In a major relief to homebuyers, the department of town and country planning (DTCP) has come up with a new policy to curb unauthorised retention of investors’ money by builders on account of registration charges.
Under the new policy, issued in the second week of March, developers will have to execute the conveyance deed within 15 days of receiving the registration charges from homebuyers. In case that’s not possible, the money should be refunded to allottees or builders could adjust the amount against other dues except upkeep charges.
Officials said the move is aimed at checking the misuse of investors’ money by builders. At present, in many cases developers delay the execution of conveyance deed for several years even after getting registration charges from homebuyers.
“Not any more. Developers will no longer be able to withhold the registration charges after its collection from allottees,” said a DTCP official. DTCP has also made it mandatory for builders to submit a certificate from a chartered accountant vouching that they are not withholding 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 licence, etc,” the official said.
DTCP’s planning officer Jaibir Sharma said there had been several instances 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,” he said.
“Under the new policy, 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, then a joint bank account will be opened in the names of the developer, RWA and the DTCP,” Sharma said.