In a major relief to private builders of under-construction projects across the state, the housing and urban development department of Punjab has decided to renew their licences, which expired five to six years ago. The licences have been extended till December 31, 2022.
There are 50 private builders in Mohali whose projects are stuck due to expired licences. In the notification issued on Thursday, the department stated that the decision has been taken in view of the slowdown in the real estate sector so as to facilitate completion of projects.
The notification also states that in case the builder has already given post-dated cheques, the licence will be automatically renewed.
As per the Punjab Apartment and Property Regulation Act (PAPRA), 1995, while applying for licence of any project, the builder is given around five years for completion of project. If they fail to deliver within the stipulated time period, the license gets expired, which results in the projects getting stalled.
The decision of renewing the licences was taken to ensure that the allottees of under-construction projects get possession of their properties at the earliest, as the decision mandated that any promoter who would apply for renewal of licence would be required to complete the project and obtain completion certificate from the authority concerned before December 31, 2022.
A senior GMADA official said the decision was taken after representation from various builders for extension of their licences. “Also, the government felt that due to slowdown in the real estate market, the conditions are not favourable for builders. The move will allow promoters to renew their expired licences and handover the possession of properties to allottees after completion of projects,” he said.
{{/usCountry}}A senior GMADA official said the decision was taken after representation from various builders for extension of their licences. “Also, the government felt that due to slowdown in the real estate market, the conditions are not favourable for builders. The move will allow promoters to renew their expired licences and handover the possession of properties to allottees after completion of projects,” he said.
{{/usCountry}}He further said the decision will be especially beneficial for those promoters who had obtained licences before 2014.
Jubilee Real Estate Group, Mohali, director Sanyam Dudeja said it is a positive move as builders will now be able to complete the project and handover the possession to allottees.