agreement reached with the buyers of a plot or an apartment duly completed by the date specified or any further date agreed to by the parties; or (b) does not give possession by the date specified or further date agreed, the promoter shall be liable on demand but without prejudice to any other penalties to which he may be liable, to refund the amounts already received by him in respect of that plot or apartments with simple interest at the rate of twelve percent per annum from the date the promoter received the sums till the date the amounts and interest thereon is refunded and the amounts and the interest shall be a charge on the land on which a plot is to be developed or a building is or was to be constructed and the construction, if any, thereon shall be subject to any prior encumbrances. 78v. No mortgage without consent.- (l) No promoter shall, after he executes an agreement to sell any apartment or plot, mortgage or create a charge on such apartment or the land or the plot, without the previous consent of the person who takes or agrees to take such apartment or plot, and if any such mortgage or charge is made or created without such previous consent, it shall not affect the right and interest of such person. (2) If a promoter has executed an agreement of sale of an apartment or a plot with a buyer and has not yet received from him all the amounts agreed to be paid, the buyer shall not mortgage or create a charge against such apartment or plot without the previous consent of the promoter: Provided that the promoter shall not withhold consent if the mortgage or charge is for the purpose of obtaining finance for the payment of amounts due to the promoter. * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). No mortgage without consent Refund of amount 52 78w. Completion and occupation certificate.- (1) It shall be the responsibility of the promoter,- (i) in the case of apartments, to obtain from the authority required to do so under any law completion and occupation certificate *“in respect of complete project or part thereof” for the building and if a promoter, within a reasonable time, after the construction of the building, does not apply for an occupation certificate from such authority, the allottee of an apartment may apply for an occupation certificate from the said authority; and (ii) in the case of a colony, to obtain completion certificate from the Director to the effect that the development works have been completed in all respects as per terms and conditions of the licence granted to him under section 78p. (2) The authority referred to in sub-section (1) shall after satisfying itself about the agreement of sale between the promoter and the allottee, and the compliance of the building regulations and all other formalities,*“and development work carried out by the promoter, issue an occupation certificate for complete project or part thereof”. 78x. Promoter to execute documents.- After the completion or occupation certificate is obtained under section 78w, the promoter shall submit a copy thereof to the Director and thereafter he shall take all necessary steps to complete his title and convey the exclusive ownership of the apartment or plot containing such particulars as may be prescribed and the undivided interest in the common areas and facilities appurtenant to such apartment or plot to the person in whose favour he has executed an agreement of sale of that apartment or plot, and execute a conveyance deed of apartment or plot containing such particulars as may be prescribed and all other relevant documents therefor in accordance with such agreement, within three months from the date of giving possession of the apartment or plot and also deliver all documents of title relating to the property which may be in his possession or power and the promoter shall not reserve any right in the property except to the extent of apartments or plots which he is taking up in his own name and apartments or plots which are meant for sale but are still unsold. 78y. Enforcement of registration of conveyance.- (l) If the promoter without sufficient cause fails to execute the conveyance deed of apartment or plot and other relevant documents within three months in terms of the provisions of section 78x, the person in possession of the apartment or plot in pursuance of the agreement of sale may make an application, in writing, in the prescribed form to the Director for a certificate to be produced before the concerned registering officer for enforcing the registration of the transfer and on receipt of such application and after making such enquiry as may be necessary and satisfying itself that occupation or completion certificate has been obtained from the authority required to do so under any law and the person in possession has done what he was required to do under the agreement of sale, the Director shall issue a certificate to the registering officer that it is a fit case for enforcing registration of the conveyance deed and direct the person who has taken the apartment or plot to present the conveyance deed of apartment or plot though not executed by the promoter for unilateral execution of registration. Enforcement of registration of conveyance Completion and occupation certificate Promoter to execute documents * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 53 (2) After the conveyance deed of apartment or plot alongwith the certificate issued by the Director under sub-section (1) is presented for registration, the registering officer shall cause a summons to be issued to the promoter and if the promoter fails to appear in compliance with the summons so issued, the execution of the instrument shall be deemed to be admitted by him and the registering officer shall proceed to register the instrument and if the promoter appears but denies execution of the conveyance deed, the registering officer, after giving him a reasonable opportunity of being heard, if satisfied that the promoter has failed to execute the conveyance deed without sufficient cause, shall proceed to register the same. (3) If the promoter fails to execute a written agreement of sale as required under section 78q, or fails to execute the conveyance deed of apartments or plots and other relevant documents as specified in sub-section (1), within three months, the Director may, either on a complaint or suomoto, impose for each plot or apartment for which there is a default, a penalty upto a maximum of five percent of the price of the plot or the apartment or fifty thousand rupees, whichever is greater, and further minimum penalty of five hundred rupees for each day for which the default continues for each plot or apartment, and such penalty may be recovered against the bank draft deposited under sub-section (3) of section 78p : Provided that the penalty if not received fully against the bank draft, the balance shall be recoverable as arrear of land revenue. (4) The penalty imposed under sub-section (3) shall be in addition to any action taken under the Indian Stamp Act, 1899, (2 of 1899) or the Registration Act, 1908 (16 of 1908) and if a penalty is imposed under the provisions of any of these Acts, the promoter shall not be liable to penalty for the same offence under this Act or under any other law governing the apartment ownership. 78z. Promoter's responsibility for essential services.- (1) No promoter and no person who is responsible for the management and maintenance of a building or apartments, shall without just and sufficient cause, either by himself or through any person, cut off, withhold, curtail or reduce, any essential supply or service enjoyed in respect of such apartment or plot by the person who has taken or agreed to take an apartment or plot or by any person in occupation thereof through or under him. (2) If there is a contravention of the provisions of sub-section (1), the person who has taken or agreed to take the apartment or plot or the occupier thereof may make an application to the Director for a direction to restore such supply or service. (3) If the Director on enquiry finds that the person referred to in sub-section (2) has been in enjoyment of the essential supply or service and that it was cut off or withheld or curtailed or reduced without just and sufficient cause, the Director shall make an order directing the restoration of such supply or service before a date to be specified in the order. (4) If the supply or service is not restored before the date specified under sub-section (3), the promoter or the person responsible for the management and maintenance of the building or apartment or plot shall be liable, upon a further direction by the Director to that effect, to a penalty which may extend to one thousand rupees for each day during which the default continues thereafter. Promoter’s responsibility for essential services 2 of 1899 16 of 1908 54 (5) Notwithstanding anything contained in any law for the time being in force, the Director shall have jurisdiction to decide any application made under sub-section (2) and no other court shall have jurisdiction to entertain such application and no appeal shall lie from any order made on such application. (6) Any promoter or person responsible for the management and maintenance of building or apartment or plot, who contravenes the provisions of sub-section (1), shall on conviction be punished with imprisonment for a term which may extend to three months or with fine, which may extend to fifty thousand rupees or with both. (7) The offence under sub-section (6) shall be cognizable, and shall not be triable by any court inferior to that of Judicial Magistrate of the First Class. Explanation-I- In this section, "essential supply or service" includes the supply of water, electricity, lights in passages and on staircase, and lifts and conservancy or sanitary service. Explanation-II-For the purposes of this section withholding any essential supply or service shall include acts or omissions attributable to the promoter or the person responsible for the management and maintenance of the building or apartment, on account of which the essential supply of service is cut off by the local authority or any other authority. 78za. Regulation of property.- (l) A promoter who enters into a transaction for the transfer relating to a property shall,- (a) make full and true disclosure of the nature of his title to the property indicating clearly that his title to property has been duly certified by an Assistant Collector First Grade or Second Grade, as the case may be, after he has examined transactions concerning it in the previous ten years; (b) make full and true disclosure of all encumbrances on such property, including any right, title, interest or claim of any party in or over such property; (c) in case the property is land held on lease, produce consent from the lessee for the transaction; (d) in case the property is land, subject to the provisions of the Urban Land (Ceiling and Regulation) Act, 1976; produce clearance from the competent authority under that Act; (e) make full and true disclosure of any reservations, in the development plan framed under any law for the time being in force or restrictions on the use to which the property may be put and any liability to carry out any development works; (f) specify, in writing, the date by which possession of the property is to be handed over; (g) make full and true disclosure of all charges, including ground rent, if any, municipal or other local taxes, revenue assessment, interest on any mortgage or other encumbrance, development charges or charges for maintenance and Regulation of property 33 of 1976 55 upkeep of roads, drainage, sewerage, water supply, electricity, layout and constructed by the Government or any local authority. (2) No person shall issue a prospectus or advertisement offering for sale any property, unless the prospectus or advertisement indicates the place and time the documents and certificates relating to the matters specified in sub-section (1) are available for inspection. (3) The provisions of sub-sections (4) and (5) of section 780 shall apply mutatis mutandis for mis-statements in the prospectus or advertisement issued under sub- section (2) of this section. (4) The provisions of sections 78r, 78x and 78y shall apply mutatis-mutandis to a transaction of property made under this section. 78zb. General liabilities of allottee.- (1) Every allottee who has executed an agreement of sale to take an apartment or a plot under section 78q or any property under section 78za shall pay at the proper time and place, the price, the proportionate share of the municipal taxes, water and electricity charges, ground rent, if any, and other charges in accordance with the agreement of sale. (2) Any person who has executed an agreement of sale of an apartment or plot or other property and who, without reasonable excuse, fails to comply with or contravenes the provisions of sub-section (1) shall, on conviction, be punished with fine which may extend to one percent of the price of the apartment or plot or property, as the case may be, or one thousand rupees, whichever is higher. 78zc. Restriction on structures in a colony.- Every person, erecting or re-erecting any structure in a colony in respect whereof a licence has been obtained under sub-section (3) of section 78p, shall comply with such conditions regarding use of land, layout plan, zoning regulations, site coverage, height of building, set back lines, structural and sanitary requirements, architectural control, design of buildings and material to be used in erection thereof as may be prescribed. 78zd. Constitution of Development Fund.- *“(1) Every promoter to whom a licence has been granted under section 78p to develop a colony shall deposit the service charges as may be prescribed.” (2) The amount of service charges levied under sub-section (1) if not paid within the stipulated period, shall be recoverable as arrears of land revenue or the Director may cancel his licence after giving him an opportunity of being heard. (3) The amount of service charges deposited by the promoter under sub-section (1) or recovered under sub-section (2) shall constitute a fund to be called “the Development Fund” (hereinafter referred to as the “Fund”) and shall vest *“with the Director”. (4) The fund shall be utilized *“by the Director” for the benefit of the allottees, for development of the colonies, to promote research and development in town and country and urban affairs and for such other similar purposes as may be prescribed. (5) The State Government shall publish annually in the Official Gazette the report of the activities financed from the Fund and the statement of accounts. Constitution of Development Fund Restriction on structures in a colony General liabilities of allottee * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). 56 *“78ze. Exemptions – Save as provided under section 78 zd of this Act, nothing as contained in CHAPTER IX-A and IX-B shall apply, if the promoter is - (a) a local authority or statutory body constituted for the development of land or housing or an authority constituted under section 40 or section 67 of this Act; (b) a company or a body created for development of land or housing or promotion of industry wholly owned and controlled by the State Government or the Central Government; and (c) any project of public interest or public utility which is to be transferred to the Government after certain period of time: Provided that if the authorities as specified above, intends to carry out any development of land under section 29 of the Act, shall make an application in writing to the Director for seeking change of land use and for planning permission. *“78zf. Penalty for contravention of the provisions of CHAPTER IX-A and CHAPTER IX-B of the Act.- (1) Save as provided in sections 38 and 39 of this Act, any person, other than a promoter, who constructs colony or building in contravention of the provisions of CHAPTER IX-A and CHAPTER IX-B of this Act and rules or regulations made thereunder, shall, on conviction, be punished with imprisonment which may extend to seven years or with fine which may extend to rupees ten lac or with both. (2) The fine imposed under this Act, shall be recovered as arrears of land revenue and out of the fine so recovered, the court may award such amount as he deems fit to the person from whom the advance or deposit was obtained by the promoter or the estate agent, as the case may be.” CHAPTER-X MISCELLANEOUS 79.(1)Without prejudice to any other provisions of this Act the Director or any authority established under this Act may enter into or upon, or cause to be entered into or upon, any land or building for the purpose of the preparation of plan or scheme under this Act for- (a) making any measurement or survey or taking levels of such land or buildings; (b) setting out or making boundaries and intended lines of development; (c) making such levels, boundaries and lines by placing marks and cutting trenches; (d) examining works under construction and ascertaining the course of sewers and drains; (e) ascertaining whether any land is being or has been developed in contravention of any provision of this Act or the rules or the regulations made there under: Penalty for contravention of the provision of Chapter IX-A and Chapter IX-B of the Act Exemptions * As amended vide Himachal Pradesh Town and Country Planning (Amendment) Act, 2015 (Act No.14 of 2015). Right of entry 57 Provided that- (i) in the case of any building used as a dwelling house or upon any enclosed part of garden attached to such a buildings, no such entry shall be made except between the hours of sunrise and sunset or without giving its occupier at least 24 hours notice in writing of the intention to enter; (ii) sufficient opportunity shall in every instance be given to enable women (if any) to withdraw from such land or buildings; (iii) due regard shall always be had so far may be compatible with the exigencies of the purpose for which the entry is made, to the social and religious usages of the occupants of the land or building entered. (2) Any person who obstructs the entry of an officer empowered or duly authorized under this section to enter into or upon any land or building or molests such officer after such entry shall, on conviction, be punished with simple imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees, or with both.