CRE Rules 4Chapter II · Real Estate Project

Section 4 · Additional disclosure by promoters of ongoing projects

(1)

Upon the notification for commencement of sub-section (1) of section 3, the promoter of an ongoing project which has not received completion certificate shall, within the time specified in the said sub-section, make an application to the Authority as provided in rule 3.

(2)

The promoter shall in addition to disclosures provided in rule 3 disclose the following information, namely:-

(a)

the original sanctioned plan, layout plan and specifications and the subsequent modifications carried out, if any, including the existing sanctioned plan, layout plan and specifications;

(b)

the total amount of money collected from the allottees and the total amount of money used for development of the project including the total amount of balance money lying with the promoter;

(c)

status of the project (extent of development carried out till date and the extent of development pending) including the original time period disclosed to the allottee for completion of the project at the time of sale including the delay and the time period within which he undertakes to complete the pending project, which shall be commensurate with the the extent of development already completed, and this information shall be certified by an engineer, an architect and a chartered accountant in practice.

(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 plotted development, the promoter shall disclose the area of the plot being sold to the allottees as per the layout plan.

(5)

For projects that are ongoing and have not received completion certificate, on the date of commencement of the Act, the promoter shall, within a period of three months of the application for registration of the project with the Authority, deposit in the separate bank account, seventy per cent. of the amounts already realized from the allottees, which have not been utilized for construction of the project or the land cost for the project as required under sub-clause (D) of clause (l) of sub-section (2) of section 4, which shall be used for the purposes specified therein.

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