Gujrera Question and Answer 1

Does the definition of ‘promoter’ include public bodies such as Development Authorities and Housing Boards?

The Act covers all bodies (private and public) which develop real estate projects for sale to the general public. Section 2(zk) defines the term ‘promoter’ which includes both private and public real estate promoters. Thus, both Development Authorities and the Housing Boards, when involved in the sale are covered under the Act.

Does the definition of ‘promoter’ include all promoters in case of joint development?

As per the Explanation in section 2(zk) “where the person who constructs or converts a building into apartments or develops a plot for sale and the persons who sell apartments or plots are different persons, both of them shall be deemed to be the promoters and shall be jointly liable as such for the functions and responsibilities specified, under this Act or the rules and regulations made thereunder”.

Does the advertisement include solicitation by email and SMS? Is the issuance of a prospectus considered to be a case of ‘advertisement’?

As per section 2(b), which defines ‘advertisement’ any medium adopted in soliciting for sale would be covered under the said definition, including SMS and emails.

What is the difference between the term ‘completion certificate’ and ‘occupancy certificate’?

Section 2(zf) and section 2(q) respectively, define ‘occupancy certificate’ and ‘completion certificate’. Occupancy certificate relates to the occupation of the apartment/building, which has provisions for civic infrastructures such as water, sanitation and electricity and is habitable.

A completion certificate relates to the completion of the entire project certifying that the project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority.

What is the definition of a ‘garage’ and can it be sold by the promoter independent of an ‘apartment’?

Section 2(y) defines the term ‘garage’, which can be sold to the allottee independent of the ‘apartment’.