Builders in Gurgaon can not hold back registration charges under new policy?

Q: Yes, yes per new policy by DTCP, developers in Gurgaon can not hold back registration amount.

Santosh TR,

30th March 2016

Legal in Gurgaon

dtcp

real estate developers

registration charges

department of town and country planning

new policy for builders in gurgaon

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Replies (2)

Yes, i appreciate this move too kaushik. At present, in many cases developers delay the execution of conveyance deed for many yrs even after getting registration charges from home buyers. With this move, not any more developers will no longer be able to withhold the registration charges after its collection from allottees.

Veena K,

30th March 2016

Comment

Hmm.....DTCP has also made it necessary for builders to submit a certificate from a chartered accountant confirming that they are not holding back any stamp duty charges collected from allottees.

In case, a builder fails to submit the certificate, the department will not grant approval of building plans, renewal of license etc.

Santosh TR,

30th March 2016

Very good move......earlier, there had been many examples of dispute between allottees, developers and the revenue department over delay in execution of conveyance deed. Some complaints reached the Allottee Grievance Redressal Forum and following its suggestions, the policy was issued.

Veena K,

30th March 2016

This policy has provision for opening of joint bank account in the names of the developers, RWA and the DTCP, in case the builder is unable to execute the conveyance deed within 15 days of collection of registration charges or fails to return the money.

Santosh TR,

30th March 2016

Yes, It will be a major relief for the home buyers. Now DTCP has come up with a new policy to stop unauthorized hold back of investors' money by builders on account of registration charges. Now, the developers will have to execute the conveyance deed within 15 days of receiving the registration charges from home buyers.

Veena K,

30th March 2016

Comment

It is also suggested in the new policy that in case that is not possible, the money should be refunded to allottees or builders could adjust the amount against other dues except maintenance charges. I think it is a nice move to aim at checking the misuse of investors' money by builders.

Kaushik Bardia,

30th March 2016