Real estate: Haryana makes transfer of development licences tougher
The government asked builder who want to transfer his development licence to inform allottees about the proposed change. The decision aims to ensure that the investment of apartment buyers and allottees remain safe.gurgaon Updated: Jan 16, 2017 18:43 IST
The Haryana government has decided that any builder who wants to transfer his development licence in the state will have to inform allottees about the proposed change through advertisement, information on their website and through individual emails.
The move is aimed at preventing the misuse of project licences and to ensure that those who are launching real estate projects deliver these in the long run.
RS Bhath, assistant town planner, Gurgaon, said the decision was taken to ensure that only serious players take change of land use and project licences so that the investment of apartment buyers and allottees remain safe. “This will also ensure that ownership of projects does not change hands frequently as it harms the interests of homebuyers,” Bhath said.
The government also stipulated that a developer will have to ensure that the maximum profit limit per project --15% -- mandated by the town and country planning, which oversees the mandate of the granting licences and real estate projects, is observed if there is a proposal to transfer the licence.
A related directive issued by the town and country planning department said a developer seeking transfer of licence will have to submit a certificate that the 15% profit margin does not exceed the project cost.In case of a profit higher than 15%, the surplus profit along with interest at 12% will be recovered from the developer seeking transfer of licence.
The town and country planning department said builders will have to give time to buyers or allottees to raise objections, if any, to the proposed transfer limited to the scope of their rights in the project at the office of senior town planner within 30 days.
After the expiry of this period, the senior town planner will submit a report with regard to the objections raised by the allottees along with his/her comments. The decision to transfer the licence will be taken after examining and deciding on the objections.
Developers welcomed the government’s decision. They said it will curb the tendency of influential businessmen, and landowners to obtain the licences and later trade the rights. “Licences were obtained and sold to third parties without doing any development work. It had become a business in itself but it had a very harmful impact on the market as a whole. This decision will ensure that serious players remain in the business,” Praveen Jain, president, National Real estate development corporation (Naredco), a developers’ body, said.