Legal Provision for getting Flat instead of paltry refund under Section 8(2) of Haryana Development Regulation of Urban Areas Act 1975

[Vijay Shokeen]

GURGAON: The housing projects of Mayfield Gardens will soon be handed over to the Municipal Corporation of Gurgaon (MCG) for all maintenance work. This is for the first time that the department of Town and Country Planning (DTCP), after taking over a builder's project, is handing over the maintenance work to the city' municipal corporation.

In February the DTCP had taken over all the projects of Mayfield Gardens and has now recommended to the state government that the MCG take over the housing colonies of the project.

Confirming the development, R K Singh, Senior Town Planner (STP), said: "This recommendation is in sync with the overall policy in which the colonies are handed over to the local municipal body in the city. Also, ultimately the work of maintenance in these colonies will be done by the MCG."

The STP also said that the decision regarding handing over the colonies to the MCG was yet to be finalized. "There is no timeline fixed for the complete takeover by the MCG but the process of working in this direction has started," said Singh.

The DTCP took over the colonies following the builder's default on payment related to licence renewal. At present, all the projects, complete and incomplete, are under the administrative control of the DTCP.

Earlier, to sort out the problems of residents the department had formed a committee in which RWA functionaries were made members. The RWA members had demanded the DTCP start doing the maintenance work in the colonies under the project.

But the DTCP was reluctant to take up the responsibility. It is the responsibility of the builders to maintain all roads, open space, public park and public health services for a period of five years from the date of issuance of the completion certificate. After taking over the Mayfield Gardens project, the DTCP is not equipped to handle the massive maintenance work. ,"The DTCP doesn't have the wherewithal to look after the maintenance of colonies, so it has been decided to hand them over to the MCG and the department will look after the progress of the projects that are yet to be completed," said another DTCP official.

The residents have greeted the development but are still anxious about the property registration embargo of the DTCP. "It is no doubt a praiseworthy move by the DTCP but it must do something about the registration of property of house owners who have paid all the money to the builder and are living here," said Sanjay Singh, a resident.

The cancellation of licences of Mayfield Gardens has impacted all ongoing constructions in the colony like Orchid Island Floors, Princeton Floors, symphony Floors, Spring Floors Lotus Floors etc anywhere in Blocks A to N in sectors 47,50,51,52 & 57. The proclamation to that effect has already been made in the colony by the TCP department by placing Public Notice at prominent places in the colony and announcing through the public media. The Public Notice stated that the administration of the colony has been taken over by STP Gurgaon RK Singh for all purposes on behalf of DG TCP. The General Public has been advised through this Notice not to enter into any kind of agreement/transaction with the developers of Mayfield Gardens in respect of new properties and in case of already sold properties, the pending installment payable to licensee companies or their authorised companies shall henceforth be paid to DG TCP. Rule 18(4) of Haryana Development Regulation of Urban Areas Rules 1976 stipulates that on cancellation of licence, no further work shall be undertaken or carried out by colonizers. Further the DG TCP has to issue a Notice to colonizers in Form LC XI as per Rule 19(1) of Rules 1976 that the colonizers are required to furnish within 15 days an audited statement of accounts duly certified and signed by chartered accountant showing the amount actually received from plot/flat buyers and the amount actually spent on development works in the colony. Section 8(2) of Haryana Development Regulation of Urban Areas Act 1975 stipulates that after cancellation of licence, the DG TCP himself shall carry out or cause to be carried out, the development works in the colony and recover such charges required to be incurred on the said development works from the colonizers and the plot/flat holders in the manner prescribed as arrears of land revenue. The provisions of Act/Rules provide that the liability of the colonizers for payment of such charges shall not exceed the amount the colonizers have actually recovered from the plot/flat holders less the amount actually spent on such development works, and that of the plot/flat holders shall not exceed the amount which they would have to pay to the colonizers under the terms of agreement of sale. After the colony has been fully laid out by DGTCP, he shall on behalf of the colonizer transfer the ownership to plot/flat buyers by way of conveyance/sale deed under the Property Transfer Act on receipt of the amount which was due from them. The general public is not aware about the proposed plans of DGTCP for commencement of works in the colony. The uncertainty in the mind of public has developed because the DG TCP have not yet intimated the colonizers and property owners about the modalities/ways for development works proposed to be carried out by him and its estimated cost. The entire issue is being closely monitored. Whosoever wish to seek any clarification may contact me