Ban on property registration not applicable on third party transactions

The Gurugram administration on Tuesday said that the “ban on registration of sale deeds of all properties of the developer of Chintels Group” has been only imposed on primary sale from the developer to the buyer, but not on third party sales

The Gurugram administration on Tuesday said that the “ban on registration of sale deeds of all properties of the developer of Chintels Group” has been only imposed on primary sale from the developer to the buyer, but not on third party sales.

Gurugram, India - February 18, 2022: Residents of Block-D Tower-4 have their flats vacated for inspection after the district administrator and building management order at Chintels Paradiso Housing Complex in Sector 109, Gurugram, India on Friday, February 18, 2022. Ceilings of a few apartments in Tower D had collapsed on Thursday, February 10 at the Chintel's Paradiso. (Photo by Parveen Kumar/Hindustan Times)

The direction issued on Tuesday said that the ban was imposed on registration of sale deeds of properties following the February 10 incident — when two residents of a housing complex developed by Chintels Paradiso died after multiple ceilings in a building there collapsed; and repeated complaints by property owners.

According to the order issued by district registrar, “In light of the Chintels Paradiso incident, it is hereby directed that you (Chintels Group) should refrain from registering documents related to property of upcoming projects being developed by the developer/owner till further notice. This order only applies on transactions being made between the said developer and first-time buyers, and not on third party transactions.”

Several individual owners who want to buy and sell properties to third parties shall get relief from this clarification, said a DTCP official privy to the matter, requesting anonymity.

The order further said that the revenue department has been asked to ensure that property related transactions between the developers and first-time buyers need to be registered.