Punjab Apartment and Property Regulation Act, 1995.

Punjab Apartment and Property Regulation Act, 1995. 

(Punjab Act No. 14 of 1995) 

 
An 

Act 

No. 17-Leg./95.- The following Act of the Legislature of the State of Punjab received the assent of the 

President of India on the 2
nd

 August, 1995, and hereby published for general information:- 

 

to regulate the promotion of the construction, sale, transfer and management of apartments on 

ownership basis, to regulate colonies and property transactions and to provide for registration of 

promoters and estate agents and enforcement of obligations on promoters and estate agents and for 

matters connected therewith or incidental thereto. 

Be it enacted by the Legislature of the State of Punjab in the Forty-Sixth Year of the Republic of India 

as follows:- 

Part I 

CHAPTER I 

Preliminary 

 

1. Short title, extent and commencement. - (i) This Act may be called the Punjab Apartment and 

Property Regulation Act, 1995. 

(2) It shall extend to the whole of the State of Punjab. 

2
(3) This Act shall come into force on such date as the State Government may by notification in the 

official Gazette, appoint and different dates may be appointed for different areas of the State. 

2. Definitions. - In this Act, unless the context otherwise requires,- 

(a) "advertisement" means any board, device, letter, model, notice, placard, sign board, or 

representation in any manner whatsoever, wholly or in part, intended for being announced or 

displayed so as to make it generally known; 

(b) "allottee" in relation to an apartment or plot, means the person to whom such apartment or 

plot has been allotted, sold or otherwise transferred by the promoter; 

(c) "apartment" whether called block, chamber, dwelling unit, flat, lot, premises, suite, tenement, 

unit or by any other name, means a separate and self-contained part of any property, including 

one or more rooms or enclosed spaces, located on one or more floors, or, any part or parts 

thereof, in a building, or in a plot of land, used or intended to be used for residence, office, 

shop, showroom, or godown or for carrying on any business, industry, occupation, profession 

or trade, or for any other type of independent use ancillary to the purpose specified above and 

with a direct exit to a public street, road or highway or to a common area leading to such 

street, road or highway, and includes any garage or room whether or not adjacent to the 

building in which such apartment is located, provided by the promoter for the use by the 

Published in Punjab GAZ. (Extra) LS Part-1, August 9, 1995 

Act came into force w.e.f. 15.10.1995 



allottee for parking any vehicle or, as the case may be, for the residence of any domestic 

servant employed in such apartment; 

[(cc) "apartment building" means a building constructed on any land, containing five or more 

apartments or two or more buildings with a total of five or more apartments or any existing 

building converted into five or more apartments;] 

Explanation. - (1) If a basement, cellar, garage, room, shop or storage space is sold separately from 

any apartment, it shall be treated as an independent apartment and not as part of any other 

apartment or of the common areas and facilities; 

Explanation. - (2) Notwithstanding that provision is made for sanitary, washing, bathing or other 

conveniences as common to two or more apartments, the apartments shall be deemed to be separate 

and self-contained; 

(d) "apartment number" means the number, letter or combination thereof, designating an 

apartment; 

(e) "apartment owner" means the person owning an apartment and an undivided interest in the 

common areas and facilities appurtenant to such apartment in the percentage specified in the 

conveyance deed of apartment; 

Explanation. - A member of a co-operative housing society of the tenant co-partnership type, or an 

allottee under a hire-purchase agreement, will be deemed to be an owner, entitled to membership of 

the association; 

(f) "association" means an association consisting of all the apartment owners in a building acting 

as a group in accordance with the bye-laws made by the association under the Punjab 

Apartment Ownership Act, 1995 [and includes or an association formed under section 17-A of 

this Act;] 

[(g) "building" means any construction or part of a construction which is intended to be used for 

residential, commercial, industrial or other purposes, whether in actual use or not, and includes 

any out-house, stable, cattle shed and garage;] 

(h) "building regulations" means the rules or regulations or bye-laws made under any law for the 

time being in force for the erection or re-erection of buildings or parts thereof and for the 

purpose of this Act includes Zoning Regulations framed under any law for the time being in 

force; 

[(i) "colony" means an area of land not less than one thousand square meters divided or 

proposed to be divided by way of registered sale or through lease or transfer of physical 

possession of plots or apartment building for residential, commercial or industrial purposes 

including cyber city/cyber park, construction of flats in the form of group housing or for 

construction of integrated commercial complexes but does not include any area of abadi deh 

of a village falling inside its Lal Lakir or phirny or land divided or proposed to be divided - 

(i) for the purpose of agriculture: 

Inserted vide Punjab Act No. 21 of  2014, w.e.f 27.08.2014 



Provided that area proposed to be divided is not less than one thousand metres; or 

(ii) by a company, institution or factory for creation of housing for its employees provided 

that there is no profit-motive nor ownership of the houses is transferred to the 

employees and their rights to accommodation are restricted to the period of their 

employment with company, institution or factory;] 

(j) "common areas and facilities", in relation to a building, means all parts of the building or the 

land on which it is located and all easements, rights and appurtenances belonging to the land 

or the building, which are neither in the exclusive possession of an apartment owner in terms 

of his conveyance deed of apartment, nor are handed over or intended to be handed over to 

local authority or other public service agency and shall include the limited common areas and 

facilities; 

(k) "common expenses" means,- 

(i) all sums lawfully assessed against the apartment owners by the association for meeting 

the expenses of administration, maintenance, repair or replacement of the common 

areas and facilities; 

(ii) expenses, declared by the provisions of this Act or by the bye-laws made by the 

association under the Punjab Apartment Ownership Act, 1995, or agreed upon by the 

association, as common expenses; 

(iii) the Government and municipal taxes, including ground rent and property tax, which is 

not assessed separately for each apartment; 

(l) "competent authority" means any person or authority appointed by the State Government, by 

notification in the Official Gazette, to exercise and perform all or any of the powers and 

functions of the competent authority under this Act and the rules made thereunder; 

(m) "development charges" means the cost of external development works and internal 

development works; 

(n) "development works" means internal development works and external development works; 

(o) "estate agent" means a person who negotiates or acts on behalf of one person in a 

transaction of transfer of his property, whether by way of sale, lease, licence, mortgage or 

otherwise, with another person, and receives remuneration for his services in the form of 

commission, and includes also a person who introduces to each other for negotiation such 

persons or their agents; 

Explanation. - The person who acts as described in clause (o) shall be deemed to be an estate 

agent, even if he styles himself as a land or housing agent, property or real estate consultant, 

property dealer, realtor, or by any other name; 

(p) "external development works" includes roads and road systems, water supply, sewerage and 

drainage systems, electric supply or any other work which may have to be executed in the 

periphery of, or outside, a colony for its benefit; 



(q) "Government" or "State Government" means the Government of the State of Punjab; 

[(r) "internal development works" means roads, parks, footpaths, water supply, sewers, drains, 

tree planting, street lighting, provision for community buildings and for treatment and disposal 

of sewage and sullage water, storm water drainage, rain water harvesting, domestic solid 

waste collection centre, electric line upto individual plots or any other work in a colony 

necessary for its proper development, as may be specified by the competent authority; and] 

(s) "joint family" means a Hindu undivided family and in the case of other person, a group the 

members of which are by custom joint in possession or residence; 

(t) "land" means a portion of the surface of the earth, comprising the ground or soil and every 

thing under it or over it, and things which are attached to the earth, such as buildings, 

structures and trees, things which are permanently fastened to the earth or to things attached 

to the earth, easements, rights and appurtenances belonging to them and benefits arising out 

of them and includes the sites of villages, towns and cities; 

(u) "limited common areas and facilities" means those common areas and facilities which are 

designated in writing by the promoter before the allotment, sale or transfer of any apartment, 

as reserved for use of certain apartments to the exclusion of the other apartments; 

(v) "local authority" means a corporation constituted under section 4 of the Punjab Municipal 

Corporation Act, 1976 (Punjab Act No. 42 of 1976) or a committee constituted under section 

12 of the Punjab Municipal Act, 1911 (Punjab Act No. 3 of 1911) or any other authority notified 

by the State Government for the purposes of this Act; 

(w) "person" includes a company, firm, co-operative society, joint family and an incorporated body 

of persons; 

(x) "prescribed" means prescribed by rules made under this Act; 

[(y) "promoter" means the person, – 

(a) who is the owner of land, on which a colony is developed; 

(b) builder, who constructs or causes to be constructed an apartment building consisting of 

apartments, or converts an existing building or a part thereof into apartments, for the purpose 

of selling all or some of the apartments to other persons, and includes his assigns; 

(c) colonizer, who develops land into a colony, whether or not he also constructs structures on 

any of the plots, for the purpose of selling to other persons, all or some of the plots, whether 

open or with structures thereon; 

(d) property dealer or estate agent, who offered or sells apartments or plots on behalf of the land 

owner or builder or colonizer or any other person, by whatever name he may be called; 

(e) who claims to be acting as the holder of a power of attorney from the owner of the land on 

which the building is constructed or a colony is developed; and 

(f) who styles himself as a developer, or by any other name. 

1. Substituted vide Punjab Act No. 21 of 2014, w.e.f  27.8.2014 

2. Substituted by Punjab Act No. 21 of 2014, w.e.f 27.8.2014 

3. Substituted by ibid. 



Explanation. - Any development authority and any other public body so notified by the State 

Government are deemed to be promoter in respect of allottees of, - 

(i) building constructed by them on land owned by them or placed at their disposal by the 

State Government; or 

(ii) plots owned by them or placed at their disposal by the State Government;] 

(z) "property" means the land, the building, all improvements and structures thereon, and all 

easements, rights and appurtenances belonging thereto, and includes every type of right and 

interest in land which a person can have to the exclusion of other persons, such as 

possession, use and enjoyment free from interference, right of disposition, franchises and 

hereditaments;  

(za) "section" means a section of this Act [; and] 

[(zb) "unauthorized colony" means a colony which has been developed in contravention with the 

provisions of the Act and the rules made thereunder.] 

 

CHAPTER II 

Regulation of Promotion of Construction, Sale, Transfer and Management of 
Apartments, Plots and Properties 

 

3. General liabilities of promoter. - (1) Notwithstanding anything in any other law for the time being 

in the force, a promoter, who develops a colony or who constructs or intends to construct a building of 

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 of 

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 [officer not below the rank of Assistant Collector Grade-II 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 building has been obtained; 

(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 duly certified by an authority not below the 

rank of Assistant Collector Grade-II]; 

(c) give inspection on seven days' notice or demand,- 

(i) of the layout of the colony and plan of development works to be executed in a colony as 

approved by the prescribed authority in the case of a colony; and 

 

1. Omitted vide Punjab Act No. 21 of  2014 w.e.f 27.08.2014 

2. Substituted by ibid. 

3. Substituted for words “over such land” vide Punjab Act No. 21 of 2014, w.e.f. 27.08.2014 



(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 systems, 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 such building regulations, and 

the area of an apartment shall not exceed such limit as may be fixed by the competent authority; 

(d) display or keep all the documents, plans and specifications or copies thereof referred to in 

clauses (a), (b) and (c) of this sub-section 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 demand, if the promoter is himself the builder, the prescribed 

particulars as respects the designs and the material 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 construction 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: 

[Provided that the Government may by notification direct, - 

(i) in the case of residential apartments, ten percent of the total apartments be reserved for 

economically weaker section of society; and 

(ii) in the case of colony, five percent area of the gross area of the project, be reserved for plots to 

be allotted to the persons belonging to economically weaker sections of society, in such 

manner and on terms and conditions, as may be specified.] 

(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 persons 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 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 may 

be approved by mutual agreement; 

(m) make a full 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. 

4. Issuing of advertisement or prospectus. - [(1) No promoter shall develop any land into a colony 

or offer plots for sale or transfer or construct apartments or issue any advertisement or prospects for 

such sale inviting persons to make advances or deposits for booking, unless, - 

(a) he obtains licence under sub-section (3) of section 5, which is in force and has not been 

suspended or revoked and its number is mentioned in the advertisement or prospects ;] 

(b) a copy of the advertisement or prospectus is filed in the office of the competent authority 

before its issue or publication. 

(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 competent authority 

under sub-section (3) of section 5, 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, 

alongwith the documents specified in this section and in section 3. 

(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,- 

 
1 

Substituted for the words “upto one year or with fine which may extent upto five thousand rupees” vide Punjab Act No. 21 

of 2014 w.e.f. 27.08.2014. 
2
 Section 5 substituted vide Punjab Act No. 21 of  2014 w.e.f. 27.08.2014. 



(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; or 

(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 

authorised its issue, shall be punished with imprisonment for a term which may extend [upto three 

years or with fine which may extend upto five lac rupees], or, with both, unless he proves that the 

statement was immaterial or that he had reason to believe and did upto the time of issue of the 

advertisement or prospectus believe that the statement was true. 

[5. Development of land into colony. - (1) Any promoter, who desires to develop a land into a 

colony having the prescribed qualifications, shall make an application in the prescribed form alongwith 

his title of minimum twenty five per cent of project land and irrevocable consent for the rest of land, if it 

is owned by other persons, permission for conversion of land use from the competent authority and 

the prescribed information, with the prescribed fee and charges, to the competent authority for grant 

of permission for the same and separate permission shall be necessary for each colony. 

(2) On receipt of the application under sub-section (1), the competent authority, after making enquiry 

into the title of 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 in case of apartment buildings, design, 

specification of material to be used, common areas and facilities to be provided, structural safety and 

fire safety and such other matters as it may specify, 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 competent authority shall 

grant a license in the prescribed form after the promoter has complied with the following conditions, 

namely: - 

(i) the promoter shall acquire the title of land not owned by him, within the time period given in the 

terms and conditions of the licence, and shall not make any sale or transfer of land which is 

not under his title; 

(ii) furnish a bank guarantee equal to thirty five percent of the estimated cost of the development 

works certified by the competent authority, or mortgage plots falling in the same project equal 

to thirty five percent value of estimated cost of development by equitable mortgage deed to the 

satisfaction of the competent authority in the manner prescribed, which shall be marked on the 

layout plan and entered in the revenue record; 



(iii) has entered into an agreement with the competent authority in the prescribed form for 

carrying out the development works in accordance with the conditions of the licence; 

(iv) has paid, subject to the provisions of sub-section (6), the Change of Land Use Charges, 

External Development Charges and such other charges, as may be notified by the 

Government from time to time. 

(4) In case, a promoter intends to revise the layout plan or zoning plan of the approved colony or 

building plan, he shall be required to obtain a revised permission, subject to fulfilment of all liabilities 

created due to prior permission, on payment of such charges and such fee and on such terms and 

conditions, as may be specified after giving due notice to the plot or apartment holders. However, the 

said revision shall not extend the period of validity of the license granted under sub-section (3). 

(5) The license granted under sub-section (3), shall be valid for a period of five years and shall be 

renewable for a further period of two years on payment of such fee and charges, and on such terms 

and conditions, as may be specified by the competent authority. 

(6) The promoter shall enter into agreement give undertaking to pay development charges for external 

development works carried out or to be carried out by the Government or a local authority. 

(7) The State Government shall determine the development charges and the time within which such 

development charges as referred to in subsection (6), shall be paid to the State Government or to 

such authority, as may be notified by the State Government. 

(8) The Government may allow payment of external development charges and other charges 

mentioned in such installments, as may be notified by it from time to time. In such case, the first 

installment shall be deposited before the grant of licence and the promoter shall furnish and give 

undertaking to pay the balance installments as per notified schedule supported by such additional 

bank guarantee or mortgage of such additional property, as may be necessary to secure payment of 

the balance installments. 

(9) The promoter shall carry out and complete the development of the land in accordance with the 

provisions of the Punjab Regional and Town Planning and Development Act, 1995 (Punjab Act 11 of 

1995). 

(10) The promoter shall construct or get constructed at his own cost, schools, hospitals, parks, 

community centers and other community buildings, on the land set apart for this purpose or promoter 

may sell or transfer land meant for schools and hospital etc. on such terms and conditions, as may be 

specified by the Government. Further, the area under roads, open spaces, parks and other public 

utilities shall be transferred to the local authority before issue of completion certificate. 

(11) The promoter shall, reserve five percent area of the gross project area in the case of colony and 

ten percent of the apartments in the case of apartments in the manner, as may be specified by the 

Government for reservation and disposal of such plots/apartments for economically weaker section of 

the society. 

(12) The promoter shall carry out all directions issued by the competent authority for ensuring due 

compliance of the execution of the layout and the development works therein and to permit the 

competent authority or any officer authorized by it to inspect such execution. 



(13) The promoter shall be responsible for the maintenance and upkeep of all roads, open spaces, 

public parks and public health services for a period of five years from the date of issue of completion 

certificate or till the date of transfer the same, free of cost to the State Government or the local 

authority: 

Provided that after the completion of development works in the colony, in all respects, the competent 

authority, may allow the promoter to hand over the maintenance of the infrastructure and services 

mentioned in this sub-section to an association of residents formed under section 17-A, which shall be 

responsible for management, maintenance, upkeep of common areas, infrastructure and common 

services of the colony. 

(14) 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 competent authority may, after giving 

an opportunity of being heard, suspend or cancel the licence and enforce the bank guarantee or 

mortgage property furnished by the promoter under subsection (3). 

(15) When a licence is suspended or cancelled under sub-section (14), the competent authority may 

itself carry out or cause to be carried out the development works, and after adjusting the amount 

received as a result of enforcement of bank guarantee or by disposal of mortgaged property, recover 

such charges, as the competent authority may have to incur on the said development works from the 

promoter and the allottees in the manner prescribed as arrears of land revenue. 

(16) The liability of the promoter for payment of development charges referred to in sub-section (15), 

shall not exceed the amount the promoter has actually recovered from the allottees less the amount 

actually spent on such development works, and that of the allottees shall not exceed the amount, 

which they would have to pay to the promoter towards the expenses of the said development works 

under the terms and conditions of the agreement of the sale or transfer entered into between them: 

Provided that the competent authority may, recover from the allottees with their consent, an amount in 

excess or what may be admissible under the aforesaid terms of agreement of sale or transfer. 

(17) Notwithstanding anything contained in this Act, after development works have been carried out 

under sub-section (15), the competent authority may, with a view to enabling the promoter, to transfer 

the possession of, and the title of, 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 competent authority towards the cost of the 

development works and also transfer the possession of, and the title of, the land to the allottees within 

aforesaid time and if the promoter fails to do so, the competent authority shall on behalf of the 

promoter transfer the possession of, and title of, the land to the allottees on receipt of the amount 

which was due from them. 

(18) After meeting the expenses on development works under subsection (15), the balance amount 

shall be payable to the promoter.] 

 

6. Contents of 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 a building of apartments, all or 

some of which are to be taken or are taken on ownership basis, or who intends to offer for sale 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 and shall be 

registered under the Registration Act, 1908 (Central Act No. 16 of 1908) : 

Provided that, if only a refundable application fee is collected from the applicant before draw of lots for 

allotment, such agreement will 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 as may 

be prescribed. 

(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) if the building is to be constructed, the liability of the 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; 

(ii) the date by which the possession of the apartment is to be handed over to the allottee; 

(iii) the area of the apartment including the area of the balconies which should be shown 

separately; 

(iv) the price of the apartment including the proportionate price of the common areas and 

facilities which should be shown separately, to be paid by the allottee of the apartment 

and the intervals at which the instalments thereof may be paid; 

(v) the precise nature of the association to be constituted of the persons who have taken or 

are to take the apartments; 

(vi) the nature, extent and description of the common areas and facilities and the limited 

common areas and facilities, if any; 

(vii) the percentage of undivided interest in the common areas and facilities and in the 

limited common areas and facilities, if any, appertaining 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; 

(viii) the statement of the use for which the apartment is intended and restrictions on its 

use, if any; 

(b) 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; 

(ii) the area and price of the plot; and 

(iii) the statement of the use for which the plot is intended and restriction on its use, it any; 

(c) the copies of documents to be attached with the agreement,- 

(i) the certificate by [officer not below the rank of Assistant Collector Grade-II] referred to in 

clause (a) of sub-section (2) of section 3; 

(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 of apartments is constructed or is 

to be constructed;  

(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 [; and] 

[(iv) copy of the approved layout plan of colony.] 

7. Registration of agreements of sale. - (1) Any agreement of sale entered into under the sub-

section (1) of section 6 shall be presented for registration under the Registration Act, 1908, (Central 

Act No. 16 of 1908), by the promoter or by any other person competent to do so at the proper 

registration office and execution thereof shall be admitted by the person executing the document or 

his representative, assignee or agent. 

(2) Where any agreement of sale is entered into or is purported to be entered into at any time before 

the commencement of this Act, such document may be presented for registration at the proper 

registration office and its execution may be admitted by any of the persons concerned within six 

months of the commencement of this Act, and the registering officer shall accept such document for 

registration and register it as if it was presented and its execution admitted within time. 

(3) On presenting a document for registration under sub-section (2), if the person executing such 

document or his representative, assignee or agent does not appear before the registering officer and 

admit the execution of the document, the registering officer shall cause a summons to be issued 

requiring the executant to appear at the registration office either in person or by duly authorised agent 

on a date fixed in the summons and if the executant fails to appear in compliance with the summons 

so issued, the execution of the document shall be deemed to be admitted by him and the registering 

officer may proceed to register the document accordingly and if the executant appears before the 

registering officer but denies execution of the document, the registering officer shall, after giving him a 

reasonable opportunity of being heard, if satisfied that the document has been executed by him, 

proceed to register the document accordingly. 

 

8. Effect of non-registration of agreement. - Where may agreement for sale entered into under sub-

section (1) of section 6, whether entered into before or after the commencement of this Act, remains 

unregistered for any reason, then notwithstanding anything contained in any law for the time being in 

force, or in any judgement, decree or order of any court, it may be received as evidence of a contract 

in a suit for specific performance under Chapter II of the Specific Relief Act, 1963 (Central Act No. 47  

1
. Substituted vide Punjab Act No. 21 of 2014 w.e.f 27.8.2014 

2
. ‘and’ omitted vide ibid. 

3.
 Word ‘ánd’ added vide ibid. 

4.
 Added vide ibid. 



of 1963), or as evidence, of part performance of a contract for the purposes of section 53A of the 

Transfer of Property Act, 1882, (Central Act No. IV of 1882), or as evidence of any collateral 

transaction not required to be effected by registered instrument. 

 

[9. Accounts of sums taken by promoters. - The promoter shall maintain a separate account in any 

scheduled bank of sums taken by him from persons intending to take or who have taken apartments 

or plots, as advance, towards sale price or for any other purpose, or, deposit, including any sum so 

taken towards the share capital for the formation of a co-operative society or a company, or towards 

the outgoings (including ground rent, if any, municipal or other local taxes, charges for water or 

electricity, revenue assessment, interest on mortgages or other encumbrances, if any, stamp duty and 

registration fee for the agreement of sale and the conveyance); and the promoter shall hold the said 

moneys for the purposes for which they were given and shall disburse the moneys for those purposes 

including for the construction of apartments and, in the case of colonies, for meeting the cost of 

development works, and shall submit quarterly statement to the competent authority making full and 

true disclosure of all transactions in respect of that account and may utilize not more than fifty percent 

for any other purpose from the amounts so collected.] 

 

10. Responsibility for outgoings 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 outgoings, even thereafter, pay all outgoings (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 outgoings 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 outgoings 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. 

 

11. No alterations, rectification of defects. - (1) After the plans and specifications of the building as 

approved by the authority which is required so to do under any law are disclosed or furnished to the 

person who agrees to take an apartment, the promoter shall; 

(i) not make any alterations in the structures described therein in respect of such apartment, 

without the previous consent of that person; or 

(ii) not make any other alterations in, or additions to the structure of the building or construct any 

additional structures, without the previous consent of all the persons who have agreed to take 

apartments in such building. 

(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 unauthorised change in the construction is brought to the notice of the promoter within 



a period of two years 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 

unauthorised 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 competent authority and the competent 

authority shall, after giving an opportunity of being heard to the parties and after making further 

enquiry, if any, as it may deem fit, record its decision and the decision so recorded shall be final. 

12. Refund of amount. - If the promoter,- 

(a) fails to give possession, in accordance with the terms of his agreement, of a plot or an 

apartment duly completed by the date specified, or any further date agreed to by the parties; or 

(b) for reasons beyond his control and of his agents, is unable to give possession of the plot or 

the apartment by the date specified, or the further agreed date; the promoter shall be liable on 

demand, but without prejudice to any other remedies 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 as may be determined by the competent authority 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 it 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. 

13. No mortgage without consent. - (1) 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 after the agreement 

referred to in section 6 is registered, 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 person and has 

not yet received from him all the amounts agreed to be paid, the latter 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. 

 

14. Occupation and completion certificate. - (1) It is 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 certificates 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 the 



aforesaid 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 competent authority 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 5. 

(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, issue an occupation certificate: 

[Provided that the promoter shall transfer free of cost the area under roads, open spaces, parks and 

sites meant for public utilities to the local authority or development authority, as the case may be, and 

this transfer would be exempted from stamp duty and any cess applicable.] 

 

[15. Promoter to the execute documents. - (1) After the occupation certificate is obtained under 

section 14, the promoter shall submit a copy thereof to the competent authority and thereafter he shall 

take all necessary steps to complete his title and convey the exclusive ownership of the apartment 

containing such particulars as may be prescribed and the undivided interest in the common areas and 

facilities appurtenant to such apartment to the person in whose favour he has executed an agreement 

of sale of that apartment, and execute a conveyance deed of apartment 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 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 which he is taking up in 

his own name and apartments which are meant for sale but are still unsold. 

(2) In the case of a plotted colony, after obtaining completion certificate from the competent authority, 

he shall take all necessary steps to execute a conveyance deed of plot in accordance with agreement 

of sale, within a period of three months from the date of giving possession of the plot and also deliver 

all documents of title relating to the property, which are in his possession and the promoter shall not 

reserve any right in the property except to the extent of plots, which he is taking up in his own name 

and plots, which are meant for sale but are still unsold.] 

 

16. Enforcement of registration of conveyance. - (1) If the promoter without sufficient cause fails to 

execute the conveyance deed of apartment and other relevant documents within three months in 

terms of the provisions of section 15, the person in possession of the apartment in pursuance of the 

agreement of sale may make an application, in writing, in the prescribed form to the competent 

authority 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 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 competent authority 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 to present the conveyance deed of apartment though not executed by the 

promoter for unilateral execution of registration. 

(2) After the conveyance deed of apartment alongwith the certificate issued by the competent 

authority 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 by section 6, or fails to 

execute the conveyance deed of apartment and other relevant documents as specified in sub-section 

(1), within three months, the competent authority may, either on a complaint or suo-moto, impose for 

each plot or apartment for which there is a default, a penalty up to a maximum of five per cent of the 

price of the plot or the apartment or five thousand rupees, whichever is greater, and further minimum 

penalty for each plot or apartment of one hundred rupees for each day for which the default 

continues, and the penalty may be recovered as an arrear of land revenue. 

(4) The penalty imposed in sub-section (3) shall be in addition to any action taken under the Indian 

Stamp Act, 1899 (Central Act No. 2 of 1899) or the Registration Act, 1908 (Central Act No. 16 of 

1908), and if a penalty is imposed under the provisions of any or 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. 

17. Promoter's responsibility for essential services. - (1) No promoter and no person who is 

responsible for the management and maintenance of a building of 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 by the person who has taken or 

agreed to take an apartment or by any person in occupation thereof through or under him. 

(2) It there is a contravention of the provisions of sub-section (1), the person who has taken or agreed 

to take the apartment or the occupier thereof may make an application to the competent authority for 

a direction to restore such supply or service. 

(3) If the competent authority 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 competent authority 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 shall be liable, upon a further direction by the competent authority to that effect, to a 

penalty which may extend to one hundred rupees for each day during which the default continues 

thereafter. 



(5) Notwithstanding anything contained in any law for the time being in force, the competent authority 

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: 

Provided that the State Government may for the purpose of satisfying itself that the order made was 

according to law, call for the case in which such an order was made and may pass such order with 

respect thereto as it thinks fit. 

(6) Any promoter or person responsible for the management and maintenance of building or 

apartment, 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 five 

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. - (1) 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. - (2) 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 or service is 

cut off by the local authority or any other authority. 

 

[17A. Formation of association. - (1) The competent authority shall by an order direct to form an 

association of residents in respect of a colony within a period of five years from the date of issue of 

completion certificate for maintenance and up-keep of common infrastructure and facilities in the 

colony. 

(2) The owner or allottee or occupier of any plot or built up property shall be a member of the 

association from the date he takes possession of such plot or property. 

(3) The promoter of the colony shall be associate member of the association in respect of plots and 

properties meant for allotment or sale, but not yet allotted or sold. When such plot or property is later 

on allotted, sold or otherwise transferred, the allottee shall become a member of the association and 

the promoter shall cease to be associate member of the association in respect of such plot or property 

from the date of delivery of possession. 

(4) The responsibility for administration and management of the colony and maintenance and upkeep 

of common areas, infrastructure and common services of the colony shall devolve on the association 

from the date specified in the order under sub-section (1): 

Provided that provisions of sections 19 to 37 of the Punjab Apartment Ownership Act, 1995 (Punjab 

Act 13 of 1995), shall apply mutatis mutandis regarding association and regulation of its affairs formed 

in a colony or building.] 

 

18. Regulation of property transactions. - (1) 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 [by the officer not below the rank of Assistant 

Collector Grade-II and make full and true disclosure of the license obtained from the 

competent authority under section 5]; 

(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 lessor for the transaction; 

(d) [Omitted] 

(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 outgoings, including ground rent, it any, municipal or other 

local taxes, revenue assessment, interest on any mortgage or other encumbrance, 

development charges or charges for maintenance and upkeep of roads, drainage, sewerage, 

water supply, electricity, laid out 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 4 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 13, 15 and 16 shall apply mutatis mutandis to a transaction of property 

made under this section., 

 

19. General liabilities of allottee. - (1) Every allottee who has executed an agreement of sale to take 

an apartment or a plot under section 6 or any property under section 18 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 per cent of the price of the 

apartment or plot or property, as the case may be, or one thousand rupees, whichever is greater. 

1
[20. Restriction on development and structures in a colony. - (1) No person shall raise 

construction of any building, lay roads or water supply lines or sewerage lines or erect electricity poles 

in a colony, in respect of which licence has not been obtained from the competent authority. 

(2) No department of the Central Government or the State Government or Authority or Municipality or 

Board, shall sanction any building plan, give water connection, sewerage connection, telephone 



connection or electricity connection to any building or land situated in a colony or building, in respect 

of which license has not been obtained from the competent authority. 

(3) No Registrar or Sub-Registrar appointed under the provisions of the Registration Act, 1908, shall 

register sale deed or any other document regarding sale of land or plot or building situated in a 

colony, in respect of which license has not been obtained from the competent authority. 

(4) Every owner or occupier of a property in a colony in respect of which licence has been obtained 

under this Act, shall comply, while erecting, re-erecting or using the said property, with the conditions 

regarding use of land, layout plan, zoning, site coverage, height of building, setback lines, structural 

and sanitary requirements, architectural control, design of buildings and material to be used in 

construction, as may be prescribed.] 

 

CHAPTER III 
Registration of Promoters and Estate Agents 

 
21. Registration compulsory. - (1) From such date as may be fixed by the State Government, by 

notification in the Official Gazette in this behalf, no person shall carry on the business of promoter or 

estate agent, or represent or hold himself out as carrying on such business, except under and in 

accordance with the terms and conditions of the certificate of registration granted under this Act. 

(2) An application for registration under sub-section (1) as a promoter, or as an estate agent, as the 

case may be, shall be made along with a prescribed fee in the prescribed form to the competent 

authority, and the competent authority on receipt of the application may enter the name of the 

applicant in the register of promoters, or, in the register of estate agents, as the case may be, 

maintained under this Act in the prescribed form and grant a certificate of registration in the 

prescribed form to such person for the conduct of his business in accordance with the terms and 

conditions of the certificate of registration and the provisions of this Act and the rules made 

thereunder. 

22. Conditions for registration. - Before registering and granting a certificate of registration to a 

promoter or, an estate agent under the provisions of Section 21, the competent authority shall satisfy 

itself,- 

(a) in the case if the application is for registration as a promoter, that the promoter himself or one 

of his employees, or one of the partners of the firm or one of the directors of the company if the 

applicant is a firm or company, as the case may be, possesses the prescribed qualifications for 

conducting the business of a promoter; 

(b) in the case if the application is for registration as an estate agent that the applicant possesses 

qualifications as may be prescribed; 

(c) that the applicant furnishes to the competent authority, either a bank guarantee or a security, 

for such amount and in such manner as may be prescribed; 

Provided that where the applicant is a statutory corporation, board or authority established under any 

law for the time being in force, no such security shall be required; 



(d) that the applicant produces an income-tax clearance certificate from the income tax 

authorities; 

(e) that the applicant has not been convicted of an offence under this Act or under any law 

relating to construction or use of premises, or, if convicted, a period of five years has elapsed 

after that conviction: 

Provided that an authority created for development of land or housing under any law for the time 

being in force, shall be exempted from these conditions, and shall be granted a certificate of 

registration on application. 

23. Term and renewal of registration. - Every certificate of registration of a promoter or an estate 

agent granted under section 21 shall be valid for a period of five years and, on the expiry of such a 

period, it may be renewed for another period of five years by the competent authority, on an 

application along with the prescribed fee, made by the promoter or the estate agent in that behalf : 

Provided that the conditions referred to in section 22 continue to be fulfilled and the application has 

been made at least three months before the expiry of the certificate of registration. 

24. Refusal to grant or renew registration. - If, after giving the applicant an opportunity of being 

heard, the competent authority, refuses to grant or renew a certificate of registration, it shall record its 

reasons therefor in writing and communicate the same to the applicant. 

25. Cancellation of certificate of registration. - (1) A certificate of registration granted under section 

21 shall be liable to be cancelled by the competent authority on the grounds mentioned in sub-section 

(2) and by an order made in writing recording the reasons for such cancellation. 

(2) A certificate or registration is liable to be cancelled, if the promoter or estate agent, as the case 

may be,- 

(a) surrenders the certificate of registration as he does not wish to continue carrying on the 

business; 

(b) has applied to be adjudicated or has been adjudicated an insolvent or is an undischarged 

insolvent; 

(c) has been adjudicated to be of unsound mind by a competent court; 

(d) has been convicted of an offence under this Act or under any law relating to construction or 

use of premises and a period of five years has not elapsed after that conviction; 

(e) has contravened any of the terms or conditions of the certificate of registration or any of the 

provisions of this Act or the rules made thereunder. 

26. Notice before cancellation. - (1) Before cancelling a certificate of registration under section 25, 

the competent authority shall give notice to the promoter, or the estate agent, as the case may be, 

specifying the grounds and calling upon him to show-cause why the certificate of registration should 

not be cancelled. 

(2) After considering the explanation, if any, offered by the promoter, or, the estate agent, as the case 

may be, the competent authority may cancel the certificate of registration, or pass such orders as it 

may deem fit. 



(3) Notwithstanding anything contained in sub-sections (1) and (2), the competent authority may 

suspend the certificate of registration of a promoter or an estate agent, as the case may be, pending 

decision on the matter of cancellation of the certificate of registration. 

(4) Where any certificate of registration is suspended or cancelled under this Act, no person shall be 

entitled to any compensation or the refund of any fee paid in respect thereof. 

27. Carrying on business after cancellation. - When a certificate of registration is suspended or 

cancelled under the provisions of section 26 or when it expires and is not renewed, under the 

provisions of section 23, a promoter or estate agent, as the case may be, shall cease to carry on the 

business and any business or activity in furtherance of his business during the period of suspension 

or after the expiry or cancellation of the certificate of registration, shall be deemed to be carried on 

without any certificate of registration for the purpose of section 21 and shall be liable for all 

consequences thereof : 

Provided that, when decision is pending on an application for renewal of registration, no such 

presumption shall be made, if business is carried on after the expiry of the period of registration of 

certificate. 

28. Maintenance of accounts and records. - (1) Every registered promoter or estate agent shall 

maintain such accounts, registers and records in such form and manner as may be prescribed. 

(2) The competent authority shall maintain such register as may be prescribed showing sufficient 

particulars of all cases in which licence under section 5 or certificate of registration under this Chapter 

is granted or refused by him and the said register shall be available for inspection without charges by 

all interested persons and such persons shall be entitled to have extract therefrom. 

29. Audit. - The promoter or estate agent shall get his accounts audited after the close of every 

financial year by a chartered accountant, and shall produce a statement of accounts duly certified and 

signed by such chartered accountant in the manner prescribed and it shall be verified during the audit 

that amounts collected for a particular purpose are not utilised for any other purpose. 

30. Periodical returns. - Every registered promoter or estate agent shall submit to the competent 

authority such periodical returns as may be prescribed. 

31. Inspection. - For the purpose of satisfying itself, that the requirements of this Act and the rules 

made thereunder or the terms and conditions of the certificate of registration granted under this 

Chapter or licence granted under section 5 of a promoter or an estate agent are duly complied with, 

the competent authority may inspect or cause to be inspected, at any time during business hours, any 

accounts or records of a promoter or an estate agent relating to such business. 

 

 

 

 

 

 

 

 



CHAPTER IV 
Miscellaneous Provisions 

 

32. Constitution of Punjab Urban Development Fund. - [(1) Every promoter to whom a licence has 

been granted under section 5 to develop a colony or who stands exempted or to whom exemption is 

granted under section 44, shall deposit service charges at the rate of rupees three per square meter 

of the plotted area proposed to be developed by him as residential, commercial or industrial 

(excluding the area used by the public for general purpose) into a colony in lump sum, prior to grant of 

licence and the promoter shall in turn be entitled to pass on the service charges so paid by him to the 

allottees.] 

(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. 

(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 Punjab Urban Development Fund" 

(hereinafter referred to as the Fund) and shall vest in such Authority as the State Government may 

notify in this behalf and shall be administered by that Authority. 

[(4) The Fund shall be utilized by the Authority notified under sub-section (3) for the benefit of the 

allottees, for development of the colonies to promote research and development, training and capacity 

building and up-gradation of infrastructure or apparatus in town and country planning 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. 

 

33. Appellate Authority and Appeals. - (1) The State Government may, by notification in the Official 

Gazette, appoint an officer or an authority as appellate authority, (hereinafter referred to as appellate 

authority) with the power to decide appeals against the orders of the competent authority : 

Provided that the State Government may appoint as appellate authority more than one officer or 

authority and distribute the work among them in the manner it may deem fit; 

(2) Any person aggrieved by any order of the competent authority under this Act, may, within a period 

of thirty days of the communication of the order to him, prefer an appeal to the appellate authority in 

such form and manner as may be prescribed. 

(3) The appellate authority may, after giving an opportunity of being heard to the parties and to the 

competent authority, pass such order as deemed fit, either confirming, modifying or setting aside the 

order of the competent authority, and record its reasons in writing, and the order of the appellate 

authority so passed shall be final, unless revised by the State Government under section 34. 

(4) In discharging its functions, the appellate authority shall have all the powers under the Code of 

Civil Procedure, 1908 (Central Act V of 1908) of a Civil Court while deciding an appeal. 

 

34. Revision. - The State Government, either suo moto, or, on an application from any party 

aggrieved by any order within sixty days of the date of the communication to him of such order, may 

call for and examine the record of any proceedings disposed of by the competent authority, or the 



appellate authority, as the case may be, for the purpose of satisfying itself as to the correctness, 

legality or propriety of any proceedings and of any order passed therein, and may pass such order in 

relation thereto as it may deed fit : 

Provided that no order adverse to any person shall be passed without giving him an opportunity to 

show cause against such proposed order : 

Provided further that no revision application will be entertained when an appeal has been or could 

have been filed against the order. 

 

35. Bar on Jurisdiction. - No civil court shall have any jurisdiction to entertain or decide any question 

relating to matters arising under this Act or the rules made thereunder and every order passed by the 

competent authority subject to appeal, or, revision, every order passed by the appellate authority 

subject to revision, and every order passed by the State Government in revision, shall be final and 

shall not be questioned in any court of law. 

 

[36. Offences and penalties. - (1) Any person or promoter or his agent registered under the Act, 

without reasonable cause, fails to comply with or contravenes the provisions of sections 3, 5, 6, 9 or 

15 shall, on conviction, be punished with imprisonment for a minimum term of three years which may 

extend to seven years and with minimum fine of rupees two lac, which may extend to rupees five lac. 

(2) Any promoter who contravenes the provisions of section 9 by misusing any amount advanced or 

deposited with him for any purpose other than the purposes mentioned in section 9, shall, on 

conviction, be punished with imprisonment for a term which shall not be less than three years and 

with fine which shall not be less than two lac rupees. 

(3) Any promoter or estate agent who, without reasonable excuse, fails to comply with, or 

contravenes, any other provision of this Act or of any rule made there under, or does not pay the 

penalty imposed upon him by the competent authority, shall, if no other penalty is expressly provided 

for the offence, be punished on conviction, with imprisonment for a term not less than one year which 

may extend to three year and with a minimum fine of rupees ten thousand which may extend to 

rupees one lac. 

(4) Where an offence is committed under this Act by any Central Government or State Government or 

Municipality or Board or Authority or it is proved that the offence has been committed with the consent 

or connivance or is attributable to any neglect on the part of any officer or employee of the department 

of such Government or Municipality or Board or Authority, shall be deemed to be guilty of the offence 

and shall be liable to be proceeded against and punished accordingly: 

Provided that nothing contained in this section shall render the officer, liable to any punishment under 

this Act, if such officer proves that the offence was committed without his knowledge or that he 

exercised all due diligence to prevent the commission of such offence. 

(5) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 

1974), it shall be lawful for a Judicial Magistrate of the First Class to pass on any person convicted of 

any offence under this Act, a sentence of imprisonment or of fine or both as provided in the relevant 

section of this Act, in excess of his powers under section 27 of the said Code. 



(6) The fine imposed under sub-sections (1), (2), (3) or (4) may be recovered as and arrear of land 

revenue and out of the fine so recovered, the Judicial Magistrate 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.] 

 

37. Offences by companies. - (1) If the person committing an offence under this Act is a company, 

the company as well as every person who at the time the offence was committed was in charge of, or, 

was responsible to the company for the conduct of business by the company, shall be liable to be 

proceeded against and punished accordingly. 

Provided that nothing contained in this sub-section shall render any such person liable to such 

punishment provided in this Act, if he proves that the offence was committed without his knowledge, 

or that he exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 

committed with the consent or connivance of or is attributable to any negligence on the part of any 

director, manager, secretary or other officer of the company, such director, manager, secretary or 

other officer shall be liable to be proceeded against and punished accordingly. 

 

Explanation. - For the purpose of this section,- 

(a) "company" means a body corporate and includes a development authority or public authority, 

a firm or other association of persons; and 

(b) "director" in relation to firm means a partner in the firm, and in relation to a development 

authority or public authority means a person who takes decisions on matters of policy in its 

affairs. 

38. Prosecution and composition of offences. - (1) No prosecution for any offence punishable 

under this Act shall be instituted except with the previous sanction of the competent authority or any 

person authorised in this behalf by the competent authority. 

(2) The competent authority may, either before or after the institution of the proceedings for 

prosecution, compound any offence punishable by or under this Act subject to such conditions and 

restrictions as may be prescribed. 

(3) Where an offence has been compounded, the offender, if in custody, shall be released and no 

further proceedings shall be taken against him in respect of the offence compounded: 

[Provided that imposition of penalty, conviction and fine shall not be deemed to regularize the 

unauthorized constructions, buildings or colony: 

Provided further that without prejudice to the provisions of sections 36, 37 and sub-section (1) of this 

section, the competent authority after giving a notice of thirty days and affording a reasonable 

opportunity of being heard to the persons concerned, order to demolish or remove or stop 

construction or development of such unauthorized construction, building or colony and restore to its 

original state or to bring into conformity with the conditions, which have been violated and if such 

person fails to do so within a period of six weeks from the order, may himself take such measures, as 



may appear to him necessary to give effect to the order and the cost of such measure shall be 

recoverable from such person, as arrears of land revenue.] 

 

39. Structure to be demolished in certain cases. - (1) Without prejudice to the provisions of this 

Act, the competent authority may, by notice, call upon any person who has committed a breach of [the 

provisions of section 5 or 20] to show cause why the structure should not be demolished and if such 

person fails to show cause to the satisfaction of the competent authority within a period of fifteen 

days, the competent authority may pass an order requiring him to demolish the structure within sixty 

days from the date of the order. 

(2) If the order made under sub-section (1) is not complied with, within the period specified therein the 

competent authority may itself take such measures as it may deem fit to give effect to the order and 

the cost of such measures shall, if not paid on demand being made to it, be recoverable from such 

person as arrears of land revenue. 

 

40. Indemnity. - (1) No suit, prosecution or other legal proceedings shall lie against any officer or 

employee of the State Government or of the competent authority in respect of anything which is, in 

good faith, done or intended to be done in pursuance of this Act or the rules made thereunder. 

 

41. Delegation. - The State Government may, by notification, delegate all or any of its powers under 

this Act, except the power to make rules, to any officer subordinate to it subject to such restrictions 

and conditions as may be specified in such notification. 

 

42. Application of the Act to apartments already in existence. - (1) This Act shall apply to 

apartments already in existence and agreements of sale of apartments or other properties made 

before the commencement of this Act. 

(2) As respects apartments which on the commencement of this Act have already been constructed or 

converted, the provisions of sections 12, 13 and 15 shall apply with the following modifications, that is 

to say,- 

(a) in section 12, if the date specified or agreed to has already passed at the commencement of 

this Act then the promoter shall give possession within three months from such 

commencement, and thereafter the promoter shall be liable on demand to refund the amounts 

on the terms and conditions provided in the said section; 

(b) in section 13, in sub-section (1), the words and figure "after the agreement referred to in 

section 6 is registered" shall be read as if the words "after the commencement of this Act" had 

been substituted; and 

(c) in section 15, the words "within three months from the date of giving possession" shall be read 

as if the words "within three months from the commencement of this Act" had been 

substituted. 



43. Over-riding effect of this Act. - (1) The provisions of this Act shall take effect, notwithstanding 

anything to the contrary contained in any other law for the time being in force or in any contract. 

(2) The provisions of the Transfer of Property Act, 1882 (Central Act No. IV of 1882) shall, in so far as 

they are not inconsistent with the provisions of this Act, apply to every apartment together with the 

percentage of undivided interest in the common areas and facilities appurtenant to such apartment, 

as they apply in relation to any immovable property. 

 

44. Exemption. - (1) Subject to the provisions of section 32, nothing in this Act shall apply if the 

promoter is,- 

(a) a local authority or statutory body constituted for the development of land or housing; or 

(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. 

(2) If the State Government is of the opinion that, the operation of any of the provisions of this Act, 

causes undue hardship, or circumstances exist which render it expedient to do so, it may exempt, by 

a general or special order, any class of persons or areas from all or any of the provisions of this Act, 

subject to such terms and conditions as it may impose.. 

 

45. Power to make rules. - (1) The State Government may, subject to the condition of previous 

publication, by notification in the Official Gazette, make rules for carrying into effect the provisions of 

this Act. 

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide 

for all or any of the following matters, namely:- 

(a) the particulars as respects the design and the materials to be used in the construction of the 

building and the other information and documents to be disclosed, the manner in which 

disclosure is to be made and the documents of which true copies shall be given by the 

promoter under clauses (f), (m) and (n) of sub-section (2) of section 3; 

(b) the other matters to be disclosed in an advertisement or prospectus under sub-section (2) of 

section 4; 

(c) the form of the application, the information to be attached with the application and the fee to 

be paid for the grant of permission under sub- section (1) of section 5; 

(d) the authority to be prescribed for giving opinion to the competent authority under sub-section 

(2) of section 5; 

(e) the form of licence to be issued and the agreement to be entered into under sub-section (3) of 

section 5; 

(f) the fee to be paid for renewal of licence under sub-section (4) of section 5; 

(g) the criteria of the economically weaker sections of society and the manner of reserving 

residential apartments or plots for weaker sections of society and the conditions subject to 



which the reservation is to be made under sub-section (2) of section 3 and under sub-section 

(9) of section 5; 

(h) the manner of recovering charges under sub-section (13) of section 5; 

(i) the form for the agreement of sale and the particulars to be contained in and the documents or 

copies thereof to be attached to such agreement under sub-section (1) of section 6; 

(j) the rate of interest under sub-section (2) of section 6; 

(k) the fee to be paid under sub-section (2) of section 11; 

(l) the particulars to be included in respect of conveyance deed of apartment under section 15; 

(m) the form of application under sub-section (1) of section 16; 

(n) the matters to be prescribed under section 20; 

(o) the form in which an application for registration of promoters and estate agents should be 

made and the fee for such application form for maintenance of registers and the form of 

registration certificate under sub- section (2) of section 21; 

(p) the qualifications for a promoter and for an estate agent and the amount and manner of 

security to be furnished under section 22; 

(q) the fee for renewal of registration under section 23; 

(r) the form and manner of maintaining accounts, registers and records by a promoter or estate 

agent under sub-section (1) and maintenance of register by the competent authority under 

sub-section (2) of section 28; 

(s) the manner in which the accounts should be audited and certified by a chartered accountant 

under section 29; 

(t) the periodical returns which a promoter or estate agent has to submit to the competent 

authority under section 30; 

(u) the purposes to be prescribed under sub-section (4) of section 32; 

(v) form and manner in which an appeal should be preferred to the appellate authority under sub-

section (2) of section 33; and 

(w) any other matter which has to be or may be prescribed by rules. 

(3) Every rule made under this section shall be laid as soon as may be, after it is made, before the 

House of the State Legislature, while it is in session for a total period of fourteen days, which may be 

comprised in one session or in two or more successive sessions, and if, before the expiry of the 

session in which it is so laid or the successive sessions aforesaid, the House agrees in making any 

modification in the rule, or the House agrees that the rule should not be made, the rule shall thereafter 

have effect only in such modified form or be of no effect, as the case may be; so however, that any 

such modifications or annulment shall be without prejudice to the validity of anything previously done 

or omitted to be done under that rule. 



 

46. Repeal and Savings. - (1) The Punjab Regulation of Colonies Act, 1975 (Punjab Act No. 10 of 

1975) is hereby repealed. 

(2) The repealing of the Act under sub-section (1) shall not affect - 

(i) the previous operation of the Act so repealed or anything duly done or suffered thereunder; 

(ii) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so 

repealed; 

(iii) any penalty, forfeiture or punishment incurred in respect of any offence committed against the 

Act so repealed; 

(iv) any investigation, legal proceedings, or remedy in respect of any such right, privilege, 

obligation, liability, penalty, forfeiture, or punishment as aforesaid; and any such investigation, 

legal proceedings or remedy may be instituted, continued or enforced or any such penalty, 

forfeiture and punishment may be imposed as if the aforesaid Act had not been repealed. 

(3) Notwithstanding such repeal, anything done or any action taken under the Act so repealed 

including any notification, order, notice issued, application made, or permission granted, which is not 

inconsistent with the provisions of this Act shall be deemed to have been done or taken under the 

corresponding provisions of this Act as if this Act was in force at the time such thing was done or 

action was taken and shall continue to be in force, unless and until superseded by anything done or 

any action taken under this Act 



PUNJAB GOVT. GAL (EXTRA), APRIL 16. 2021 133 

(CHTR 26, 1943 SAKA) 

PART I 

GOVERNMENT OF PUNJAB 

DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB 

NOTIFICATION 

The 16th April, 2021 

No.18-LegJ2O2L- The following Act of the Legislature of the State 
of Punjab received the assent of the Governor of Punjab on the 27th day of 
March. 2021, is hereby published for general information:- 

THE PUNJAB APARTMENT AND PROPERTY REGULATION 
(AMENDMENT) ACT, 2021 

(Punjab Act No. 18 of 2021) 

AN 

ACT 
further to amend the Punjab Apartment and Property Regulation Act, 1995. 

BE it enacted by the Legislature of the State of Punjab in the Seventy-
second year of the Republic of India as follows:- 

I. (1) This Act may be called the Punjab Apartment and Property Short title and 

Regulation (Amendment) Act, 2021. cOIflflflCCment. 

(2) It shall come into force on and with effect from the date of its 
publication in the Official Gazette. 

2. In the Punjab Apartment and Property Regulation Act, 1995 AindiuenI in 

(hereinafter referred to as the principal Act), in section 2.- 2 ;! 

i) forclause (a), the following clause shall be substituied. namely:, 
of 1995 

"(a) 'advertisement" means any document described or 
issued as advertisement through any medium and 
includes any notice, circular or other documents or 
publicity in any form, informing persons about a colony. 
or offering for sale of a plot, building or apartment or 
inviting persons to purchase in any nmnnci '.iich plot. 

building or apartment, or to make advances r deposits 
for such purposes;; 

(ii) in clause (cc), for the words "five or more apartments", 
wherever occurring, the words "eight or more apariments" 
shall be substituted; 

(iii) in clause (i),- 

(a) for the words "one thousand square meters". wherever 
occurring, the words "five hundred square meters" 
shall be substituted; and 

(b) in sub-clause (ii), for the sign ";" at the end, the sign 
and word"; or" shall be substituted and after sub-clause 
(ii), the following sub-clause shall be added. namely:- 

4 



PUNJAB GOVT. GAl (EXTRA), APRIL 16, 2021 134 

(CHTR 26. 1943 SAKA) 

"(iii) as a result of family partition, inheritance, 
succession or partition of joint holdings not 
with the motive of earning profit:"; 

(iv) forclause (j), the following clause shall be substituted, namely:- 

'ij) "common areas" means,- 

(i) the entire land of the project, or where the 
project is developed in phases. the entire land 
of that phase; 

(ii) the staircases, lifts, staircase and lift lobbies, 
fire escapes, and common entrances and exits 
of buildings: 

ciii) the common basements, terraces, parks. play 
areas, open parking areas and common 
storage spaces; 

(iv) the premises for the lodging of persons 
employed for the management of the property 
including accommodation for watch and ward 
stalls or for the lodging of community service 
personnel; 

(v) installations of central services such as 
electricity, gas, water and sanitition, air-
conditioning and incinerating, system for 
water conservation and renewable energy; 

(vi) the water tanks, sumps, molors, tans, 
compressors, ducts and all apparatus 
connected with installations for common use; 

(vii) all community and commercial facilities as 
provided in the project: and 

(viii) all other portions of the project necessary or 
convenient for its maintenance, safety. etc.. 
and in common use;": 

(v) alter clause (I), the following clauses shall be inserted, namely:- 

"(Ia) "completion certificate of building" means a certificate 
issued by the competent authority on written request 
of the applicant or promoter after completion of 
building works including finishing of all common 
services and utilities as provided in the approved 
Building Plans and Service Plans; 



PUNJAB GOVT. GAZ. (EXTRA), APRIL 16, 2021 135 

(CFITR 26, 1943 SAKA) 

(Ib) "completion certificate of project" means the 
completion certificate, or such other certificate. by 
whatever name called, issued by the competent 
authority certifying that the real estate project has 
been developed according to the sanctioned plan. 
layout plan and specifications, as approved by the 
competent authority under the local laws;": 

(vi) forclause (0), the following clause shall be substituted, namely:- 

"(o) 'estate agent means any person, who negotiates or 
acts on behalf ot'one person in a transaction of transfer 
of his plot, apartment or building, as the case may be, 
by way of sale, with another person or transfer of 
plot, apartment or building, as the case may be, of 
any other person to him and receives remuneration 
or fees or any other charges for his services, whether 
as commission or otherwise, and includes a person 
who introduces, through any medium, prospective 
buyers and sellers to each other for negotiation for 
sale or purchase of plot, apartment or building, as the 
case may be, and includes property dealers, brokers, 
middlemen, by whatever name called;": 

(vii) after clause (v), the following clauses shall be inciied. iiarncly:- 

"(va) "occupation certificate of building" means a certificate 
issued by the competent authority to occupy a building 
or part of the building or any portion whatsoever; 

(vb) "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 part of a building block in case 
of built up projects, as the case may be:": and 

(viii) for clause (w), the following clause shall be substituted, 
namely:- 

"(w) "person" includes,- 

(i) an individual: 

(ii) a Hindu Undivided Family; 

ciii) a company; 

(iv) a firm under the Indian Partnership Act, 1932 



PUNJAB GOVT. GAZ. (EXTRA). APRIL 16. 202 I 136 

(CHTR26, 1943 SAKA) 

or the Limited Liability Partnership Act. 2008. 
as the case may be; 

(v) an association of persons or a body of 
individuals, whether incorporated or not; 

(vi) a co-operative society registered under 
the Punjab Co-operative Societies Act, 196! 
(Punjab Act No. 25 of 1961); and 

(vii) any such other entity as the State Government 
may, by notification, specify in this behalf;". 

3. In the principal Act, in section 3, for sub-section (2), the following sub- Amendment in 

section shall be substituted, namely:- sectiQn 3 " 
Punjab Act 14 

'(2) A promoter who develops a colony or who Constructs or intends of 1995. 

to construct such building of 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 officer not below the rank otTebsildar 

• after he has examined the transactions concernln2 it in the 
previous ten years and 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: 

(b) furnish 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 advoctte having 
experience of atleast ten years from the revenue authority 
not bcIo the rank of Tehsildar. as the case mar he; and 

(c) submit an affidavit that all statutory requirements have been 
got completed for submission of revised layout or building 
plans. ". 

4. In the principal Act, in section 4, in sub-section (1), for clause (a), the AIflCfldIT1CnI in 
following shall be substituted, namely:- section 4 of 

Punj.th Act 4 
'(a) (i) he obtains license tinder sub-section (3) of section 5; and oft 95 

(ii) he obtains registration under section .S of the Real 



PUNJAB GOVT GAZ. (EXTRA). APRIL 16.2021 137 

(CHTR 26, 1943 SAKA) 

Estate (Regulation and Development) Act, 2016 
(Central Act No. 16 of 2016), 

which are in force and have not been suspended or revoked and their 
numbers are mentioned in the advertisement or prospects; and". 

5. In the principal Act, in section 6,- Amendment in 

section 6 of 
(i) for sub-sections (1) and (2), the following sub-sections shall Punjab Act 14 

be substituted, namely:- of 1995. 

"(1) Notwithstanding anything contained in any other 
law for the time being in force, a promoter who intends to 
construct or constructs a building of apartments, all or some 
of which arc o be taken or are taken on ownership basis, or 
who intends to offer for sale plots in a colony. shall. before he 
accepts any sum of money as advance payment or deposit, 
which shall not be more than ten 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 as 
provided under section 13 of the Real Estate (Regulation and 
Development) Act, 2016 and the rules framed thereunder 
together with documents and shall be registered under the 
Registration Act, 1908 (Central Act No. 16 of 1908): 

Provided that, if only a refundable application fee is 
collected from the applicant before draw of lots for allotment, 
such agreement will 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 
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 cullected together with interest at such ';e js may 

be prescribed in this behalf including compensation in the 
manner as provided under the Real Estate (Regulation and 
Development) Act, 2016 and the rules made thcreunder.": and 

(ii) sub-section (3) shall be omitted. 

6. In the principal Act, for section 9, the following section shall be Sibijttk 

substituted, namely:- of vcuon 9 of 
Punjab Act 
14of 1995. 



PUNJAB GOVT GAZ. (EXTRA), APRIL 16. 2021 138 

- (CHTR 26, 1943 SAKA) 

taken apartments or plots, as advance, towards sale promoter. 
price or for any other purpose, or, deposit, including 

any sum so taken towards the share capital for the formation of a 
co-operative society or a company. or towards the outgoings (including 
ground rent, if any, municipal or other local taxes, charges for 
water or electricity, revenue assessment, interest on mortgages or 
other cncumbrances, if any, stamp duty and registration fee for the 
agreement of sale and the conveyance): 

Provided that the promoter shall withdraw the amounts from 
the separate account, to cover the cost of the colony, in proportion to 
the percentage of completion of the colony: 

Provided further that the amounts from the separate account 
shall be withdrawn by the promoter after it is certified by an engineer, 
an architect and a chartered accountant in practice that the withdrawal 
is in proportion to the percentage of completion of the colony: 

Provided further that the promoter shall get his accounts audited 
within six months after the end of every financial year by a chartered 
accountant in practice, and shall produce a statement of accounts duly 
certified and signed by such chartered accountant and it shall be verified 
during the audit that the amounts collected for a particular colony 
have been utilised for the colony and the withdrawal has been in 
compliance with the proportion to the percentage of completion of the 
colony. 

Explanation.- For the purpose of this section, the term "schedided tatik 
meatis a bank included in the Second Schedule to the Reserve 
Bank of India Act, 1934.". 

7. In the principal Act, after section 10, the following section shall be lncuion of 
inserted, namely:- scction 10 -A ul 

Punjab Act 14 
"10-A. (1) The promoter shall not transfer or assign his majority i'i 

rights and liabilities in respect of a colony to a third 
Non-transfer of party without obtaining prior written consent from two- 
majority rights third allottees, except the promoter, and without the and liabilihes. - 

prior wntten approval of the competent authority: 

Provided that such transfer or assignment shall not affect the allotment 
or sale of the apartments, plots or buildings, as the case may be. in the colony 
made by the erstwhile promoter. 

9. The promoter shall maintain a separate account in any 
scheduled bank of sums of seventy percent taken Accounts of 

sums taken by by him from persons intending to take or who have 



PUNJAB GOVT. GAZ. (EXTRA). APRIL 16, 2021 139 
(CHTR 26. 1943 SAKA) 

Explanation.- For the purpose of this sub-section, the allottee, irrespective of 
the number of apartments or plots, as the case may be, booked by him 
or booked in the name of his family. or in the case of other persons 
such as companies or firms or any association of individuals, by 
whatever name called, booked in its name or booked in the name of its 
associated entities or related enterprises, shall be considered as one 
allottee only. 

(2) On the transfer or assignment being permitted by the allottees 
and the competent authority under sub-section (I), the intending promoter shall 
be required to independently comply with all the pending ob1igation unck'r the 
provisions of this Act and the rules made thereunder, and the pending obligations 
as per the agreement for sale entered into by the erstwhile promoter with the 
allottees: 

Provided that any transfer or assignment perniitted under the provisions 
of this section shall not result in extension of time to the intending promoter to 
complete the colony and he shall be required to comply with all the pending 
obligations of the erstwhile promoter, and in case of default, such intending 
promoter shall be liable to the consequences of breach or delay, as the case 
may be, as provided under this Act and the rules made thereunder.". 

8. In the principalAct, for sections 12 and 13, the following Sections shall Substitution ot 

be substituted, namely:- sections 12 and 
13 of Puiijab 

"12. (1) If the promoter,- Act 1401 
1995 

Refund of (a) fails to give possession. in accordance with 
arnoum. the terms ol' his agreement, of a 1)101 or an 
apartment duly completed by the date specified. or any further. 
date agreed to by the parties; or 

(b) for reasons beyond his control and of his agents, is unable to 
give possession of the plot or the apartment by the date 
specified, or further agreed date, the promoter shall be liable 
on demand, but without prejudice to any other remedies to 
which he may be liable, to refund the amounts already received 
by him in respect of that plot or apartment with interest 
including compensation at such rate and in such manner as 
provided under section 18 of the Real Estate (Regulation and 
Development) Act, 2016 and the rules made thereunder, 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: 



P(JNJAB GOVT GAZ. (EXTRA), APRIL 16, 2021 140 

(CHTR 26, 1943 SAKA) 

Provided that where an allonee does not intend to withdraw from the 
colony, he shall be paid, by the promoter, interest for every month of delay. tilt 
the handing over of the possession, at such rate as may be prescribed under 
the Punjab State Real Estate (Regulation and Development) Rules. 2017 made 
under the Real Estate (Regulation and Development) Act, 2016. 

(2) The promoter shalt compensate the allottees in case of any toss 
caused to him clue to defective title of the land on which the colony is being 
developed or has been developed, in the manner as provided under the Real 
Estate (Regulation and Development) Act, 2016, and the claim for compensation 
undcr this sub-section shall not be barred by limitation provided under any law 
for the time being in force. 

(3) If the promoter fails to discharge any other obligations imposed on 
him under this Act and the rules made thereunder or in accordance with the 
terms and conditions of the agreement for sale, he shall be liable to pay such 
compensation to the allottees, as provided under the Real Estate (Regulation 
and Development) Act, 2016. 

13. (1) No promoter shall, after he executes an agreement to sell any 

Nomongage apartment or plot, mortgage or create a charge on 
without consent. such apartment or the land or the plot, without 

obtaining the consent of two-third of allouees who 
take or agree to take such apartment or plot, and without the prior written 
approval of the competent authority: 

Provided that if any such mortgage or charge is macIc or created 
without such previous consent after the agreement referred to in section 6 is 
registered, it shalt not affect the right and interest of such person. 

(2) On the transfer or assignment being permitted by the allonees and 
the competent authority under sub-section (I), the intending promoter shall be 
required to independently comply with all the pending obligations under the 
agreement for sale entered into by the erstwhile promoter with the allottees: 

Provided that any transfer or assignment permitted under provisions 
of this section shall not result in extension of time to the intending promoter to 
complete the colony and he shall be required to comply with all the pending 
obligations of the erstwhile promoter. and in case of default, such intending 
promoter shall be liable to the consequences of breach or dela), as the case 
may be. 

(3)11 a promoter has executed an agreement of sate of an apartment 
or a plot with a person and has not yet received from him all the amounts 
agreed to be paid, the latter shall not mortgage or create a charge against such 
apartment or plot without the previous consent of the promoter: 



e 

PUNJAB GOVT. GAZ. (EXTRA). APRIL 16, 2021 141 

(CHTR 26, 1943 SAKA) 

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 
clue to the promoter.'. 

9. In the principal Act, in section 14. for the existing proviso under sub- Amendment in 

section (2), the following proviso shall be substituted. namely:- 14 ol 
Punjab Act 14 ot 

"Provided that the promoter shall transfer free of cost the area under 1995. 

roads, open spaces, parks and sites meant for public utilities to the local authority 
or development authority or association of allottees, as the case may be, and 
this transfer would be exempted from stamp duty and any cess applicable.". 

10. In the principal Act, in section 15, after sub-section (2), the following Ainendmnt in 

sub-section shall be added, namely:- secli,,n IS uf 
Punjab Act 14 

"(3) After obtaining the completion certificate or occupancy of 1995. 

certificate, as the case may be, and handing over physical possession to the 
allottees, it shall be the responsibility of the promoter to handover the necessary 
documents and plans including common areas, to the local authority or 
development authority or the association of the allottees, as the case may be.". 

II. In the principal Act, in section 16. in sub-section (3). the words and in'ndmcm in 

signs "or five thousand rupees, whichever is greater, and further minimum 16 ot 

penalty for each plot or apartment of one hundred rupees for each day for IAct I4 

which the default continues" shall be omitted. 

12. In the principal Act, in section 17, for sub-section (4). the following Amendment in 
sub-section shall be substituted, namely:- SectiOn 17 f 

Punat, Ad 4 
"4) If the supply or service is not restored before the date specified r 995 

under sub-section (3), the promoter or the person responsible for the 
management and maintenance of the building or apartment shall be liable to a 
penalty for every day during which such default continues, which may 
cumulatively extend upto five percent of the estimated cost of the colony as 
determined by the competent authority.". 

13. In the principal Act, for Section 17-A, the following section shall be .Sthstiiiii;'i ol 
substituted, namely:- SCctun I 7...\ UI 

Punjab Act 14 
"17-A. (I) After obtaining occupation certificate and within three ot 1995 

Formation of months of majority of the apartments being allotted, 
association. sold, or otherwise transferred, the promoter shall make 

an application to the competent authority appointed under clause (m) of 
section 3 of the Punjab Apartment Ownership Act, 1995 (Punjab Act No. 13 
of 1995) for the registration of association, with the persons who have taken 
apartments as members and if the promoter fails to make stich application, 
the allottees shall make such application. 



PUNJAB GOVT. GAZ. (EXTRA), APRIL 36.2023 142 

(CHTR 26, 3943 SAKA) 

(2) Xf the promoter or the allottees, as the case may be, fail(s) to 
make application forregistration of the association within the period mentioned 
in sub-section (1), the competent authority shall by an order, direct the promoter 
or the allottees, as the case may be, to font an association of residents in 
respect of a project within such period, as may be specified in the order. 

(3) The owner or allottee or occupier of any apartment shall be a 
member of the association from the date he takes possession of such apartment. 

(4) The promoter of the project shall be an associate member of the 
association in respect of apartment(s) meant for allotment or sale, but not yet 
allotted or sold. When such apartment(s) is later on allotted, sold or otherwise 
transferred, the allottee shall become a member of the association and the 
promoter shall cease to be an associate member of the association in respect 
of such apartment from the date of possession. 

(5) The responsibility for administration and management of the 
apartments and maintenance and upkeep of common areas. infrastructure and 
common services of the project shall devolve on the association from the dut 
specified by the competent authority in the order passed under sub-section 
(13) of section 5.". 

14. In the principal Act, for section 19, the following section shall be Substittition of 

substituted, namely:- SeCtion 39 of 
Punjab Act 34 

19. (1) The allottee shall be entitled to obtain thc infurmatinn .f ivv. 

Rights and relating to sanctioned plans. layout plans along with 
duties of the specifications, approved by the competent authority 
atlottees. and such other information as provided in this 

Act or the rules made thereunder or the agreement for sale 
signed with the promoter. 

(2) The allottee shall be entitled to know stage-wise time schedule of 
completion of the project. including the provisions for water, sanitation. elecuicity 
and other amenities and services as agreed to between the promoter and the 
allottee in accordance with the terms and conditions of thc agreement for sale. 

(3) The allottee shall be entitled to claim the possession of apartment, 
plot or building. as the case may be. and the association of allottees shall be 
entitled to claim the possession of the common areas. 

(4) The allottee shall be entitled to claim the refund of amount paid 
along with interest at such rate, as may be prescribed and compensatwn in the 
manner as provided under the Real Estate (Regulation and Development) Act, 
2016, from the promoter, if the promoter fails to comply or is unable to give 
possession of the apartment, plot or building, as the case may be, in accordance 
with the terms of agreement for sale or due to discontinuance of his business 



PUNJAB GOVT. GAZ. (EXTRA), APRIL 16. 2021 143 

(CHTR 26, 1943 SAKA) 

as a developer on account of suspension or cancellation of his license tinder 
the provisions of this Act or the rules made thereunder or suspension or 
revocation of his registration under the provisions of the Real Estate (Regulation 
and Development) Act, 2016. 

(5) The allottee shall be entitled to have the necessary documents and 
plans. including that of common areas, after handing over the physical possession 
of the apartment or plot or building, as the case may be, by the promoter. 

(6) Every allottee, who has entered into an agreement for sale to take 
an apartment, plot or building, as the case may be, under sections 6 or 18, shall 
be responsible to make necessary payments in such manner and within such 
time as specified in the said agreement for sale and shall pay at the proper time 
and place. the share of the registration charges, municipal taxes. water and 
electricity' charges, maintenance charges. ground rent. and othei charges, if 
any. 

(7) The allottee shall be liable to pay interest at such rate, as may be 
prescribed, for any delay in payment towards any amount or charges to be 
paid under sub-section (6). 

(8) The obligations of the ailonee under sub-section (6) and the liability 
towards interest under sub-section (7) may be reduced when mutually agreed 
to between the promoter and such alloitee. 

(9) Every allottee of the apartment, plot or building, as the case may 
be, shall participate towards the formation of an association or society or 
cooperative society of the allottees, or a federation of the same. 

(10) Every allottee shall take physical possession of the apartment, 
plot or building, as the case may be. within a period of two months of the 
occupancy certificate issued for the said apartment, plot or building, as the 
case may be. 

(11) Every allottee shall participate towards registration of the 
conveyance deed of the apartment, plot or building. as the case may be. as 

provided under sub-section (1) of section 15.'. 

15. In the principal Act, in section 36.- Au11,fl(Im.9,i Ifl 

4 01 

(i) for sub-sections (1), (2). (3) and (6), the following sub-sections Punjab Act 14 

shall be substituted, namely:- Of 1995. 

"(1) Any person or promoter or his agent registered 
under the Act, who, without reasonable cause, fails to comply 
with or contravenes the provisions of section 5 shall, on 
conviction, be punished with imprisonment fora minimum term 
of three years which my  extend to seven years and with 



PUNJAB GOVT. GAZ. (EXTRA). APRIL 16. 2021 144 

(CHTR 26, 1943 SAKA) 

minimum fine of rupees two lac, which may extend to rupees 
five lac. 

(2) Any promoter who fails to comply or contravenes 
any other provisions of this Act, other than that provided under 
section 5, and the rules made thereunder, shall be liable to a 
penalty which may extend upto five per cent of the cost of the 
estimated cost of the colony as determined by the competent 
authority. 

(3) Any estate agent who, without reasonable excuse. 
fails to comply with, or contravenes. any provision of this Act 
or of any rule made thereunder shall be liable to a penalty of 
ten thousand rupees for every day during which such default 
continues, which may cumulatively extend upto five percent 
cost of the plot or building, as the case nmy be, for which the 
sale or purchase has been facilitated. 

(6) The fine or penalty imposed under sub-sections 
(1), (2), (3) or (4) may be recovered as an arrcar of land 
revenue and out of the fine so recovered, the Judicial 
Magistrate may award such amount as he deems lit to the 
person from whom the advance or deposit was obtained by 
the promoter or the estate agent, as the case may be."; and 

(ii) after sub-section (6), the following sub-sections shall be added. 
namely:- 

'(7) Any promoter, who fails to comply with, or 
contravenes any of the orders or directions of the competent 
authority, shall be liable to a penalty for every day during which 
such default continues. which may cumulatively extend upto 

— five per cent of the estimated cost of the colony as determined 
by the competent authority. 

(8) Any promoter. who tails to coniph with, or 
contravenes any of the orders, decisions or directions of the 
Appellate Authority or the Revisional Authority, as the case 
may be, shall be punishable with imprisonment for a term which 
may extend up to three years or with fine for every day during 
which such default continues, which may cumulatively extend 
up to ten per cent of the estimated cost of the colony, or with 
both. 



PUNJAB GOVT. GAZ. (EXTRA). APRIL 16, 2021 145 

(CHTR 26, 1943 SAKA) 

(9) Any estate agent, who fails to comply with, or 
contravenes any of the orders or directions of the competent 
authority, shall be liable to a penalty for every day during which 
such default continues, which may cumulatively extend up to 
five percent of the estimated cost of plot, apartment or building. 
as the case may be, for which the sale or purchase has been 
facilitated, as determined by the competent iuth'.' ity. 

(10) Any estate agent, who fails to comply with, or 
contravenes any of the orders. decisions or directions of the 
Appellate Authority or the Revisional Authority, as the case 
may be, shall be punishable with imprisonment for a term which 
may extend up to one year or with fine for every day during 
which such defaukcontinues, which may cumulatively extend 
up to ten per cent of the estimated cost of plot. ap.trtment or 
building, as the case may be, for which the sate or purchase 
has been facilitated, or with both. 

(11) Any allottee, who ltils to comply with, or 
contravenes any of the orders, decisions or directions of the 
competent authority, shall be liable to a penalty for the period 
during which such default continues, which may cumulatively 
extend up to five per cent of the plot, apartment or building 
cost, as the case may be, as determined by the competent 
authority. 

(12) Any allottee, who fails to comply with, or 
contravenes any of the orders or directions of the Appellate 
Authority or the Revisional Authority, as the case may be, 
shall be punishable with imprisonment for a term which may 
extend up to one year or with fine for every day durmg which 
such default continues, which may cumulatively extend up to 
ten per cent of the plot, apartment or building cost. us the case 
may be, or with both.". 

S.K. AGGARWAL, 

Secretary to Government of Punjab. 

Department of Legal and Legislative Affairs. 

2274/4-2021/Pb. Govt. Press, S.A.S. lVagar 


	Page 1
	Page 2
	Page 3
	Page 4
	Page 5
	Page 6
	Page 7
	Page 8
	Page 9
	Page 10
	Page 11
	Page 12
	Page 13