In exercise of the
powers conferred by Section 84 of the Real Estate (Regulation and Development)
Act, 2016 (Central Act 16 of 2016) the Government of Kerala, hereby makes the
following rules namely: CHAPTER I PRELIMINARY (1)
These
rules may be called the "Kerala Real Estate (Regulation and Development)
Rules, 2018". (2)
These
rules shall be applicable to whole State of Kerala. (3)
They
shall come into force at once. (1)
In
these rules, unless the context otherwise requires, (a)
"Act"
means the Real Estate (Regulation and Development) Act, 2016; (Central Act 16
of 2016) (b)
"Annexure"
means an annexure appended to these rules; (c)
"Authenticated
copy" shall mean a self-attested copy of any document required to be
provided by any person under these rules; (d)
"Authority"
means the Real Estate Regulatory Authority established by the Government of
Kerala under sub-section (1) of Section (20) of the Act; (e)
"Form"
means a form appended to these rules; (f)
"Government"
means the Government of Kerala; (g)
"Layout
plan" means a plan of the project depicting the division or proposed
division of land into plots, roads, open spaces, amenities, etc. and other
details as may be necessary; (h)
"Permit"
means a permission or authorisation in writing by the Secretary of the Local
authority concerned to carry out the work; (i)
"Project
land" means any parcel or parcels of land on which the project is or
proposed to be developed and constructed by a promoter; (j)
"Section"
means section of the Act. (k)
"Selection
Committee" means the Selection Committee constituted under Section 22 of
the Act in accordance with these rules. (2)
Words
and expressions used herein and not defined, but defined in the Act, shall have
the same meaning respectively assigned to them in the Act. CHAPTER II REAL ESTATE PROJECT (1)
The
promoter shall make an application as referred to in sub-section (1) of Section
4 of the Act in Form "A" to the Authority for Registration of the
real estate project for which all the Statutory Approvals and permits have been
obtained on or after the date of notification of commencement of Section 3 of
the Act and displaying it on the Website of Real Estate Regulatory Authority in
such manner prescribed by these regulations. (2)
In
the case of ongoing projects on the commencements of the Section 3 of Act and
for which the occupancy certificate has not been issued, the promoter shall
make an application in Form "A1" to the Authority for Registration of
the said project. (3)
The
application for registration referred to in sub-rule (1) and (2) shall be
submitted in triplicate, until the application procedure is made web based as
provided under sub-section (3) of Section 4 of the Act. (4)
The
promoter shall pay a registration fee at the time of application for
registration by way of a demand draft drawn on any scheduled bank as directed
by the authority, (i)
In
the case of plot for a sum calculated at the rate of rupees ten per square
meter of plot area. (ii)
In
the case of building, for a sum of, (i)
rupees
twenty five per square meter of total floor area for all residential projects
for which application is made in Form 'A-1' as per sub-rule (2) of Rule 3. (ii)
rupees
fifty per square meter of total floor area for all residential projects for
which application is made in Form 'A' as per sub-rule (2) of Rule 3. (iii)
rupees
hundred per square meter of total floor area for commercial or any other
projects. (iii)
for
a real estate project involving only development of land into plots without any
construction of buildings, the registration fee shall be as provided in clause
(a) of sub-rule (4) to be paid along with the application. (iv)
for
a project involving construction and sale of building, the total registration
fee for the project shall be the sum of registration fee for plot and
registration fee for buildings as computed as provided in clause (a) and (b)
of, sub-rules 4. (v)
floor
area as per these rules shall be, the total floor area as specified in the
permit issued by the competent authority. (5)
The
promoter shall enclose along with the application form the documents as
specified in sub-section (2) of Section 4 of the Act. (6)
The
declaration to be submitted under clause (I) of sub-section (2) of Section 4 of
the Act, shall be as per Form 'B', which shall include a declaration stating
the details as mentioned in sub-clause (A) to (F) of clause (I) of sub-section
(2) of Section 4 of the Act. (7)
In
case the promoter applies for withdrawal of application for registration of the
project before the expiry of the period of 30 days provided under sub-section
(1) of Section 5, registration fee to the extent often percent paid under
sub-rules (3) above, or Rupees Fifty Thousand, whichever is more, shall be
retained as processing fee by the regulatory authority and the remaining amount
shall be refunded to the promoter within thirty days from the date of such
withdrawal. (1)
The
promoter shall furnish the following additional information and documents,
along with those specified under the relevant sections of the Act, along with
the application for registration of the real estate project with the authority
namely: (i)
authenticated
copy of the PAN card of the promoter; (ii)
audited
balance sheet of the promoter for the preceding financial year and income tax
returns of the promoter for three preceding financial years; (iii)
the
number of parking areas available in the said real estate project; (iv)
copy
of the legal title deed showing the title of the promoter to the land on
development is proposed to be developed along with legally valid documents with
authentication of such title, if such land is owned by another person; (v)
the
details of encumbrances on the land on which development is proposed including
any rights, title, interest or name of any party in or over such land along
with details; (vi)
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; (vii)
Such
other information and documents, as specified in the 'Form A' or 'Form A-1' as
the case may be. (viii)
Such
other information and documents, as may be specified by regulations made by the
authority. (1)
Upon
the notification for commencement of sub-section (1) of Section 3, promoters of
all ongoing projects which have not received occupancy certificate shall,
within the time specified in the said sub-section, make an application to the
Authority in the form and manner provided in sub-rule (2) of Rule 3. (2)
The
promoter shall disclose all project details as required under the Act and the rules
and regulations made thereunder, including the status of the project and the
extent of completion. (3)
The
promoter shall disclose the size of the apartment based on carpet area even if
earlier sold on any other basis such as super area, super built up area, built
up area etc. which shall not affect the validity of the agreement entered into
between the promoter and the allottee to that extent. (4)
In
case of plot development the promoter shall disclose the area of the plot being
sold to the allottees. (1)
For
the purposes of sub-clause (D) of clause (I) of sub-section (2) of Section 4,
the land cost shall be the cost incurred by the promoter, whether as an
outright purchase, lease charges etc. (2)
For
the purposes of sub-clause (D) of clause (I) of sub-section (2) of Section 4,
the construction cost shall be the cost incurred by the promoter, towards the
on-site expenditure and off site expenditure for the physical development of
the project. (1)
Upon
the registration of a project as per Section 5 read with Rule 3, the Authority
shall issue a registration certificate with a registration number in Form 'C to
the promoter. (2)
In
case of rejection of the application as per Section 5 the authority shall
inform the applicant in Form 'D'. Provided that if the application is
incomplete in any respect, the authority may at its discretion, direct the
promoter to rectify such application within a period of fifteen days or any
such period as deemed fit to the authority; before rejecting the application as
per Section 5 and Rule (2) above. (1)
The
registration granted under Section 5 of the Act may be extended as per Section
6 of the Act on an application made by the promoter in Form 'E' which shall not
be less than three months prior to the expiry of the registration granted. (2)
The
application for extension of registration shall be accompanied with a demand
draft drawn on any scheduled bank, for an amount equivalent to half the
registration fee as prescribed under sub-rule (4) of Rule 3 along with an
explanatory note setting out the reasons for delay in the completion of the
project and the need for extension of registration for the project, along with
documents supporting such reasons: Provided that where extension of registration
is due to force majeure the authority may at its discretion waive the fee for
extension of registration fully or by part. (3)
Extension
of registration of the project for such time as it considers necessary which
shall, in aggregate, not exceed a period of one year. (4)
In
case of extension of registration, the authority shall inform the promoter
about the same in Form 'F' and in case of rejection of the application for
extension of registration the authority shall, after giving an opportunity to
the applicant to be heard in the matter as per second proviso of Section 6,
inform the promoter about the same in Form 'D'; (1)
Upon
the revocation of registration of a project as per Section 7 of the Act the
authority shall inform the promoter about such revocation in Form 'D'. (2)
Upon
the lapse of registration or on revocation of the registration under the Act, Authority
shall take necessary action as specified in Section 7 and 8 of the Act. (1)
For
the purpose of sub-section (2) of Section 13, the agreement for sale shall be
in the form in Annexure 'A'. (2)
Any
application letter, allotment letter, agreement or any other document signed by
the allottee, in respect of the apartment, plot or building, prior to the
execution and registration of the agreement for sale for such apartment, plot
or building, as the case may be, shall not be construed to limit the rights and
interests of the allottee under the agreement for sale or under the Act or the
rules or the regulations made there under. CHAPTER III REAL ESTATE AGENT (1)
Every
real estate agent required to register as per sub-section (2) of Section 9 of
the Act shall make an application in writing to the Authority in Form G along
with the following documents, namely: (a)
details
of his enterprise including its name, registered address, type of enterprise
(proprietorship, societies, partnership, companies etc.); (b)
particulars
of registration including the bye-laws, memorandum of association, articles of
association etc. as the case may be; (c)
photograph
of the real estate agent if it is an individual and the photograph of the
partners, directors etc. in case of other entities; (d)
authenticated
copy of the PAN card; (e)
income
tax returns filed under the provisions of the Income Tax Act, 1961 (Central Act
43 of 1961) for three financial years preceding the application or in case the
applicant was exempted from filing returns under the provisions of the Income
Tax Act, 1961 (Central Act 43 of 1961) for any of the three year preceding the
application, a declaration to such effect; (f)
authenticated
copy of the address proof of the place of business; and (g) such other
information and documents, as may be specified by regulations. (h) such other
information as may be required in Form "G" of these rules. (2) The
real estate agent shall pay a registration fee at the time of application for
registration by way of a demand draft drawn on any scheduled bank, for a sum of
rupees twenty five thousand in case of the applicant being an individual; or
rupees two lakh fifty thousand only in case of the applicant being anyone other
than an individual. (1)
On
receipt of the application as per sub-section (2) of Section 9 of the Act read
with Rule 11, the Authority shall within a period of thirty days either grant registration
to the real estate agent or reject the application, as the case may be: Provide (sic Provided) that the Authority may
grant an opportunity to the real estate agent to rectify the defects in the
application within such time period as may be specified by it. (2)
Upon
the registration of a real estate agent as per Section 9 read with Rule 10, the
Regulatory Authority shall issue a registration certificate with a registration
number as per Form H to the real estate agent. (3)
In
case of rejection of the application, the Authority shall inform the applicant
in Form 1 (4)
The
registration granted under this rule shall be valid for a period of five years. (1)
The
registration granted under Section 9, of the Act may be renewed as per Section
6, of the Act on an application made by the real estate agent in Form 'J' which
shall not be less than three months prior to the expiry of the registration
granted. (2)
The
application for renewal of registration shall be accompanied with a demand
draft drawn on any scheduled bank, for a sum of rupees five thousand in case of
the real estate agent being an individual or rupees fifty thousand in case of
the real estate agent being anyone other than an individual. (3)
The
real estate agent shall also submit all the updated documents set out in
clauses (a) to (f) of Rule 10 at the time of application for renewal. (4)
In
case of renewal of registration, the authority shall inform the real estate
agent about the same in Form K and in case of rejection of the application for
renewal of registration the authority, shall inform the real estate agent in
Form I. Provided that no application for renewal of
registration shall be rejected unless the applicant has been given an
opportunity of being heard in the matter. (5)
The
renewal of registration of the real estate agent shall be granted provided that
the real estate agent remains in compliance with the provisions of the Act and
the rules and regulations made thereunder. (6)
The
renewal granted under this rule shall be valid for a period (sic of) five
years. The Authority may, due to reasons specified
under sub-section (7) of Section 9 of the Act, revoke the registration granted
to the real estate agent or renewal thereof, as the case may be, and intimate
the real estate agent of such revocation Form T. (1)
The
real estate agent shall maintain and preserve books of account, records and
documents in accordance with the provisions of the Income Tax Act, 1961.
(Central Act 43 of 1961) (2)
The
agent shall also maintain such books and records as specified by the
regulations issued by the authority. The real estate agent shall provide
assistance to enable the allottee and promoter to exercise their respective
rights and fulfill their respective obligations at the time of booking and sale
of any plot, apartment or building, as the case may be. CHAPTER IV DETAILS TO BE
PUBLISHED ON THE WEBSITE OF THE AUTHORITY (1)
For
the purpose of clause (b) of Section 34, of the Act the regulatory authority
shall ensure that the following information shall be made available on its
website in respect of each project registered: (a)
Details
of the promoter including the following: (i)
Promoter
or Group Profile:- (A)
A
brief detail of his enterprise including its name, registered address, type of
enterprise (proprietorship, limited liability partnership, society, company
etc.) and the particulars of registration and in case of a newly incorporated
or registered entity, brief details of the parent entity including its name,
registered address, type of enterprise (proprietorship, societies, limited
liability partnership, partnership, companies etc.); (B)
Details
of promoter up to 5 years including details of projects launched by the
promoter in the past and in case of a newly incorporated or registered entity
projects launched by the parent entity, other relevant experience or details as
authority finds appropriate etc. (C)
Name,
address, contact details and photograph of the promoter in case an individual
and the name, address, contact details and photograph of the chairman, directors,
partners, as the case may be and that of the authorised persons. (ii)
Track
record of the promoter: (A)
number
of years of experience of the promoter or parent entity in real estate
construction in the State; (B)
number
of years of experience of the promoter or parent entity in real estate
construction in other States or union territories; (C)
number
of completed projects and area constructed till date; (D)
number
of ongoing projects and proposed area to be constructed; (E)
details
and profile of ongoing and completed projects for the last 5 years as provided
under clause (b) of sub-section (2) of Section 4. (iii)
Litigations:
Details of past or ongoing litigations in relation to the real estate project. (iv)
Website: (A)
Web
link to the developer or group website; (B)
Web
link to the project website. (b)
Details
of the real estate project including the following: (i)
advertisement
and prospects issued in regard to this project. (ii)
compliance
and registration: (A)
web
link to the developer or group website; authenticated copy of the approval(s)
from the competent authority as provided under clause (c) of sub-section (2) of
Section 4; (B)
the
sanctioned plan, layout plan and specifications of the project or the phase
thereof, and the whole project as sanctioned by the competent authority as
provided under clause (d) of sub-section (2) of Section 4; (C)
details
of the registration granted by the Authority. (iii)
apartment
and garage related details: (A)
details
of the number, type, carpet area, area of exclusive balcony or verandah, area
of exclusive open terrace, share of common area, floor area etc. of each
apartments for sale in the project as provided under clause (h) of sub-section
(2) of Section 4; (B)
Details
of the number and areas of garage for sale in the project as provided under
clause (i) of sub-section (2) of Section 4; (C)
details
of the number of open parking areas available in the real estate project. (iv)
registered
Agents: Names and addresses of real estate agents as provided under clause (j)
of sub-section (2) of Section 4. (v)
Consultants:
Details, including name and addresses, of contractors, architect and structural
engineers and other persons concerned with the development of the real estate
project as provided under clause (k) of sub-section (2) of Section 4, such as: (A)
name
and address of the firm (B)
names
of promoters (C)
year
of establishment (D)
names
and profile of key projects completed (vi)
Location:
The location details of the project, with clear demarcation of land dedicated
for the project along with its boundaries including the latitude and longitude
of the end points of the project as provided under clause (f) of sub-section
(2) of Section 4; (vii)
Development
Plan: (A)
The
plan of development works to be executed in the proposed project and the
proposed facilities to be provided thereof including fire fighting facilities,
drinking water facilities, emergency evacuation services, use of renewable
energy etc. as provided under clause (e) of sub-section (2) of Section 4; (B)
Amenities:
A detailed note explaining the salient features of the proposed project
including access to the project, design for electric supply including street
lighting, water supply arrangements and site for disposal and treatment of
storm and sullage water, any other facilities and amenities or public health
services proposed to be provided in the project; (C)
Charts
and Project schedule: The plan of development works to be executed in the
project and the details of the proposed facilities to be provided thereof (c)
Financial
details of the promoter: (i)
The
Authenticated copy of the PAN card of the promoter; (ii)
The
annual report including audited profit and loss account, balance sheet, cash
flow statement, directors report and the auditor's report of the promoter for
the immediately preceding three financial years and where annual report is not
available then the audited profit and loss account, balance sheet, cash flow
statement and the auditor's report of the promoter for the immediately
preceding three financial years and in case of newly incorporated or registered
entity such information shall be disclosed for the parent entity; (d)
The
promoter shall upload, the following updates on the webpage for the project,
within seven days from the expiry of each quarter: (i)
List
of number and types of apartments or plots, as the case may be booked; (ii)
List
of number of garages/covered parking booked; (iii)
Status
of the project: (A)
Status
of construction of each building with photographs; (B)
Status
of construction of each floor with photographs; (C)
Status
of construction of internal infrastructure and common areas with photographs. (iv)
Status
of Approval (A)
Approval
received; (B)
Approvals
applied and expected date of receipt; (C)
Approvals
to be applied and date planned for application; (D)
Modifications,
amendment or revisions, if any, issued by the competent authority with regard
to any license, permit or approval for the project. (E)
Details
of application for occupancy certificate or completion certificate submitted to
the competent authority including date of submission and expected date of
clearance. (e)
Downloads
to be provided in the website: (i)
Approvals: (A)
No
Objection certificates as applicable or declaration to the effect that such No
Objection Certificate is not required. (i)
Consent
to Establish and operate; (ii)
Environmental
Clearance; (iii)
Fire
NOC; (iv)
Permission
from Water and Sewerage department; (v)
Height
clearance from Airport Authority of India; (vi)
Such
other approvals as may be required and obtained for the project. (B)
Authenticated
copy of the license or land use permission, building sanction plan and other
relevant order(s) from the competent authority obtained in accordance with the
laws applicable for the project, and where the project is proposed to be
developed in phases, an authenticated copy of the license or land use
permission, building sanction plan and building permit for each of such phases; (C)
Authenticated
copy of the site plan or site map showing the location of the project land
along with names of revenue estates, village and block details, survey numbers,
and area of each parcels of the project land; (D)
Authenticated
copy of the layout plan of the project or the phase thereof, and also the
layout plan of the whole project as sanctioned by the competent authority; (E)
Floor
plans for each tower and block including clubhouse, amenities and common areas; (F)
Any
other permission, approval, or licence that may be required under applicable
law; (G)
Authenticated
copy of occupancy certificate including its application. (ii)
Legal
Documents: (A)
Details
including the proforma of the application form, allotment letter, agreement for
sale and the conveyance deed; (B)
Authenticated
copy of the legal title deed reflecting the title of the promoter to the land
on which development is proposed to be developed along with legally valid
documents with authentication of such title, if such land is owned by another
person; (C)
Land
Title Search Report from an advocate having experience of at least ten years in
land related matters; (D)
Details
of encumbrances on the land on which development is proposed including any
rights, title, interest or name of any party in or over such land along with
details or no encumbrance certificate from an advocate having experience of
at-least ten years in land related matters; (E)
Where
the promoter is not the owner of the land on which development is proposed,
details of the consent of the owner of the land along with a copy of the collaboration
agreement, development agreement, joint development agreement or any other
agreement, as the case may be, entered into between the promoter and such owner
and copies of title anotherdocuments reflecting the title of such owner on the
land proposed to be developed; (F)
Sanction
letters: (i)
From
banks for construction finance; (ii)
From
banks for home loan tie-ups. (f)
details:
Contact address, contact numbers and email-ids of the promoter, other officials
and consultants handling the project; (g)
Such
other information or documents as may be deemed appropriate by the authority
for the benefit of the allottees and prospective buyers including any documents
or forms submitted by the promoter; (h)
Such
other documents or information as may be specified by the Act or the rules and
regulations made thereunder; (2)
For
the purpose of clause (c) of Section 34, the authority shall maintain a
database and ensure that the information specified therein shall be made
available on its website in respect of each project revoked or penalised, as
the case may be; (3)
For
the purpose of clause (d) of Section 34, the authority shall ensure that the
following information shall be made available on its website in respect of each
real estate agent registered with it or whose application for registration has
been rejected or revoked: (a)
For
real estate agents registered with the Authority: (i)
Registration
number and the period of validity of the registration of the real estate agent
with the authority; (ii)
Brief
details of his enterprise (in case of agents other than individuals) including
its name, registered address, type of enterprise (proprietorship, societies,
partnership, companies etc.); (iii)
particulars
of registration (in case of agents other than individuals) including the
bye-laws, memorandum of association, articles of association etc. as the case
may be; (iv)
photograph
of the real estate agent if it is an individual and the photograph of the
partners, directors etc. in case of agents other than individuals; (v)
authenticated
copy of the PAN Card (vi) income tax returns filed under the provisions of the
Income Tax Act, 1961 (Central Act 43 of 1961) for three financial years
preceding the application or in case the applicant was exempted from filing
returns under the provisions of the Income Tax Act, 1961 for any of the three
year preceding the application, a declaration to such effect; (vi)
authenticated
Copy of address proof of the place of business and the contact address, contact
numbers and email-ids of the real estate agent and other officials responsible. (b)
in
case of applicants whose application for registration as a real estate agent
have been rejected or real estate agents whose registration has been revoked by
the authority: (i)
registration
number and the period of validity of the registration of the real estate agent with
the regulatory authority; (ii)
brief
details of his enterprise including its name, registered address, type of
enterprise (proprietorship, societies, partnership, companies etc.); (iii)
photograph
of the real estate agent if it is and individual and the photograph of the
partners, directors etc. in case of other persons; (c)
Such
other documents or information as may be specified by the Act or regulations
made thereunder. (d)
Such
other information or documents as may be deemed appropriate by the authority
for the benefit of the public including any documents or forms submitted by the
real estate agent. (4)
The
authenticity of the details or documents which are submitted by the promoter or
real estate agent and uploaded in the website or which are uploaded in the
website by the promoter or the real estate agent shall be the sole
responsibility of the promoter or the real estate agent as the case may be and
the promoter or the real estate agent shall as the case may be ensure
correctness of the same in all respects at all given times. (5)
any
subsequent change in any of the details made available in the website shall be
immediately bought to the notice of the authority by the concerned promoter or
real estate agent as the case may be. (6)
the
Authority shall maintain a back-up, in digital form, of the contents of its
website in terms of this rule, and ensure that such back-up is updated on the
last day of each month. Provided that till such time the website of
the authority is fully functional, the authority may maintain the above documents
or records at the office of the authority and further make available the same
in the website as and when the website is completely operational. CHAPTER V RATE OF INTEREST
PAYABLE BY PROMOTER AND ALLOTTEE AND TIMELINES FOR REFUND (1)
The
annual rate of interest payable by the promoter to the allottee or by the
allottee to the promoter, as the case may be, shall be the State Bank of
India's Benchmark Prime Lending Rate plus two percent and shall be computed as
simple interest. (2)
In
case of payment from the promoter due to the allottee, the interest on amount
due shall be computed at the rate as per sub-rule (1) above from the agree date
of payment of such amount from the allottee to the promoter as per the agreed
payment schedule as part of the agreement of construction or sale. (3)
In
case of payment from the allottee to the promoter, the interest on amount due
shall be computed at the rate as per sub-rule (1) above from the agreed date of
payment of such amount from the allottee to the promoter as per the agreed
payment schedule as part of the agreement of construction or sale. Any refund of money along with the applicable
interest and compensation, if any, payable by the promoter in terms of the Act
or the rules and regulations made thereunder, shall be payable by the promoter
to the allottee within forty-five days from the date on which such refund along
with applicable interest and compensation, if any, becomes due. CHAPTER VI REAL ESTATE
REGULATORY AUTHORITY (1)
As
and when vacancies of Chairperson or a Member in the regulatory authority exist
or arise, or are likely to arise, the Government may make a reference to the
Selection Committee in respect of the vacancies to be filled, as per the
provisions of Section 21 of Act. (2)
The
Selection Committee may, for the purpose of selection of the Chairperson or a
Member of the authority, follow such procedure as deemed fit to suggest a panel
of names possessing the requisite qualification and experience and suitable for
being considered for appointment as Chairperson or Member of the Regulatory
Authority from the panel of names suggested by a Search Committee (3)
A
Search Committee may be constituted by the selection committee to suggest a
panel of names possessing the requisite qualification and experience and
suitable for being considered for appointment as Chairperson or Member of the
Authority. (4)
the
Selection Committee shall select two persons for each vacancy and recommend the
same to the Government. (5)
The
Selection Committee shall make its recommendation to the Government of Kerala
within a period of thirty days from the date of reference made under sub-rule
(3). (6)
The
Government shall within thirty days from the date of the recommendation by the
Selection Committee, appoint one of the two persons recommended by the
Selection Committee for the vacancy of the Chairperson or Member, as the case
may be. (1)
(a)
The Chairperson and whole-time Members of the Authority shall be paid such
salary and allowances as may be fixed by the Government. However if the
Chairperson or a Member so appointed is or was in the service of the State
Government or Central Government or any authority thereunder, he shall be paid
a monthly salary equivalent to the drawn salary at the post held by such
person, prior to his appointment as Chairperson or a Member, as the case may
be, of the Authority: Provided that if the Chairperson or a Member
of the Authority before the date of assuming office as Chairperson or a Member,
as the case may be, was in receipt of or being eligible to receive any pension
in respect of any previous service under the Central Government or the State
Government or any authority thereunder, his salary in respect of service as a
Chairperson or as a Member, as the case may be, shall be reduced by the amount
of that pension and dearness relief thereon, including any portion of the
pension which may have been commuted. (b) Every part-time member, who is not a
servant of the Government, shall be paid a sitting fee for each day he attends
the meetings of the authority as may be determined by the Government from time
to time and they shall not be entitled to any allowance relating to house and
vehicle. (c) The Government may review and enhance the
salary of Chairperson and Members periodically as deemed fit by the Government. (2)
The
Chairperson and every other Member shall be entitled to thirty days of earned
leave for every year of service. (3)
The
other allowances and conditions of service of the Chairperson and the whole
time Members shall be as per the usual terms and conditions of the Kerala
Government Service and as per notifications issued by the Government from time
to time. (1)
The
administrative powers of the Chairperson of the Authority shall include making
decisions with regard to the following and the Chairperson shall have full
administrative powers in the following matters: (a)
officiating
against sanctioned posts; (b)
all
matters regarding disbursement of wages and salaries, other emoluments to the
chairman, members, officers and staff of the authority. (c)
acceptance
of resignations by officer or employee engaged on contract basis or on daily
wages; (d)
all
matters with regard to raising of public awareness regarding the provisions of
the authority through any electronic, audio, visual, print or social media
including issue of advertisements, press conferences, press release and all
such measures which may be deemed necessary for the benefit of the public. (e)
all
Purchases of office infrastructure including computers, peripherals, other
appliances, stationery, furniture etc. which are essential for the functioning
of the authority. (f)
all
matters with regard to works undertaken at the office of the authority
including office furnishings, partitioning, other improvement works etc. (g)
all
matters with regard to taking up or conducting any studies or research
activities in any stream or subject, which are intended for the improvement,
development or refinement of the real estate sector or related sectors
including engaging of consultants for such studies, deputing officers for such
studies, sanctioning of all expenditures concerned with such studies etc. (h)
authorization
of tours to be undertaken by Chairman, Members, officers and staff of the
authority; (i)
all
matters in relation to reimbursement of medical claims; (j)
all
matters in relation to grant or rejection of leaves; (k)
permission
for short term or long term hiring of vehicles for official use; (l)
nominations
for attending workshops, seminars, conferences and training programmes in India
or abroad and allowance to be granted for the same; (m)
permission
for invitation of guests to carry out training courses; (n)
All
matters pertaining to staff welfare expenses; (o)
sanction
scrapping or write-off of capital assets which due to normal wear and tear have
become unserviceable or are considered beyond economical repairs; (p)
all
matters relating to disciplinary action against any Member, officer or
employee; (q)
all
matters with regard to the administration of "Real Estate Regulatory
Fund" created as per sub-section (1) of Section 75; with the approval of
the committee constituted to administer such fund as per sub-section (3) of
Section 75 including the powers to keep the fund in any appropriate account(s)
such as treasury savings bank or any scheduled bank in public sector. (r)
powers
to delegate any of the above mentioned powers to any member or officer of the
regulatory authority as the chairperson may deem fit. (s)
all
matters pertaining to staff strength, wages and salaries structures,
emoluments, perquisites and personnel policies; (t)
all
matters pertaining to creation and abolition of posts; (u)
all
matter pertaining to appointments, promotions and confirmation for all regular
employees. (v)
acceptance
of resignations by any Member, officer or employee; (w)
purchase
of new vehicles for the authority. (x)
any
other powers that may be required for the efficient functioning of the
Authority and enforcement of the provisions of the Act, Rules and Regulations. (1)
The
conditions of service of the officers and employees of the Authority and any
other category of employees in the matter of pay, allowances, leave, joining
time, joining time pay, age of superannuation and other conditions of service,
shall be regulated in accordance with such rules and regulations as are, from
time to time, applicable to officers and employees of the Government and
drawing the corresponding scales of pay; (2)
Consultants
or experts that may be engaged by the Authority: (a)
shall
be paid a monthly honorarium as may be determined by the Government of Kerala
from time to time; (b)
the
consultant or expert shall not be deemed to be regular members of the staff
borne on the establishment of the Authority; (c)
the
consultant or expert may be appointed for a tenure of one year, extendable on
year (d)
the
terms of their appointment may be terminated by the Authority by serving one
month's notice. (3)
The
Government shall have power to relax the provisions of any of these rules in
respect of any class or category of officers or employees or consultants and
experts, as the case may be. (1)
The
office of the authority shall be located at such place as may be determined by
the Government. (2)
The
working days and office hours of the authority shall be the same as that of the
Government of Kerala. (3)
The
official common seal and emblem of the authority shall be such as the
Government of Kerala may specify. (1)
In
addition to the matters specified in clauses (i) to (iii) of sub-section (2) of
Section 35 of the Act the authority shall have the powers as vested in
sub-section (2) of Section 35 in the following matters: (a)
Require
the promoter, allottee or real estate agent to furnish in writing such
information or explanation or produce such documents within such reasonable
time, as it may deem necessary; (b)
Requisitioning,
subject to the provisions of Sections 123 and 124 of the Indian Evidence Act,
1872 (1 of 1872), any public record or document or copy of such record or
document from any office. (2)
The
authority may call upon such experts or consultants from the fields of
economics, commerce, accountancy, real estate, competition, construction,
architecture or engineering or from any other discipline as it deems necessary,
to assist the authority in the conduct of any inquiry or proceedings before it. (3)
On
receipt of the application in prescribed form and complete in all respects
under Section 4 read with Rule 3 for registration of a project, the Authority
may review the documents submitted along with the application under Rule 3 and
enquire, inter-alia, into the following matters and such other matters, as it
may consider necessary, prior to grant of registration within the time
prescribed under sub-section (1) of Section 5, namely: (a)
the
nature of rights and interest of the promoter to the land which is proposed to
be developed; (b)
extent
and location of area of land proposed to be developed; (c)
layout
plan of the project; (d)
financial,
technical and managerial capacity of the promoter to develop the project; (e)
plan
regarding the development works to be executed in the project; and (f)
conformity of development of the project with neighboring areas. (4)
The
Authority may in the interest of the allottees, enquire into the payment of
amounts imposed as penalty, interest or compensation, paid or payable by the
promoter, in order to ensure that the promoter has not: (a)
withdrawn
the said amounts from the account maintained as provided under sub-clause (D)
of clause (I) of sub-section (2) of Section 4; or (b)
Used
any amounts paid to such promoter by the allottees for the that real estate
project for which the penalty, interest or compensation is payable, or any
other real estate project; (c)
Recovered
the amounts paid as penalty, fine or compensation from the allottees of the
relevant real estate project or any other real estate project. Subject to the provisions of sub-section (1)
of Section 40, the recovery of the amounts due as arrears of land revenue shall
be carried out as per the provisions of Revenue Recovery Act, 1968 (Act 15 of
1968). For the purpose of sub-section (2) of Section
40, every order passed by the adjudicating officer, authority or Appellate
Tribunal, as the case may be, under the Act or the rules and regulations made
thereunder, shall be enforced by the adjudicating officer, Authority or the
Appellate Tribunal in the same manner as if it were a decree or order made by
the principal Civil Court in a suit pending therein and it shall be lawful for
the adjudicating officer, regulatory authority or Appellate Tribunal, as the
case may be, in the event of its inability to execute the order, send such
order to the principal Civil Court, to execute such order either within the
local limits of whose jurisdiction the real estate project is located or in the
principal Civil Court within the local limits of whose jurisdiction the person
against whom the order is being issued, actually and voluntarily resides, or
carries on business, or personally works for gain. CHAPTER VII REAL ESTATE
APPELLATE TRIBUNAL (1)
Every
appeal filed under sub-section (1) of Section 44 shall be accompanied by a fee
of "rupees one thousand" in the form of a demand draft drawn on a
nationalized bank in favour of the Appellate Tribunal or as specified by the
regulations or orders issued by the authority or Appellate Tribunal, and
payable at such station where the seat of the said Appellate Tribunal is
situated or (2)
Every
appeal shall be filed Form 'L' along with the following documents: (a)
an
attested true copy of the order against which the appeal is filed; (b)
copies
of the documents relied upon by the appellant and referred to in the appeal; (c)
an
index of the documents. (3)
Procedure
for filing the appeal shall be as decided by the Appellate Tribunal. (1)
As
and when vacancies of a Member (Judicial Member & Technical or
Administrative Member) in the Appellate Tribunal exist or arise, or are likely
to arise, the Government may make a reference to the Selection Committee in
respect of the vacancies to be filled. (2)
The
Selection Committee may, for the purpose of selection of the Member of the
Appellate Tribunal, follow such procedure as deemed fit including the
appointment of a search committee consisting of such persons as the Selection
Committee considers appropriate to suggest a panel of names possessing the
requisite qualification and experience and suitable for being considered for
appointment as Member of the Appellate Tribunal. (3)
The
Selection Committee shall select two persons for each vacancy and recommend the
same to the Government. (4)
The
Selection Committee shall make its recommendation to the Government within a
period of sixty days from the date of reference made under sub-rule (1). (5)
The
Government shall within thirty days from the date of the recommendation by the
Selection Committee, appoint one of the two persons recommended by the
Selection Committee for the vacancy of the Member. (1)
The
salaries and allowances payable to the Chairperson and Members of the Appellate
Tribunal shall be as follows: (a)
the
Chairperson shall be paid a monthly salary equivalent to the last drawn salary
by such person, as a Judge of a High Court; (b)
the
whole-time Member shall be paid a monthly salary equivalent to the last drawn
salary at the post held by such person, prior to his appointment as a Member of
the Appellate Tribunal; (c)
every
full-time Member, who is not a servant of the Government, shall be paid a
monthly salary equivalent to the Additional Secretary to the Government of
India; (d)
every
part-time Member, who is not a servant of the Government, shall be paid a
sitting fee for each day he attends the meetings of the Appellate Tribunal as
may be determined by the Government of Kerala, from time to time. (2)
The
Chairperson and every other Member shall be entitled to thirty days of earned
leave for every year of service. (3)
The
other allowances and conditions of service of the Chairperson and the wholetime
Member shall be as per the usual terms and conditions of the Kerala Government
Service and as per notification issued by the Government of Kerala from time to
time. (1)
In
the event of the Government becoming aware of occurrence of any of the
circumstances specified in clause (d) or clause (e) of sub-section (1) of
Section 26 in case of a Chairperson or Member of the authority or as specified
under sub-section (1) of Section 49 in case of a Chairperson or Member of the
Appellate Tribunal, by receipt of a complaint in this regard or suo motu, as
the case may be, the Government shall make a preliminary scrutiny with respect
to such charges against the Chairperson or any Member of the regulatory
authority or Appellate Tribunal, as the case may be. (2)
If,
on preliminary scrutiny, the Government considers it necessary to investigate
into the allegation, it shall place the complaint, if any, together with
supporting material as may be available, before a Judge of the High Court. (3)
The
Government shall forward to the Judge, copies of (a)
The
statement of charges against the Chairperson or Member of the regulatory
authority or Appellate Tribunal, as the case may be; and (b)
Material
documents relevant to the inquiry. (4)
The
Chairperson or Member of the Authority or Appellate Tribunal, as the case may
be, shall be given a reasonable opportunity of being heard with respect to the
charges within the time period, as may be specified, in this behalf by the
Judge. (5)
Where
it is alleged that the Chairperson or Member of the Appellate Tribunal is
unable to discharge the duties of his office efficiently due to any physical or
mental incapacity and the allegation is denied, the Judge may arrange for the
medical examination of the Chairperson or Member of the Appellate Tribunal. (6)
After
the conclusion of the investigation, the Judge shall submit his report to the
Government stating therein his findings and the reasons thereof on each of the
articles of charges separately with such observations on the whole case as he
thinks fit. (7)
Thereafter,
the Government shall in consultation with the Chief Justice of the High Court
decide to either remove or not to remove the Chairperson or Member of the
regulatory authority or Appellate Tribunal, as the case may be. (1)
The
conditions of service of the officers and employees of the Appellate Tribunal
and any other category of employees in the matter of pay, allowances, leave,
joining time, joining time pay, age of superannuation and other conditions of
service, shall be regulated in accordance with such rules and regulations as
are, from time to time, applicable to officers and employees of the Government
and drawing the corresponding scales of pay; (2)
The
Government shall have power to relax the provisions of any of these rules in
respect of any class or category of officers or employees or consultants and
experts, as the case may be. (1)
In
addition to the matters specified in clauses (a) to (f) of sub-section (4) of
Section 53 the Appellate Tribunal shall have the powers as vested in
sub-section (4) of Section 53 to call upon such experts or consultants from the
fields of economics, commerce, accountancy, real estate, competition,
construction, architecture or engineering or from any other discipline as it
deems necessary, to assist the Appellate Tribunal in the conduct of any inquiry
or proceedings before it. The administrative powers of the Chairperson
of the Appellate Tribunal shall include making decisions with regard to the
following and the Chairperson shall have full administrative powers in the
following matters: (a)
officiating
against sanctioned posts; (b)
all
matters regarding disbursement of wages and salaries, other emoluments to the
members, officers and staff of the Appellate Tribunal. (c)
all
matters with regard to selection and posting of officers and staff on contract
basis or on daily wages against such sanctioned posts. (d)
acceptance
of resignations by any member officer or employee. (e)
purchase
of office infrastructure including computers, peripherals, other appliances,
stationery, furniture etc. which are essential for the functioning of the
Appellate Tribunal. (f)
all
matters with regard to works undertaken at the office of the Appellate Tribunal
including office furnishings, partitioning, other improvement works etc. (g)
authorization
of tours to be undertaken by any Member, officer or employee within and outside
India and allowance to be granted for the same; (h)
all
matters in relation to reimbursement of medical claims; (i)
all
matters in relation to grant or rejection of leaves; (j)
permission
for long term and short term hiring of vehicles for official use; (k)
nominations
for attending seminars, conferences and training courses in India or abroad and
allowance to be granted for the same; (l)
permission
for invitation of guests to carry out training course; (m)
all
matters pertaining to staff welfare expenses; (n)
sanction
scrapping or write-off of capital assets which due to normal wear and tear have
become unserviceable or are considered beyond economical repairs; (o)
all
matters relating to disciplinary action against any Member, officer or
employee; (p)
powers
to delegate any of the above mentioned powers to any member or officer of the
appellate tribunal as the chairperson may deem fit; (q)
all
matters pertaining to staff strength, wages and salaries structures,
emoluments, perquisites and personnel policies; (r)
all
matters pertaining to creation and abolition of posts; (s)
all
matter pertaining to appointments, promotions and confirmation for all regular
employees. (t)
purchase
of new vehicles for the Appellate Tribunal. (u)
any
other powers that may be required for the efficient functioning of the
Appellate Tribunal and enforcement of the provisions of the Act, Rules and
Regulations. CHAPTER IX OFFENCES AND
PENALTIES (1)
The
Court shall, for the purposes of compounding any offence specified under
Section 70, accept a sum of money as specified in the Table below: Offence Money
to be paid for compounding the offence Imprisonment
under sub-section (2) of Section 59 10%
of the estimated cost of the real estate project. Imprisonment
under Section 64 10%
of the estimated cost of the real estate project Imprisonment
under Section 66 10%
of the estimated cost of the plot, apartment or building, as the case may be,
of the real estate project, for which the sale or purchase has been
facilitated Imprisonment
under Section 68 10%
of the estimated cost of the plot, apartment or building, as the case may be (2)
On
payment of the sum of money in accordance with the table above, any person in
custody in connection with that offence shall be set at liberty and no
proceedings shall be instituted or continued against such person in any court. (3)
The
acceptance of the sum of money for compounding an offence in accordance with
the table above, by the Court shall be deemed to amount to an acquittal within
the meaning of Section 300 of the Code of Criminal Procedure, 1973. (Central
Act 2 of 1974) (4)
The
promoter, allottee or real estate agent, as the case may be, shall comply with
the orders of the regulatory authority or the Appellate Tribunal, within the
period specified by the court, which shall not be more than thirty days from
the date of compounding of the offence. (1)
Any
aggrieved person may file a complaint with the Authority for any violation under
the Act or the rules or regulations made thereunder, save as those provided to
be adjudicated by the adjudicating officer, in Form 'M' which shall be
accompanied by a fee of "rupees one Thousand" in the form of a demand
draft drawn on a nationalized bank in favour of Authority or as specified by
the regulations or orders of the Authority from time to time and payable at the
main branch of that bank at the station where the seat of the said Authority is
situated or as specified by the regulations or orders of the authority from
time to time. (2)
The
Authority shall for the purposes of deciding any complaint as specified under
sub-rule (1), follow summary procedure for inquiry in the following manner. (a)
Upon
receipt of the complaint the Authority shall issue a notice along with
particulars of the alleged contravention and the relevant documents to the
respondent; (b)
The
notice shall specify a date and time for further hearing; (c)
On
the date so fixed, the Authority shall explain to the respondent about the
contravention alleged to have been committed in relation to any of the
provisions of the Act or the rules and regulations made thereunder and if the
respondent (i)
Pleads
guilty, the Authority shall record the plea, and pass such orders including
imposition of penalty as it thinks fit in accordance with the provisions of the
Act or the rules or regulations, made thereunder; (ii)
Does
not plead guilty and contests the complaint the Authority shall demand and
explanation from the respondent; (d)
In
case the Authority is satisfied on the basis of the submissions made that the
complaint does not require any further inquiry and it may dismiss the
complaint; (e)
In
case the Authority is satisfied on the basis of the submissions made that the
there is need for further hearing into the complaint it may order production of
documents or other evidence on a date and time fixed by it; (f)
The
Authority shall have the power to carry out an inquiry into the complaint on
the basis of documents and submissions; (g)
The
Authority, if deemed necessary, may require and appoint one or more persons or
one or more officers or employees of the authority to make an enquiry in
relation to the affairs of any promoter or allottee or real estate agent. (h)
On
the date so fixed, the Authority upon consideration of the evidence produced
before it and other records and submissions is satisfied that (i)
The
respondent is in contravention of the provisions of the Act or the rules and
regulations made thereunder it shall pass such orders including imposition of
penalty as it thinks fit in accordance with the provisions of the Act or the
rules and regulations made thereunder; (ii)
The
respondent is not in contravention of the provisions of the Act or the rules or
regulations made thereunder the Authority may, by order in writing, dismiss the
complaint, with reasons to be recorded in writing. (i)
If
any person fails, neglects or refuses to appear, or present himself as required
before the Authority, the Authority shall have the power to proceed with the
inquiry in the absence of such person or persons after recording the reasons
for doing so. (1)
Any
aggrieved person may file a complaint with the adjudicating officer for
compensation under Section 12, 14, 18 and 19 of the Act in Form N which shall
be accompanied by a fee of rupees one thousand in the form of a demand draft
drawn on a nationalized bank in favour of regulatory authority or and payable
at the main branch of that bank at the station where the seat of the said
authority is situated or as per the regulations or orders issued by the
regulatory authority from time to time. (2)
The
adjudicating officer shall for the purposes of adjudging compensation follow
summary procedure for inquiry in the following manner: (a)
Upon
receipt of the complaint the adjudicating officer shall issue a notice along
with particulars of the alleged contravention and the relevant documents to the
promoter; (b)
The
notice shall specify a date and time for further hearing; (c)
On
the date so fixed, the adjudicating officer shall explain to the promoter about
the contravention alleged to have been committed in relation to any of the
provisions of the Act or the rules or regulations made thereunder and if the
promoter: (i)
Pleads
guilty, the adjudicating officer shall record the plea, and award such
compensation as he thinks fit in accordance with the provisions of the Act or
the rules and regulations, made thereunder; (ii)
does
not plead guilty and contests the complaint the adjudicating officer shall
demand and explanation from the promoter; (d)
In
case the adjudicating officer is satisfied on the basis of the submissions made
that the complaint does not require any further inquiry it may dismiss the
complaint; (e)
In
case the adjudicating officer is satisfied on the basis of the submissions made
that the there is need for further hearing into the complaint it may order
production of documents or other evidence on a date and time fixed by him; (f)
The
adjudicating officer shall have the power to carry out an inquiry into the
complaint on the basis of documents and submissions; (g)
On
the date so fixed, the adjudicating officer upon consideration of the evidence
produced before him and other records and submissions is satisfied that the
promoter is (i)
Liable
to pay compensation, the adjudicating officer may, by order in writing, order
payment of such compensation, as deemed fit by the promoter to the complainant;
or (ii)
Not
liable to any compensation, the adjudicating officer may, by order in writing,
dismiss the complaint, with reasons to be recorded in writing. (h)
If
any person fails, neglects or refuses to appear, or present himself as required
before the adjudicating officer, the adjudicating officer shall have the power
to proceed with the inquiry in the absence of such person or persons after
recording the reasons for doing so. CHAPTER X BUDGET AND REPORT (1)
The
Authority shall maintain proper accounts of its funds and other relevant
records. At the end of each financial year, the Authority shall prepare a
budget and an annual statement of accounts. The annual statement of accounts
shall be prepared in Form-"O" (2)
The
Authority shall preserve the accounts and other relevant records prepared under
sub-rule (1) for a minimum period of five years. (3)
The
accounts and other relevant records prepared under sub-rule (1) shall be signed
by the Chairperson, Members, Secretary and the Officer-in-charge of Finance and
Accounts. (1)
The
Authority shall prepare immediately after the end of the calendar year, its
annual report in Form "P" (2)
In
addition to matters specified in Section 78 of the Act the Authority may
include in its Annual Report such other matters as it deems fit. (3)
The
annual report shall, after adoption at a meeting of the Authority and signed by
the Chairperson and Members and authenticated by affixing the common seal of
the authority, with requisite number of copies thereof, be submitted to the
Government within a period of one hundred and eighty days immediately following
the close of the year for which it has been prepared.KERALA REAL ESTATE (REGULATION AND
DEVELOPMENT) RULES, 2018
PREAMBLE