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  "title": "Islamabad Real Estate (Regulation and Development) Act, 2020.",
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  "text": "Page 1 of 53 \r\n \r\n \r\nTHE ISLAMABAD REAL ESTATE (REGULATION AND \r\nDEVELOPMENT) ACT, 2021 \r\n \r\n \r\n \r\n \r\nCONTENTS \r\n_______ \r\nSECTIONS: \r\n1. Short title, extent and commencement. \r\n2. Definitions. \r\n3. Prior Registration of real estate project with Real Estate Regulatory Authority. \r\n4. Application for registration of real estate project. \r\n5. Registration of the Developer with the Authority. \r\n6. Extension of registration of the Developer. \r\n7. Revocation of registration of the Developer. \r\n8. Obligation of Aut hority consequent upon lapse of or on revocation of registration of a \r\nDeveloper. \r\n9. Registration of real estate agents. \r\n10. Functions of real estate agents. \r\n11. Functions and duties of developer. \r\n12. Obligation of developer regarding veracity of the advertisement or prospectus. \r\n13. No deposit or advance to be taken by developer without first entering into agreement for \r\nsale. \r\n14. Adherence to sanctioned plans and project specifications by the developer. \r\n15. Obligation of developer in case of transfer of a real estate project to a third party. \r\n16. Obligation of developer regarding insurance of real estate project. \r\n \r\nUpdated till 11.04.2023\r\n \r\nPage 2 of 53 \r\n \r\n17. Transfer of titles. \r\n18. Return of the amount and compensation. \r\n19. Rights and duties of allottees. \r\n20. Establishment and incorporation of Real Estate Regulatory Authority. \r\n21. Composition of the Authority \r\n22. Age limit of the Chairperson and Members of the Authority on appointment and age of \r\nsuperannuation. \r\n23. Terms of office of Chairperson and Members of the Authority. \r\n24. Salary and allowances payable to Chairperson and Members of the Authority \r\n25. Resignation and removal of the Chairperson and Members of Authority. \r\n26. Administrative powers of the Chairperson. \r\n27. Removal of Chairperson and Members from office in certain circumstances. \r\n28. Restriction on Chairperson or Members on employment after cessation of office. \r\n29. Officers and other employees of Authority. \r\n30. Meetings of Authority. \r\n31. Vacancies etc. not to invalidate proceeding of Authority. \r\n32. Filing of complaints with the Authority. \r\n33. Functions of Authority for Promotion of real estate sector. \r\n34. Advocacy and awareness measures. \r\n35. Functions of Authority. \r\n36. Power of Authority to delegate any of its functions to another Authority or Department. \r\n37. Powers of Authority to call for information and conduct inquiry and make assessments. \r\n38. Powers of Authority. \r\n39. Powers to issue interim orders. \r\n40. Powers of Authority to issue directions. \r\n41. Orders of recovery of interest or penalty or compensation and enforcement of Order etc. \r\n42. Rectification and review of orders. \r\n43. Punishment for non-registration by a Developer. \r\n44. Penalty for providing false information. \r\n45. Punishment for non-registration by a Real Estate Agent. \r\n46. Penalty for failure to comply with orders of Authority by Developer. \r\n \r\nPage 3 of 53 \r\n \r\n47. Penalty for failure to comply with orders of Authority by allottee. \r\n48. Penalties of violation of provisions of this Act by a Developer  or any Office Bearers of \r\nany other Authority or Department or Company or Developer, etc. by Developers and \r\nCompanies. \r\n49. Compounding of Offences. \r\n50. stablishment of the Real Estate Appellate Tribunal. \r\n51. Composition of Appellate Tribunal.  \r\n52. Appointment and Qualification of Chairperson and Members of Appellate Tribunal. \r\n53. Term of Office of Chairperson and Members. \r\n54. Salary and allowances payable to Chairperson and Members of the Appellate Tribunal. \r\n55. Resignation and Removal of Chairperson and Members of the Appellate Tribunal. \r\n56. Filling of vacancies.  \r\n57. Removal of Chairperson and Members from office in certain circumstances. \r\n58. Restriction on Chairperson or Members of the Appellate Tribunal on employment. \r\n59. Transfer of Appeals.  \r\n60. Application for settlement of disputes and appeals to appellate Tribunal. \r\n61. Appraisal and Inquiry Officer of the Appellate Tribunal or the Authority. \r\n62. Factors to be taken into account by inquiry officer. \r\n63. Officers and other employees of Appellate Tribunal. \r\n64. Powers of Tribunal. \r\n65. Administrative Powers of the Chairman of Appellate Tribunal. \r\n66. Vacancies etc. not to invalidate proceeding of Appellate Tribunal. \r\n67. Right to legal representation. \r\n68. Orders passed by the Appellate Tribunal to be executable as a decree.  \r\n69. Penalty for failure to comply with orders of Appellate Tribunal by Developer. \r\n70. Penalty for failure to comply with orders of Appellate Tribunal by Real Estate Agent. \r\n71. Penalty for failure to comply with orders of Appellate Tribunal by Real Estate Agent. \r\n72. Penalty for failure to comply with orders of Appellate Tribunal by allottee. \r\n73. Appeal to High Court. \r\n74. Grants and Loans by Federal Government. \r\n75. Constitution of Fund. \r\n \r\nPage 4 of 53 \r\n \r\n76. Crediting sums realized by way of penalties to the Fund. \r\n77. Budget, accounts and audit. \r\n78. Annual report. \r\n79. Bar of jurisdiction. \r\n80. Delegation. \r\n81. Power to supersede Authority. \r\n82. Power to issue Directions to Authority and obtain reports and returns. \r\n83. Powers to make rules. \r\n84. Powers to make regulations of the authority. \r\n85. Members etc. to be public servants. \r\n86. Act to have overriding effect. \r\n87. Protection of actions taken in good faith. \r\n88. Power to remove difficulties. \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\nPage 5 of 53 \r\n \r\nTHE ISLAMABAD REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2021 \r\n \r\n[6th February, 2021] \r\nAct \r\nto establish the Real Estate Regulatory Authority for regulation and promotion of the real estate \r\nsector and for matters connected therewith \r\n \r\nWHEREAS it is expedient to establish the Real Estate Regulatory Authority for regulation \r\nand promotion of the real estate sector and to protect the interest of buyers in the real estate sector \r\nby ensuring that the sale and purchase of plot, apartment or building, as the case may be, or sale \r\nof real estate project, to the buyer by a developer or owner holding title by himself or through a \r\ncompany or an agent is by an efficient and transparent manner and to regulate mega projects in \r\nthe real estate sector by any developer and provide a mechanism for speedy dispute redressed by \r\nestablishing an Appellate Tribunal to hear appeals from the decisions, directions or orders of the \r\nReal Estate Regulatory Authority and the recommendations of the inquiry officer and for matters \r\nconnected therewith or incidental thereto follows:— \r\n \r\nCHAPTER I \r\n \r\nPRELIMINARY \r\n \r\n1. Short title, extent and commencement.—(1) This Act may be called the \r\nIslamabad Real Estate (Regulation and Development) Act, 2020. \r\n \r\n(2) It extends to the Islamabad Capital Territory. \r\n \r\n(3) It shall come into force at once. \r\n \r\n2. Definitions.—(1) In this Act, unless the context otherwise requires,— \r\n \r\n(a) “Authority” means the Islamabad Real Estate Regulatory Authority established \r\nunder this Act; \r\n \r\n(b) “Appraisal or inquiry officer” means the inquiry officer appointed  by the \r\nAuthority or the Appellate Tribunal under this Act; \r\n \r\n(c) “Advertisement” means any document by the developer or his authorized agent \r\ndescribed or issued as advertisement through any  medium and includes any \r\nnotice, circular or other documents or publicity in any form, informing persons \r\nabout a real estate property or real estate project, or offering for sale of a plot, \r\nbuilding or apartment or inviting persons to purchase in any manner such  plot, \r\nbuilding or apartment or to make advances or deposits for such purposes; \r\n \r\n(d) “allottee” in relation to a real estate project or a real estate holding ,  means the \r\nperson to whom a plot, apartment or building, as the case may be, has been sold \r\n \r\nPage 6 of 53 \r\n \r\n(whether as freehold or leasehold which is not less than thirty three years) by \r\nway of a sale, transfer or otherwise or transferred by the developer having sale \r\nof real estate rights given to him by the owner of the real estate, and includes \r\nthe person who subsequently acquires the said allotment but does not \r\ninclude a person to whom such plot, apartment or building, as the case may be, \r\nis given on rent; \r\n \r\n(e) “Agreement for sale” means an agreement entered into between the  developer \r\nand the allottee to sell and to purchase the property respectively; \r\n \r\n(f) “apartment” whether called block, chamber, dwelling unit, flat, office, \r\nshowroom, shop, godown, premises, suit, tenement, unit or by any other name, \r\nmeans a separate and self-contained part of any immovable property, including \r\none or more rooms or enclosed spaces, located on one or more floors or any part \r\nthereof, in a building or on a plot of land, used or intended to be used for any  \r\nresidential or commercial use such as residence, office, shop, showroom or \r\ngodown or for carrying on any business, occupation, profession or trade, or for \r\nany other type of use ancillary to the purpose specified; \r\n \r\n(g) “Appellate Tribunal” means the Real Estate Appellate Tribunal established \r\nunder this Act; \r\n \r\n(h) “Government” means the Federal Government; \r\n \r\n(i) “architect” means a person registered as an architect under the provisions of the \r\nPakistan Council of Architects and Town planners Act, 1983 (Ordinance No. IX \r\nof 1983); \r\n \r\n(j) “building” includes any structure or erection or part of a structure or erection \r\nwhich is intended to be used for residential, commercial  or for the purpose of \r\nany business, occupation, profession or trade, or for any other related purposes; \r\n \r\n(k) “carpet area” means the net usable floor area of an apartment, excluding the area \r\ncovered by the external walls, areas under services shafts, exclusive balcony or \r\nverandah area and exclusive open terrace area, but includes the area covered by \r\nthe internal partition walls of the apartment. \r\n \r\nExplanation.—For the purpose of this clause, the expression “exclusive balcony \r\nor verandah area” means the area of the balcony  or verandah, as the case may \r\nbe, which is appurtenant to the net usable floor area of an apartment, meant for \r\nthe exclusive use of the  allottee; and “exclusive open terrace area” means the \r\narea of open  terrace which is appurtenant to the net usable floor area of an \r\napartment, meant for the exclusive use of the allottee. \r\n(l) “Chairperson” means the Chairperson of the Real Estate Regulatory  Authority \r\n \r\nPage 7 of 53 \r\n \r\nappointed under this Act; \r\n \r\n(m) “commencement certificate” means the commencement certificate  or the \r\nbuilding permit or the construction permit, by whatever name  called issued by \r\nthe an authority empowered by law or the owner if so permitted by law to allow \r\nor permit the developer to begin development works on an immovable property, \r\nas per the sanctioned plan approved and issued an authority empowered by law; \r\n \r\n(n) “common areas” mean— \r\n \r\n(i) the entire land for the real estate project even when the project is developed \r\nin phases and registration under this Act is sought for only a phase out of \r\nthe entire land; \r\n \r\n(ii) the cases, lifts, fire escapes, and common entrances and exits of buildings; \r\n \r\n(iii) the common basements, terraces, parks, play areas; open parking areas and \r\ncommon storage spaces; \r\n \r\n(iv) the premises for the lodging of persons employed for the management of \r\nthe property including accommodation for watch and ward staffs or for the \r\nlodging and offices of community service personnel; \r\n \r\n(v) Installations of central services such as electricity, gas, water  and \r\nsanitation, air-conditioning, system for water conservation  and renewable \r\nenergy and incinerating; \r\n \r\n(vi) the water tanks, sumps, motors, fans, compressors, ducts and all apparatus \r\nconnected with installations for common use; \r\n \r\n(vii) all community and commercial facilities as provided in the real estate \r\nproject; and \r\n \r\n(viii) all other portion of the project necessary or convenient for its \r\nmaintenance, safety, etc., and in common use; \r\n \r\n(o) “company” means a company incorporated and registered under the Companies \r\nAct, 2017 (XIX of 2017) to develop and construct real estate projects; \r\n(p) “corporation” means a corporation established by or under any Federal Act; \r\n \r\n(q) “development authority” means any public authority established by  the \r\nGovernment in this behalf under any law for the time being in force; \r\n \r\n(r) “completion certificate” means the completion certificate, or such  other \r\ncertificate, by whatever name called, issued by the an authority empowered by \r\n \r\nPage 8 of 53 \r\n \r\nlaw certifying that the real estate project  has been developed according to the \r\nsanctioned plan, layout plan and specifications, as approved by the an authority \r\nempowered by law under the local laws; \r\n \r\n(s) “day” means the working day, in the Federal territory, notified by  the Federal \r\nGovernment from time to time; \r\n \r\n(t) “Land owner” means any local authority or the Capital Development Authority \r\ncreated or established under any law for the  time being in force by the Federal \r\nGovernment holding a land lawfully which can be sold to the public or a lawful \r\nowner of the land having authority over land under its jurisdiction to sell it, and \r\nhas powers to give permission for development of such immovable property to \r\na developer; \r\n \r\n(u) “development” with its grammatical variations and cognate expressions, means \r\ncarrying out  the development of immovable property, engineering or other \r\noperations in, on, over or under the  land or the making of any material change \r\nin any immovable property or land and includes re-development; \r\n \r\n(v) “development works” means the external development works and  internal \r\ndevelopment works on immovable property; \r\n \r\n(w) “engineer” means a person who is registered as an engineer with the Pakistan \r\nEngineering Council; \r\n \r\n(x) “estimated cost of real estate project” means the total cost involved  in \r\ndeveloping the real estate project and includes the land cost, taxes, development \r\nand other charges; \r\n \r\n(y) “external development works” includes roads and road systems landscaping, \r\nwater supply, sewerage and drainage systems, electricity supply transformer, \r\nsub-station, solid waste management and disposal or any other work which may \r\nhave to be executed in \r\nthe periphery of, or outside, a project for its benefit, as may be provided under \r\nthe local laws; \r\n \r\n(z) “family” includes husband, wife, minor son and unmarried daughter, father or \r\nmother wholly dependent on a person; \r\n \r\n(za) “garage” means a place within a project having a roof and walls on  three sides \r\nfor parking any vehicle, but does not include an unenclosed or uncovered \r\nparking space such as open parking areas; \r\n \r\n(zb) “immovable property” includes land, buildings, rights of ways, lights or any \r\nother benefit arising out of land and things attached to the earth or permanently \r\n \r\nPage 9 of 53 \r\n \r\nfastened to anything which is attached to  the earth, but not  standing timber, \r\nstanding crops or grass; \r\n \r\n(zc) “interest” means the rates of interest payable by the developer or the allottee, \r\nas the case may be. \r\n \r\nExplanation.—For the purpose of this clause,— \r\n \r\n(i) the rate of interest chargeable from the allottee by the developer, in case of \r\ndefault in the payment scheme agreed upon in the agreement, shall be equal \r\nto the rate of interest which the developer shall be liable to pay the allottee, \r\nin case of default; and \r\n \r\n(ii) the interest payable by the developer to the allottee shall be  from the date \r\nthe developer did not deliver the possession of  the premises/ real estate \r\nproject as per the agreement between  the Seller developer and buyer \r\nallottee. \r\n \r\n(zd) “internal development works” in relation to a real estate project  means roads, \r\nfootpaths, water supply, sewers, drains, parks, tree  planting, street lighting, \r\nprovision for community buildings and for  treatment and disposal of sewage \r\nand silage water, solid waste management and disposal, water conservation, \r\nenergy management,  fire protection and fire safety requirements, social  \r\ninfrastructure such as educational, health and other public amenities or any other \r\nwork in a project for its benefit, as per sanctioned plans; \r\n \r\n(ze)  “local authority” means the Municipal Corporation or Municipality  or Capital \r\nDevelopment Authority or Panchayats or any other Local  Body constituted \r\nunder any law for the time being in force for  providing municipal services or \r\nbasic services, as the case may be, in respect of areas under its jurisdiction; \r\n(zf) “Member” means the member of the Real Estate Regulatory Authority \r\nappointed under this Act; \r\n(zg) “Ministry” means the Ministry of Interior, Government of Pakistan;  (zh) \r\n“notification” means a notification published  in the Official Gazette  and the \r\nexpression “notify” shall be construed accordingly; \r\n \r\n(zi)  “occupancy certificate” means the occupancy certificate, or such  other \r\ncertificate by whatever name called, issued by the an authority empowered by \r\nlaw permitting occupation of any building  constructed reasonably within the \r\napproved plan or layout as provided under local laws, which has the civic \r\ninfrastructure such as water, sanitation and electricity available; \r\n \r\n(zj) “person” includes,— \r\n \r\n(i) an individual; \r\n \r\nPage 10 of 53 \r\n \r\n \r\n(ii) an undivided family; \r\n \r\n(iii) a company; \r\n \r\n(iv) a firm under the Pakistani Partnership Act, 1932 (IX of 1932)  or the \r\nCompanies Act, 2017 (XIX of 2017) as the case may be; \r\n \r\n(v) an authority established and empowered by law; \r\n \r\n(vi) an association of persons or a body of individuals whether  \r\nincorporated or not; \r\n \r\n(vii) a co -operative society registered under any law relating to co - \r\noperative societies; and \r\n \r\n(viii) any such other entity as the Federal Government may, by \r\nnotification, specify in this behalf; \r\n \r\n(zk) “planning area” means a planning area or a development area or a local planning \r\narea or a regional development plan area, by whatever name called, or any other \r\narea specified as such by the Federal Government or any authority having such \r\npower under the  law and includes any area designated by the Federal \r\nGovernment or  any authority or an owner to be a planning area for future \r\nplanned development, under the law relating to Town and Country Planning for \r\nthe time being in force and as revised from time to time; \r\n \r\n(zl) “prescribed” means prescribed by the Rules made under this Act; (zm) “project” \r\nmeans the real estate project as defined under this Act;  (zn) “developer” \r\nmeans,— \r\n(i) a person who constructs or causes to be constructed an independent \r\nbuilding or a building consisting of apartments, or converts an \r\nexisting building or a part thereof into apartments, for the purpose of \r\nselling all or some of the apartments to  other persons himself or \r\nthrough his legally nominated and declared assignees; or \r\n \r\n(ii) a person who develops a land given to him by an land owner  for \r\nconversion of the land into a real estate project, whether or  not such \r\nperson also constructs structures on any of the plots,  for the purpose \r\nof selling to other persons all or some of the  plots in the said project; \r\nor \r\n \r\n(iii) any development authority or any other public body in respect  of \r\nallottees of— \r\n \r\nPage 11 of 53 \r\n \r\n \r\n(a) buildings or apartments, as the case may be, constructed by such \r\nauthority or body on lands owned by them or  placed at their \r\ndisposal by the Government for allotment or for selling out; or \r\n \r\n(b) plots owned by such authority or body or placed at their disposal \r\nby the Government for the purpose of selling all  or some of the \r\napartments or plots for allotment or for selling out; or \r\n \r\n(iv) a co-operative housing finance society and a primary co- operative \r\nhousing society which holds a land lawfully and constructs apartments \r\nor buildings for its Members or in respect of the allottees  of such \r\napartments or buildings owned by it; or \r\n \r\n(v) any other person who acts himself as a builder, coloniser, contractor, \r\ndeveloper, estate developer or by any other  name or claims to be \r\nacting as the holder of a power of attorney from the owner of the \r\nland on which the building or apartment  is constructed or plot is  \r\ndeveloped for sale; or \r\n \r\n(vi) such other person who constructs any building or apartment for \r\nsale to the general public. \r\n \r\nExplanation.—For the purposes of this clause, where the person who constructs or \r\nconverts a building into apartments or develops a plot for sale and the persons who sells apartments \r\nor plots are different persons, both of them shall be deemed to be the developers and shall be jointly \r\nliable as such  for the functions and responsibili ties specified, under this Act  or the Rules and  \r\nregulations made thereunder. \r\n \r\n(zo) “prospectus” means any document described or issued as a prospectus or any \r\nnotice, circular, or other document offering for sale or any real estate project or \r\ninviting any person to make advances or deposits for such purposes; \r\n \r\n(zp) “real estate agent” means any person, who negotiates or acts on  behalf of one \r\nperson in a transaction of transfer of his plot, apartment or building, as the case \r\nmay be, in a real estate project, by way of sale, with another person or transfer \r\nof plot, apartment or  building, as the case may be, of any other person to him \r\nand receives remuneration or fees or any other charges for his services  whether \r\nas commission or otherwise and includes a person who introduces, through any \r\nmedium, prospective buyers and sellers to each other for negotiation for sale or \r\npurchase of plot, apartment or  building, as the case may be, and includes \r\nproperty dealers, brokers, middlemen by whatever name called; \r\n \r\n(zq)    “real estate project” means the development of a plot into a building or a \r\nbuilding consisting of apartments, or converting an  existing building or a part \r\n \r\nPage 12 of 53 \r\n \r\nthereof into apartments, or the development of land into plots for residential \r\nhouses and commercial plots for commercial use or apartments in an apartment \r\nbuilding or in a portion of a building , as the case may be, for the  purpose of \r\nselling all or some of the said apartments or plots or  building, as the case may \r\nbe, and includes the common areas, the  development works, all improvements \r\nand structures thereon, and  all easement, rights and appurtenances belonging \r\nthereto; \r\n \r\n(zr)    “regulations” means the regulations made by the Authority under this Act; \r\n(zs)     “rule” means the rules made under this Act; and \r\n \r\n(zt) “sanctioned plan” means the site plan, building plan, service plan, parking and \r\ncirculation plan, landscape plan, layout plan, zoning  plan and such other plan \r\nand includes structural designs, if applicable, permissions such as environment \r\npermission and such other permissions, which are approved by the an authority \r\nempowered by law prior to start of a real estate project shall continue at the \r\npleasure of the Authority under this Act. \r\n \r\n(2) The words and expressions used herein but not defined in this Act and defined in any \r\nlaw for the time being in force or in the municipal laws or such other relevant laws of the \r\nFederal Government shall have the same meanings respectively assigned to them in those laws. \r\n           ______________ \r\n \r\nCHAPTER II \r\n \r\nREGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL \r\nESTATE AGENTS \r\n \r\n3. Prior Registration of real estate project with Real Estate Regulatory \r\nAuthority.—(1) No developer shall advertise, market, book, sell or  offer for sale, or invite \r\npersons to purchase in any manner any plot, apartment or building, as the case may be, in any real \r\nestate project or part of it, in any planning area, without registering the real estate project with the \r\nReal Estate Regulatory Authority established under this Act: \r\n \r\nProvided that projects that are ongoing on the date of commencement of  this Act and for \r\nwhich the completion certificate has not been issued, the developer shall make an application with \r\nthe documents required to the Authority  for registration of the said project within a period of \r\nthree months from the date of commencement of this Act: \r\n \r\nProvided further that if the Authority thinks necessary, in the interest of  allottees, for \r\nprojects which are developed beyond the planning area but carry a  permission of the local \r\nauthority, it may, by order, direct the developer of such  project to register with the Authority so \r\nthat the provisions of this Act or the rules  and regulations made thereunder become applicable to \r\nsuch projects. \r\n \r\n \r\nPage 13 of 53 \r\n \r\n(2) Notwithstanding anything contained in sub-section (1), no registration of the real \r\nestate project shall be required with the Authority where  the developer has received completion \r\ncertificate for a real estate project prior to commencement of this Act. \r\n4. Application for re gistration of real estate project. —(1) Every  developer shall \r\nmake an application to the Authority for registration of the real  estate project in such form, \r\nmanner, within such time and accompanied by such  fee as may be specified by the regulations \r\nmade by the Authority. \r\n \r\n(2) The developer shall enclose the following documents along with the application \r\nreferred to in sub-section (1), namely:— \r\n \r\n(a) Undisputed ownership documents of the land on which the real estate project is \r\nbeing built and sold; \r\n \r\n(b) if the developer is other than the owner of the land, then a legal  authorization \r\nfor the developer to carry out the real estate project  clearly specifying whether \r\nhe will be developing commercial plots  or buildings or residential plots or \r\nbuildings or apartments and the proposal as to how he will sell these properties \r\nafter development along with a time frame; \r\n \r\n(c) a brief details of his enterprise including its name, registered address, type of \r\nenterprise proprietorship, societies, partnership, companies, an authority \r\nempowered in accordance with the Capital  Development Authority law and \r\nregulations and the particulars of  registration, and the names and photographs \r\nof the developer; \r\n \r\n(d) a brief detail of the projects launched by him, in the past five years,  whether \r\nalready completed or being developed, as the case may be, including the current \r\nstatus of the said projects, any delay in its completion, details of cases pending, \r\ndetails of type of land and payments pending; \r\n \r\n(e) an authenticated copy of the approvals and commencement certificate from the \r\nan authority empowered by law obtained in accordance with the laws as may be \r\napplicable for the real estate project mentioned in the application, and where the \r\nproject is proposed to be developed in phases, an authenticate d copy of the  \r\napprovals and commencement certificate from the an authority empowered in \r\naccordance with the Capital Development Authority  law and regulations for \r\neach of such phases; \r\n \r\n(f) the sanctioned plan, layout plan and specifications of the proposed  project or \r\nthe phase thereof, and the whole project as sanctioned by  the an authority  \r\nempowered by law ; \r\n \r\n(g) the plan of development works to be executed in the proposed project and \r\nthe proposed facilities to be provided thereof including firefighting facilities, \r\n \r\nPage 14 of 53 \r\n \r\ndrinking water facilities, emergency evacuation services, use of  renewable \r\nenergy; \r\n \r\n(h) the location details of the project, with clear demarcation of land  dedicated for \r\nthe project along with its boundaries including the latitude and longitude of the \r\nend points of the project; \r\n \r\n(i) proforma of the allotment letter, agreement for sale, and the conveyance deed \r\nproposed to be signed with the allottees; \r\n \r\n(j) the number, type and the carpet area of apartments for sale in the  project along \r\nwith the area of the exclusive balcony or verandah areas and the exclusive open \r\nterrace areas apartment with the apartment the number and areas of garage for \r\nsale in the project, if any; \r\n \r\n(k) the names and addresses of his real estate agents or his advertisers  and \r\npromoters, if any, for the proposed project; \r\n \r\n(l) the names and addresses of the contractors, architect, structural engineer, if any \r\nand other persons concerned with the development of the proposed project; \r\n \r\n(m) a declaration, supported by an affidavit and documents, which shal l be signed \r\nby the developer or any person authorized by the developer, stating:— \r\n \r\n(i) that he has a legal title to the land on which the development is proposed \r\nalong with legally valid documents with authentication of such title, if \r\nsuch land is owned by another person; \r\n \r\n(ii) that the land is free from all encumbrances, or as the case may  be details \r\nof the encumbrances on such land including any  rights, title, interest or \r\nname of any party in or over such land along with details; \r\n \r\n(iii) the time period within which he undertakes to complete the  project or \r\nphase thereof, as the case may be; \r\n \r\n(iv) that seventy per cent of the amounts realized for the real estate  project \r\nfrom the allottees from time to time and this shall be  deposited in a \r\nseparate account to be maintained in a scheduled bank to cover the cost \r\nof construction and the land cost and shall be used only for that purpose: \r\nProvided that the developer shall withdraw the amounts from the separate account, to cover \r\nthe cost of the project, in proportion to the percentage of completion of the project: \r\n \r\nProvided further that the amounts from the separate account  shall be withdrawn by the \r\ndeveloper after it is certified by an engineer, an architect and a chartered accountant in practice that \r\nthe withdrawal is in proportion to the percentage of completion of the project: \r\n \r\nPage 15 of 53 \r\n \r\n \r\nProvided also that the developer shall get his accounts audited within six months after the \r\nend of every financial year by a chartered accountant in practice, and shall produce a statement of \r\naccounts duly certified and signed by such chartered accountant and it shall be verified during the \r\naudit that the amounts collected for a  particular project have been utilized for the project and the \r\nwithdrawal has been in compliance with the proportion to the percentage of completion of the \r\nproject. \r\n \r\n(v) that he shall take all the pending approvals on time, from the  authorities \r\nconcerned; and \r\n \r\n(vi) that he has furnished such other documents as may be prescribed by the \r\nrules or regulations made under this Act; and \r\n \r\n(n) such other information and documents as may be required by the Authority from \r\ntime to time. \r\n \r\n(3) The Authority shall operationalize a web based online system for  submitting \r\napplications for registration of projects within a period of one year  from the date of the First \r\nmeeting of the Authority, however hardcopy applications can also be submitted to the Authority. \r\n \r\n5. Registration of the Developer with the Authority.—(1) On receipt of the \r\napplication from the developer for grant of registration to it, the  Authority shall, within a period \r\nof thirty days,— \r\n \r\n(a) grant registration subject to the provisions of this Act and the rules  and \r\nregulations made thereunder, and provide a registration number, including a \r\nLogin Id and password to the applicant for  accessing the website of the \r\nAuthority and with directions to the developer to create his web page and to fill \r\ntherein the details of the  proposed project and prominently mention the \r\nregistration number issued by the Authority in all its correspondence and \r\nadvertisements; or \r\n \r\n(b) reject the application for reasons to be recorded in writing, if such  application \r\ndoes not conform to the provisions of this Act or the  rules or regulations made \r\nthereunder: \r\n \r\nProvided that no application shall be rejected unless the applicant has been given an \r\nopportunity of being heard in the matter. \r\n \r\n(2) If the Authority fails to grant the registration or reject the application, as the case \r\nmay be, as provided under sub -section (1), the project  shall be deemed to have been registered, \r\nand the Authority shall within a period of seven days of the expiry of the said period of thirty days \r\nspecified under sub- section (1), provide a registration number and a Login Id and password to \r\nthe developer for accessing the website of the Authority and to create  his web page  and to fill \r\n \r\nPage 16 of 53 \r\n \r\ntherein the details of the proposed project. If the Authority wishes not to grant registration to the \r\ndeveloper it can do so but only after a reasonable opportunity of hearing. \r\n \r\n(3) The registration granted under this section shall be valid for a period as requested by \r\nthe developer in his application for completion of the project or phase thereof, as the case may be. \r\n \r\n6. Extension of registration of the Developer.—The registration granted under \r\nsection 5 may be  extended by the Authority on an application made by the developer due to \r\nforce majeure, in such form and on payment of such fee as may be specified by regulations made \r\nby the Authority: \r\n \r\nProvided that the Authority may in reasonable circumstances, without default on the part \r\nof the developer, based on the facts of each case, and for reasons to be recorded in writing, extend \r\nthe registration granted to a project for  such time as it considers necessary, which shall, in \r\naggregate, not exceed a period of one year: \r\n \r\nProvided further that no application for extension of registration shall be  rejected unless \r\nthe applicant has been given an opportunity of being heard in the matter. \r\n \r\nExplanation.—For the purpose of this section, the expression “force majeure” shall mean \r\na case of war, flood, drought, fire, cyclone, earthquake or  any other calamity caused by nature \r\naffecting the regular development of the real estate project. \r\n7. Revocation of registration of the Developer. —(1) The Authority may, on receipt \r\nof a complaint or suo motu in this behalf or on the recommendation of the an authority empowered \r\nby law , revoke the registration granted under section 5, after being satisfied that— \r\n \r\n(a) the developer makes default in doing anything required by or under this Act or \r\nthe rules or the regulations made thereunder; \r\n \r\n(b) the developer violates any of the terms or conditions of the approval given \r\nby the an authority empowered by law; and \r\n \r\n(c) the developer is involved in any kind of unfair practice or irregularities. \r\n \r\nExplanation.—For the purposes of this clause, the term “unfair  practice \r\nmeans” a practice which, for the purpose of promoting the sale or development \r\nof any real estate project adopts any unfair  method or unfair or deceptive \r\npractice including any of the following practices, namely:— \r\n \r\n(A) the practice of making any statement, whether in writing or by  visible \r\nrepresentation which,— \r\n \r\n(i) falsely represents that the services are of a particular standard or \r\ngrade; \r\n \r\n \r\nPage 17 of 53 \r\n \r\n(ii) represents that the developer has approval or affiliation which such \r\ndeveloper does not have; and \r\n \r\n(iii) makes a false or misleading representation concerning the \r\nservices; and \r\n \r\n(B) the developer permits the publication of any advertisement or  prospectus \r\nwhether in any newspaper or otherwise of services that are not intended to \r\nbe offered; \r\n \r\n(d) the developer indulges in any fraudulent practices. \r\n \r\n(2) The registration granted to the developer under section 5 shall not be revoked unless \r\nthe Authority has given to the developer not less than thirty  days notice, in writing, stating the \r\ngrounds on which it is proposed to revoke the registration, and has considered any cause shown \r\nby the developer within the period of that notice against the proposed revocation. \r\n(3) The Authority may, instead of revoking the registration under sub-section (1), permit \r\nit to remain in force subject to such further terms and  conditions as it thinks fit to impose in the \r\ninterest of the allottees, and any such terms and conditions so imposed shall be binding upon the \r\ndeveloper. \r\n \r\n(4) The Authority, upon the revocation of the registration,— \r\n \r\n(a) shall debar the developer from accessing its website in relation to  that project \r\nand specify his name in the list of defaulters and display  his photograph on its \r\nwebsite and also inform the public about such revocation or registration; \r\n \r\n(b) shall facilitate the remaining development works to be carried out in \r\naccordance with the approved proposal; \r\n \r\n(c) shall direct all the banks holding the project bank account of the  Developer, to \r\nimmediately freeze the account, and thereafter provide an opportunity of \r\nhearing withi n seven working days and  take such further necessary actions, \r\nincluding consequent de- freezing of the said account, towards facilitating the \r\nremaining development works; and \r\n \r\n(d) may, to protect the interest  of allottees or in the  public interest, issue such \r\ndirections as it may deem necessary. \r\n \r\n8. Obligation of Authority consequent upon lapse of or on revocation of \r\nregistration of a Developer.—Upon lapse of the registration or on revocation of the registration \r\nunder this Act, the Authority, may consult the Federal Government to take such action as it may \r\ndeem fit including the carrying  out of the remaining development works by an authority \r\nempowered by law or by the association of allottees or in any other manner, as may be determined \r\nby the Authority: \r\n \r\nPage 18 of 53 \r\n \r\n \r\nProvided that no direction, decision or order of the Authority under this section shall take \r\neffect until the expiry of the period of appeal provided under the provisions of this Act: \r\n \r\nProvided further that in case of revocation of registration of a projec t under this Act, the \r\nassociation of allottees shall have the first right of refusal for  carrying out of the remaining \r\ndevelopment works. \r\n \r\n9. Registration of real estate agents.—(1) No real estate agent shall facilitate the sale \r\nor purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, \r\napartment or building, as the case may be, in a real estate project or part of it, being the part of the \r\nreal estate project registered under section 3, being sold by the developer in any planning area, \r\nwithout obtaining registration under this section. \r\n \r\n(2) Every real estate agent shall make an application to the prescribed  Authority for \r\nregistration in such form, manner, within such time and accompanied by such fee and documents \r\nas may be prescribed by the Islamabad Real Estate Agents and Motor Vehicle Ordinance, 1984. \r\n \r\n(3) The Authority shall, within such period, in such manner and upon satisfying itself of \r\nthe fulfillment of such conditions, as may be prescribed— \r\n \r\n(a) grant a single general registration to the real estate agent for two  years which \r\ncan be renewed after every two years; Or \r\n \r\n(b) grant a single registration to the real estate agent for a particular project; or \r\n \r\n(c) reject the application for reasons to be recorded in writing, if such  application \r\ndoes not conform to the provisions of the Act or the  rules or regulations made \r\nthereunder: \r\n \r\nProvided that no application shall be rejected unless the applicant has been \r\ngiven an opportunity of being heard in the matter. \r\n \r\n(4) Whereon the completion of the period specified under sub-section (3), if the applicant \r\ndoes not receive any communication about the deficiencies in his application or the rejection of \r\nhis application, he shall be deemed to have been registered. \r\n \r\n(5) Every real estate agent who is registered as per the provisions of this Act or the rules \r\nand regulations made thereunder, shall be granted a registration number by the Authority, which \r\nshall be quoted by the real estate agent in every sale facilitated by him under this Act. \r\n \r\n(6) Every registration shall be valid for such period as may be prescribed, and shall be \r\nrenewable for a period in such manner and on payment of such fee as may be prescribed. \r\n \r\n(7) Where any real estate agent who has been granted registration under this Act commits \r\n \r\nPage 19 of 53 \r\n \r\nbreach of any of the conditions thereof or any other terms and conditions specified under this Act \r\nor any rules or regulations made thereunder, or if there is any complaint against a real estate agent \r\nor where the Authority is satisfied that such registration has been secured by the real estate agent \r\nthrough misrepresentation or fraud, the Authority may, without prejudice to \r\nany other provisions under this Act, revoke the registration or suspend the same for such period \r\nas it thinks fit: \r\n \r\nProvided that no such revocation or suspension shall be made by the Authority unless an \r\nopportunity of being heard has been given to the real estate agent. \r\n \r\n10. Functions of real estate agents.—Every real estate agent registered under section \r\n9 shall— \r\n \r\n(a) not facilitate the sale or purchase of any plot, apartment or building, as the case may \r\nbe, in a real estate project or part of  it, being sold by the developer in any planning \r\narea, which is not registered with the Authority; \r\n \r\n(b) maintain and preserve such books of account, records and documents as may  be \r\nprescribed; \r\n \r\n(c) not involve himself in any unfair trade practices, namely:— \r\n \r\n(i) the practice of making any statement, whether orally or in writing or by visible \r\nrepresentation which— \r\n \r\n(A) falsely represents that the services are of a particular standard or \r\ngrade; \r\n \r\n(B) represents any approval or affiliation which the agent or the developer \r\ndoes not have; and \r\n \r\n(C) makes a false or misleading representation concerning the services; \r\n \r\n(ii) permitting the publication of any advertisement whether in any newspaper or \r\notherwise of services that are not intended to be offered. \r\n \r\n(d) facilitate the  possession of all the information and  documents, as the allottee, is \r\nentitled to, at the time of booking of any plot, apartment or building, as the case may \r\nbe; and \r\n \r\n(e) discharge such other functions as may be prescribed. \r\n______________ \r\n \r\n \r\nPage 20 of 53 \r\n \r\nCHAPTER-III \r\n \r\nFUNCTIONS AND DUTIES OF DEVELOPER \r\n \r\n11. Functions and duties of developer.—(1) The developer shall, upon receiving his \r\nLogin Id and password under clause (a) of sub -section (1) or under sub-section (2) of section 5, \r\nas the case may be, create his webpage on the website of the Authority and enter all details of the \r\nproposed project as provided under sub-section (2) of section 4, in all the fields as provided, for \r\npublic viewing, including— \r\n \r\n(a) details of the registration granted by the Authority; \r\n \r\n(b) quarterly up-to-date the list of number and types of apartments or plots, as the \r\ncase may be, booked; \r\n \r\n(c) quarterly up-to-date the list of number of garages booked; \r\n \r\n(d) quarterly up-to-date the list  of approvals taken and the approvals  which are \r\npending subsequent to commencement certificate; \r\n \r\n(e) quarterly up-to-date status of the project; and \r\n \r\n(f) such other information and documents as may be specified by the regulations \r\nmade by the Authority. \r\n \r\n(2) The advertisement or prospectus issued or published by the developer shall mention \r\nprominently the website address of the Authority, wherein all details of the registered project have \r\nbeen entered and include the  registration number obtained from the Authority and such other \r\nmatters incidental thereto. \r\n \r\n(3) The developer at the time of the booking and issue of allotment  letter shall be \r\nresponsible to make available to the allottee, the following information, namely:— \r\n \r\n(a) sanctioned plans, layout plans, along with specifications, approved by the an \r\nauthority empowered by law, by display at the site or such other place as may be \r\nspecified by the regulations made by the Authority; \r\n \r\n(b) the stage wise time schedule of completion of the project, including  the \r\nprovisions for civic infrastructure like water, sanitation and electricity. \r\n(4) The developer shall— \r\n \r\n(a) be responsible for all obligations, responsibilities and functions under the \r\nprovisions of this Act or the rules and regulations made  there under or to the \r\nallottees as per the agreement for sale, or to the  association of allottees, as the \r\ncase may be, till the conveyance of all the apartments, plots or buildings, as the \r\n \r\nPage 21 of 53 \r\n \r\ncase may be, to the allottees, or the common areas to the association of allottees \r\nor the an authority empowered by law, as the case may be: \r\n \r\n \r\nProvided that  the responsibility of  the developer, with respect  to the \r\nstructural defect or any other defect for such period as is  referred to in sub -\r\nsection (3) of section 14, shall continue even after  the conveyance deed of all \r\nthe apartments, plots or buildings, as the  case may be, to  the allottees are  \r\nexecuted; \r\n \r\n(b) be responsible to obtain the completion certificate or the occupancy  certificate, \r\nor both, as applicable, from the relevant an authority empowered by law as per \r\nlocal laws or other laws for the time being in force and to make it available to \r\nthe allottees individually or to the association of allottees, as the case may be; \r\n \r\n(c) be responsible to obtain the lease certificate, where the real estate  project is \r\ndeveloped on a leasehold land, specifying the period of  lease, and certifying \r\nthat all dues and charges in regard to the leasehold land has been paid, and to \r\nmake the  lease certificate available to the association of allottees; \r\n \r\n(d) be responsible for providing and maintaining the essential services,  on \r\nreasonable charges, till the taking over of the maintenance of the project by the \r\nassociation of the allottees; \r\n \r\n(e) enable the formation of an association or society or co-operative society, as the \r\ncase may be, of the allottees, or a federation of the  same, under  the laws \r\napplicable: \r\n \r\nProvided that in the absence of local laws, the association of allottees, by \r\nwhatever name called, shall be formed within a period  of three months of the \r\nmajority of allottees having booked their plot  or apartment or building, as the \r\ncase may be, in the project; \r\n \r\n(f) execute a registered conveyance deed of the apartment, plot or building, as the \r\ncase may be, in favour of the allottee alon g with the  undivided proportionate \r\ntitle in  the common areas  to the association  of allottees or an authority \r\nempowered by law, as the case may be, as provided under this Act; \r\n \r\n(g) pay all outgoings until he transfers the physical possession of the  real estate \r\nproject to the allottee or the associations of allottees, as the case may be, which \r\nhe has collected from the allottees, for the payment of outgoings (including land \r\ncost, ground rent, municipal or other local taxes, charges for water or electricity, \r\nmaintenance charges, including mortgage loan and interest on mortgages or \r\nother encumbrances and such other liabilities payable to competent authorities, \r\nbanks and financial institutions, which are related to the project): \r\n \r\nPage 22 of 53 \r\n \r\n \r\nProvided that where any developer fails to pay all or any of the outgoings \r\ncollected by him from the allottees or any liability, mortgage loan and interest \r\nthereon before transferring the real estate project to such allottees, or the \r\nassociation of the allottees, as the case may be, the developer shall continue to \r\nbe liable, even after the transfer of the property, to pay such outgoings and penal \r\ncharges, if any, to the authority or person to whom they are payable and be liable \r\nfor the cost of any legal proceedings which may be  taken therefore by such \r\nauthority or person; and \r\n \r\n(h) after he executes an agreement for sale for any apartment, plot or  building, as \r\nthe case may be, not mortgage or create a charge on  such apartment, plot or \r\nbuilding, as the case may be, and if any such mortgage or charge is made or \r\ncreated then notwithstanding anything contained in any other law for the time \r\nbeing in force, it  shall not affect the right and interest of the allottee who has \r\ntaken or agreed to take such apartment, plot or building, as the case may be. \r\n \r\n(5) The developer may cancel the allotment only in terms of the agreement for sale: \r\n \r\nProvided that the allottee may approach the Authority for relief, if he is aggrieved by such \r\ncancellation and such cancellation is not in accordance with the terms of the agreement for sale, \r\nunilateral and without any sufficient cause. \r\n(6) The developer shall prepare and maintain all such other details as  may be specified \r\nas required from time to time by Authority. \r\n \r\n12. Obligation of developer regarding veracity of the  advertisement or \r\nprospectus.—Where any person makes an advance or a deposit on the basis of the information \r\ncontained in the notice advertisement or prospectus, or on the basis of any model apartment, plot \r\nor building, as the case may be, and sustains \r\nany loss or damage by reason of any incorrect, false statement included therein,  he shall be \r\ncompensated by the developer in the manner as provided under this Act: \r\n \r\nProvided that if the person affected by such incorrect, false statement  contained in the \r\nnotice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, \r\nintends to withdraw from the proposed project, he shall be returned his entire investment along \r\nwith interest at such rate as may be prescribed and the compensation in the manner provided under \r\nthis Act. \r\n \r\n13. No deposit or advance to be taken by developer without first  entering into \r\nagreement for sale.—(1) A developer shall not accept a sum more  than ten per cent of the cost \r\nof the apartment, plot, or building as the case may be, as an advance payment or an application \r\nfee, from a person without first  entering into a written agreement for sale with such person and \r\nregister the said agreement for sale, under any law for the time being in force. \r\n \r\n(2) The agreement for sale referred to in sub-section (1) shall be in such form as may \r\n \r\nPage 23 of 53 \r\n \r\nbe prescribed and shall specify the particulars of development  of the project including the \r\nconstruction of building and apartments, along with  specifications and internal devel opment \r\nworks and external development works, the dates and the manner by which payments towards the \r\ncost of the apartment, plot or building, as the case may be, are to be made by the allottees and the \r\ndate on which the possession of the apartment, plot or building is to be handed over, the rates of \r\ninterest payable by the developer to the allottee and the allottee to the developer in case of default, \r\nand such other particulars, as may be prescribed. \r\n \r\n14. Adherence to sanctioned plans and project specifications by the developer.—(1) \r\nThe proposed project shall be developed and completed by the developer in accordance with the \r\nsanctioned plans, layout plans and specifications as approved by the authorities approved by the \r\nFederal Government. \r\n \r\n(2) Notwithstanding anything contained in any law, contract or agreement, after the \r\nsanctioned plans, layout plans and specifications and the nature of the fixtures, fittings, amenities \r\nand common areas, of the apartment, plot or building, as the case may be, as approved by the an \r\nauthority empowered by law, are disclosed or furnished to the person who agree to take one or \r\nmore of the said apartment, plot or building, as the case may be, the developer shall not make— \r\n \r\n(i) any additions and alterations in the sanctioned plans, layout plans  and \r\nspecifications and the nature of fixtures, fittings and amenities  described \r\ntherein in respect of the apartment, plot or building, as the case may be, \r\nwhich are agreed to be taken, without the previous consent of that person: \r\n \r\nProvided that the developer may make such minor additions or alterations \r\nas may be required by the allottee, or such minor changes or alterations as \r\nmay be necessary due to architectural and  structural reasons duly \r\nrecommended and verified by an authorized Architect or Engineer after proper \r\ndeclaration and intimation to the allottee. \r\n \r\nExplanation.—For the purpose of this section, “minor additions or \r\nalterations” excludes structural change including an  addition to the area or \r\nchange in height, or the removal of part of a  building, or any change to the \r\nstructure, such as the construction or  removal or cutting into of any wall or a \r\npart of a wall, partition, column, beam, joist, floor including a mezzanine floor \r\nor other support, or a change to or closing of any  required means of access  \r\ningress or egress or a change to the fixtures or equipment, etc., and \r\n \r\n(ii) any other alterations or additions in the sanctioned plans, layout  plans and \r\nspecifications of the buildings or the common areas within the project without \r\nthe previous written consent of at least  two-thirds of the allottees, other than \r\nthe developer, who have agreed to take apartments in such building. \r\n \r\nExplanation.—For the purpose of this clause, the allottees, irrespective of \r\nthe number of apartments or plots , as the case may  be, booked by him or \r\n \r\nPage 24 of 53 \r\n \r\nbooked in the name of his family, or in the  case of other persons such as \r\ncompanies or firms or any association  of individuals, etc., by whatever name \r\ncalled, booked in its name or  booked in the name of its associated  entities or \r\nrelated enterprises, shall be considered as one allottee only. \r\n \r\n(3) In case any structural defect or any other defect in workmanship, quality or provision \r\nof services or any other obligations of the developer as per the agreement for sale relating to such \r\ndevelopment is brought to the notice of the developer within a period of five years by the allottee \r\nfrom the date of handing  over possession, it shall be the duty of the developer to rectify such \r\ndefects without further charge, within thirty days, and in the event of developer‟s failure to rectify \r\nsuch defects within such time, the aggrieved allottees shall be entitled to receive appropriate \r\ncompensation in the manner as provided under this Act. \r\n \r\n15. Obligation of developer in case of transfer of a real estate project to a third \r\nparty.—(1) The developer shall not transfer or assign his majority rights and liabilities in respect \r\nof a real estate project to a third party without obtaining prior written consent from two-third \r\nallottees, except the developer, and without the prior written approval of the Authority: \r\n \r\nProvided that such transfer or assignment shall not affect the allotment or  sale of the \r\napartments, plots or buildings as the case may be, in the real estate project made by the erstwhile \r\ndeveloper. \r\n \r\nExplanation.—For the purpose of this sub-section, the allottee, irrespective of the number \r\nof apartments or plots, as the case may be, booked by  him or booked in the name of his family, \r\nor in the case of other persons such as  companies or firms or any association of individuals, by \r\nwhatever name called,  booked in its name or booked in the name of its associated entities or \r\nrelated enterprises, shall be considered as one allottee only. \r\n \r\n(2)   On the transfer or assignment being permitted by the allottees and the Authority under \r\nsub-section (1), the intending developer shall be required to  independently comply with all the \r\npending obligations under the provisions of this Act or the rules and regulations made thereunder, \r\nand the pending obligations as per the agreement for sale entered into by the erstwhile developer \r\nwith the allottees: \r\n \r\nProvided that any transfer or assignment permitted under provisions of  this section shall \r\nnot result in extension of time to the intending developer to  complete the real estate project and \r\nhe shall be required to comply with all the pending obligations of the erstwhile developer, and in \r\ncase of default, such intending developer shall be liable to the consequences of breach or delay, \r\nas the case may be, as provided under this Act or the rules and regulations made thereunder. \r\n \r\n16. Obligation of developer regarding insurance of real estate project.—(1) The \r\ndeveloper shall obtain all such insurances as may be notified  by the Authority, including but not \r\nlimited to insurance in respect of — \r\n \r\n(i) title of the land and building as a part of the real estate project; and \r\n \r\nPage 25 of 53 \r\n \r\n \r\n(ii) construction of the real estate project. \r\n \r\n(2) The developer shall be liable to pay the premium and charges in  respect of the \r\ninsurance specified in sub-section (1) and shall pay the same before transferring the insurance to \r\nthe association of the allottees. \r\n \r\n(3) The insurance as specified under sub-section (1) shall stand transferred to the benefit \r\nof the allottee or the association of allottees, as the case may be, at the time of developer entering \r\ninto an agreement for sale with the allottee. \r\n(4) On formation of the association of the allottees, all documents relating to the \r\ninsurance specified under sub-section (1) shall be handed over to the association of the allottees. \r\n \r\n17. Transfer of titles. —(1) The developer shall execute a registered  conveyance deed \r\nin favour of the allottee along with the undivided proportionate  title in the common areas to the \r\nassociation of the allottees or the an authority  empowered by law, as the case may be, and hand \r\nover the physical possession of the plot, apartment of building, as the case may be, to the allottees \r\nand the common areas to the association of the allottees or the an authority empowered by law, \r\nas the case may be, in a real estate project, and the other title documents pertaining thereto within \r\nspecified period as per sanctioned plans as provided under the local laws: \r\n \r\nProvided that, in the absence of any local law, conveyance deed in favour  of the allottee \r\nor the association of the allottees or the an authority empowered by law, as the case may be, under \r\nthis section shall be carried out by the developer  within three months  from date of  issue of  \r\noccupancy certificate. \r\n \r\n(2) After obtaining the occupancy certificate and handing over physical possession to the \r\nallottees in terms of sub-section (1), it shall be the responsibility of the developer to handover the \r\nnecessary documents and plans, including common areas, to the association of the allottees or the \r\nan authority empowered by law, as the case may be, as per the local laws: \r\n \r\nProvided that, in the absence of any local law, the developer shall handover the necessary \r\ndocuments and plans, including common areas, to the association of the allottees or the competent \r\nauthority, as the case may be, within thirty days after obtaining the occupancy certificate. \r\n18. Return of the amount and compensation. —(1) If the developer  fails to complete \r\nor is unable to give possession of an apartment, plot or building,— \r\n(a) in accordance with the terms of the agreement for sale or, as the  case may be, \r\nduly completed by the date specified therein; or \r\n(b) due to discontinuance of his business as a developer on account of  suspension \r\nor revocation of the registration under this Act or for any other reason, he shall \r\nbe liable on demand to the allottees, in case the allottee wishes to withdraw from \r\nthe project, without prejudice to any other remedy available, to return the \r\namount received by him in respect of that apartment, plot, building, as the case \r\n \r\nPage 26 of 53 \r\n \r\nmay be, with interest at such rate as may be prescribed in this  behalf including \r\ncompensation in the manner as provided under this Act: \r\nProvided that where an allottee does not intend to withdraw  from the \r\nproject, he shall be paid, by the developer, interest for every month of delay, till \r\nthe handing over of the possession, at such rate as may be mutually agreed in \r\nwriting between the Developer and the allottee otherwise the case shall be \r\ndecided by the Authority. \r\n \r\n(2) The developer shall compensate the allottees in case of any loss  caused to him due \r\nto defective title of the land, on which the project is being  developed or has been developed, in \r\nthe manner as provided under this Act, and  the claim for compensation under this sub-section \r\nshall not be barred by limitation provided under any law for the time being in force. \r\n \r\n(3) If the developer fails to discharge any other obligations imposed on  him under this \r\nAct or the rules or regulations made thereunder or in accordance with the terms and conditions of \r\nthe agreement for sale, he shall be liable to pay such compensation to the allottees or face penalties \r\nimposed upon him by the Authority after giving him an opportunity of hearing. \r\n \r\nCHAPTER IV \r\n \r\nRIGHTS AND DUTIES OF ALLOTTEES \r\n \r\n19. Rights and duties of allottees.—(1) The allottee shall be entitled to obtain the \r\ninformation relating to sanctioned plans, layout plans along with the  specifications, approved by \r\nthe an authority empowered by law and such other information as provided in this Act or the rules \r\nand regulations made thereunder or the agreement for sale signed with the developer. \r\n \r\n(2) The allottee shall be entitled to know stage-wise time schedule of completion of the \r\nproject, including the provisions for water, sanitation, electricity and other amenities and services \r\nas agreed to between the developer  and the allottee in accordance with the terms and conditions \r\nof the agreement for sale. \r\n \r\n(3) The allottee shall be entitled to claim the possession of apartment,  plot or building, \r\nas the case may be, and the association of allottees shall be entitled to claim the possession of the \r\ncommon areas, as per the declaration given by the developer under this Act. \r\n \r\n(4) The allottee shall be entitled to claim the refund of amount paid  along with interest \r\nat such rate as may be prescribed and compensation in the  manner as provided under this Act, \r\nfrom the developer, if the developer fails to  comply or is unable to give possession of the \r\napartment, plot or building, as the  case may be, in accordance with the terms of agreement \r\nfor sale or due to \r\ndiscontinuance of his business as a developer on account of suspension or revocation of his \r\nregistration under the provisions of this Act or the rules or regulations made thereunder. \r\n \r\n \r\nPage 27 of 53 \r\n \r\n(5) The allottee shall be en titled to have the necessary documents and  plans, including \r\nthat of common areas, after handing over the physical possession  of the apartment  or plot  or \r\nbuilding as the case may be, by the developer. \r\n \r\n(6) Every allottee, who has entered into an agreement for sale to take an apartment, plot \r\nor building as the case may be, under this Act, shall be responsible to make necessary payments \r\nin the manner and within the time as specified in the said agreement for sale and shall pay at the \r\nproper time and place, the share of the registration charges, municipal taxes, water and electricity \r\ncharges, maintenance charges, ground rent, and other charges, if any. \r\n \r\n(7) The allottee shall be liable to pay interest, at such rate as may be prescribed, for any \r\ndelay in payment towards any amount or charges to be paid under as undertaken under this Act. \r\n \r\n(8) The obligations of the allottee as undertaken under this Act and the liability towards \r\ninterest under as undertaken under this Act may be reduced when mutually agreed to between \r\nthe developer and such allottee. \r\n \r\n(9) Every allottee of the apartment, plot or building as the case may be,  shall participate \r\ntowards the formation of an association or society or cooperative  society of the allottees, or a  \r\nfederation of the same. \r\n \r\n(10) Every allottee shall take physical possession of the apartment, plot or building as the \r\ncase may be, within a period of two months of the occupancy  certificate issued for the said \r\napartment, plot or building, as the case may be. \r\n \r\n(11) Every allottee shall participate towards registration of the conveyance deed of the \r\napartment, plot or building, as the case may be, as provided under this Act. \r\n \r\nCHAPTER V \r\n \r\nTHE REAL ESTATE REGULATORY AUTHORITY \r\n \r\n20. Establishment and incorporation of Real Estate Regulatory Authority.—(1) The \r\nFederal Government shall, within a period of one year from the date of coming into force of this \r\nAct, by notification, establish an Authority to be known as the Real Estate Regulatory Authority \r\nto exercise the powers conferred on it and to perform the functions assigned to it under this Act: \r\nProvided that until the establishment of the Authority under this section, the Ministry shall, \r\nby order in the transitory period, designate any other Authority to function as the Authority for the \r\npurposes under this Act: \r\n \r\nProvided also that after the establishment of the Regulatory Authority, all  applications, \r\ncomplaints or cases pending with the Regulatory Authority designated, shall stand transferred to \r\nthe Regulatory Authority so established and  shall be heard from the stage such applications, \r\ncomplaints or cases are transferred. \r\n \r\n \r\nPage 28 of 53 \r\n \r\n(2) The Authority shall be a body corporate by the name aforesaid  having perpetual \r\nsuccession and a common seal, with the power, subject to the provisions of this Act, to hold and \r\ndispose of property, both movable and immovable, and to contract, and shall, by the said name, \r\nsue or be sued. \r\n \r\n(3) On coming into force of this  Act, the Ministry shall appoint a person, after due \r\nprocess of advertisement, as a senior administrative officer of  the Authority who shall do all the \r\nfile work for establishment of the Authority and he shall have the responsibility to take any or all \r\nsteps to get released the seed money from the Government and shall have the authority to spend \r\nfrom the seed money and shall get allocated suitable premises for the office of the Authority and \r\nfor this purpose he shall have the authority to use the powers of the  authority and the Ministry of \r\nInterior Government of Pakistan shall extend all  possible help to him as and when requi red by \r\nhim. The senior administrative officer shall continue to be an employee of the Authority after the \r\nChairperson of the Authority assumes charge. \r\n \r\n21. Composition of the Authority. —(1) The Authority shall consist of  following six \r\nMembers which shall be notified by the Ministry in the official Gazette, namely:— \r\n \r\n(a) one member to be nominated by the Chairperson of the Pakistan  Engineering \r\nCouncil from amongst the members of the Pakistan Engineering Council; \r\n \r\n(b) one member to be nominated by the Chairperson of th e Pakistan Council of \r\nArchitects and Town Planners from amongst the members of the Pakistan \r\nCouncil of Architects and Town Planners; \r\n \r\n(c) one member to be nominated by the Speaker of the National Assembly from \r\namongst the members of the National Assembly; \r\n \r\n(d) one member to be nominated by the Chairman Senate from amongst the  \r\nmembers of the Senate; \r\n(e) two members to be selected by a Selection Committee consisting of  the Mayor \r\nof Islamabad and Chairman, CDA and Joint Secretary  Administration of \r\nMinistry of Interior. The selection of members of  the Authority shall be made \r\nfrom amongst the applicants having post graduate qualification in any field and \r\nwho are residents of Islamabad for at least forty years and have at least twenty-\r\nfive years‟ experience of Government service. \r\n \r\n(2) All the persons shall be nominated and selected as members of the  Authority by the \r\nconcerned and shall be notified by the Ministry within sixty days of coming into force of this Act \r\nwithout fail. \r\n \r\n(3) As soon as the members have been notified, the Ministry shall call the first meeting \r\nwhere the members of the Authority shall elect a Chairperson of  the authority from amongst \r\nthemselves for  a term of five years or till expiry of  his term as a member  of the  authority \r\nwhichever is longer: \r\n \r\nPage 29 of 53 \r\n \r\n \r\nProvided the members are unable to elect a Chairman of the authority,  then the Ministry \r\nof Interior shall nominate one member of the Authority as the  Chairman of the Authority for a \r\nterm of five years or till expiry of his term as a member of the Authority whichever is longer. \r\n \r\n(4) The Quorum of the First meeting and subsequent meetings shall be four members of \r\nthe Authority present and voting. \r\n \r\n(5) The Chairperson of the Authority shall be notified by the Ministry in the official \r\nGazette for a term of five years or till expiry of his term as a member of the authority whichever \r\nis longer. \r\n \r\n(6) The Chairperson and the members shall dedicate maximum time to  the work of the \r\nAuthority and preferably work on fulltime basis. \r\n \r\n(7) If there falls a vacancy of a member, such vacancy shall be filled by the relevant \r\nAuthorities within thirty days without fail. \r\n \r\n(8) The Authority can co-opt any number of technical experts of a field  in a meeting of \r\nthe Authority as it may deem fit and pay them a reasonable honorarium for their services. \r\n \r\n22. Age limit of  the Chairperson and Members of the Authority on  appointment \r\nand age of superannuation.—The Chairperson and other Members of the Authority shall be \r\nbelow the age of sixty five years on the date of appointment and shall cease to be The Chairperson \r\nand other Members of the Authority upon attaining the age of sixty five years. \r\n23. Terms of office of Chairperson and Members of the Authority.—(1) The \r\nChairperson and Members shall hold office for a term not  exceeding five years from the date on \r\nwhich they enter upon their office, or until  they attain the age of sixty five years, whichever  is \r\nearlier and shall not be eligible for re-appointment. \r\n \r\n(2) Before appointing any person as a Chairperson or Member, the  Ministry shall satisfy \r\nitself that the person does not have  any such financial or  other interest as is  likely to affect \r\nprejudicially his functions as such Member. \r\n \r\n24. Salary and allowances payable to Chairperson and Members of the Authority.—\r\nThe salary and allowances payable to, and the other terms and  conditions of  service of, the \r\nChairperson and other Members shall be such as prescribed by the Federal Government and shall \r\nnot be varied to their disadvantage during their tenure. \r\n \r\n25. Resignation and removal of the Chairperson and Members of  Authority.—(1) \r\nNotwithstanding anything contained in sub-sections (1) of section 23, the Chairperson  or a  \r\nMember, as the case may be, may,— \r\n \r\n(a) relinquish his office by giving in writing, to the Federal Government, notice \r\nof not less than three months; or \r\n \r\nPage 30 of 53 \r\n \r\n \r\n(b) be removed from his office in accordance with the provisions of section 27 \r\nof this Act. \r\n \r\n(2) Any vacancy caused to the office of the Chairperson or any other  Member shall be \r\nfilled-up within a period of three months from the date on which such vacancy occurs. \r\n \r\n26. Administrative powers of the Chairperson.—The Chairperson shall be the Chief \r\nExecutive and the Principal Accounting Officer of the authority and shall have powers of general \r\nsuperintendence and directions in the conduct of the affairs of Authority and he shall, in addition \r\nto presiding over the  meetings of the Authority, exercise and discharge such administrative \r\npowers and functions of the Authority as may be prescribed. \r\n \r\n27. Removal of Chairperson and Members from office in certain  circumstances.—\r\n(1) The Federal Government may, in accordance with the procedure notified, remove from office \r\nthe Chairperson or other Members, if the  Chairperson or such other  Member, as the case may \r\nbe,— \r\n \r\n(a) has been adjudged as an insolvent; or \r\n \r\n(b) has been convicted of an offence, involving moral turpitude; or \r\n(c) has become physically or mentally incapable of acting as a Member; or \r\n \r\n(d) has acquired such financial or other interest as is likely to affect  prejudicially \r\nhis functions; or \r\n \r\n(e) any complaint of administrative or financial irregularity and illegality by misuse \r\nof his authority as the Chairman of the authority. \r\n \r\n(2) The Chairperson of the Authority shall be removed from office as  member and as \r\nChairperson by the Federal Government only once charges against him are adjudged by the  \r\nappellate tribunal after inquiry. An inquiry about  any allegation administrative or financial \r\nirregularity and illegality by misuse of  his authority as the Chairperson of the authority or any \r\nother charge in sub - section (1) above shall be done by an inqu iry officer appointed by the \r\nappellate tribunal. The Chairperson of the Authority so under trial shall be informed of the charges \r\nagainst him and given a reasonable opportunity of being heard in respect  of those charges and \r\nonly then the appellate tribunal  shall pass a decision on the  charges whether the continuance in \r\noffice of the chairperson is prejudicial to the public interest or otherwise. \r\n \r\n(3) A member of the Authority shall be removed from office as member by the Federal \r\nGovernment only once charges against him are adjudged by the appellate tribunal after inquiry. \r\nAn inquiry about any allegation administrative or financial irregularity and illegality by misuse \r\nof his authority as the member of the authority or any other charge in sub -section (1) above shall \r\nbe done by an inquiry officer appointed by the appellate tribunal. The member of the Authority so \r\nunder trial shall be informed of the charges against him and given a  reasonable opportunity of \r\n \r\nPage 31 of 53 \r\n \r\nbeing heard in respect of those charges and only then  the appellate tribunal shall pass a decision \r\non the charges whether the continuance in office of the chairperson is prejudicial to the public \r\ninterest or otherwise. \r\n \r\n28. Restriction on Chairperson or Members on employment after  cessation of \r\noffice.—(1) The Chairperson or a Member, ceasing to hold office as such, shall not— \r\n \r\n(a) accept any employment in, or connected with, the management or  \r\nadministration of, any person or organization which has been associated with \r\nany work under this Act, from the date on which he ceases to hold office: \r\n \r\nProvided that nothing contained in this section shall apply to any \r\nemployment under the Federal Government or a local authority \r\nor in any statutory authority or any corporation established by or  under any \r\nFederal Act or a Government Company, whose majority shares are held by the \r\nFederal or Provincial Government, which is  not a developer as  per the \r\nprovisions of this Act; \r\n \r\n(b) act, for or on behalf of any person or organization in connection  with any \r\nspecific proceeding or trans action or negotiation or a case  to which the \r\nAuthority is a party and with respect to which the Chairperson or such Member \r\nhad, before cessation of office, acted for or provided advice to, the Authority; \r\n \r\n(c) give advice to any person using information which was obtained in his capacity \r\nas the Chairperson or a Member and being unavailable  to or not being able to \r\nbe made available to the public; and \r\n \r\n(d) enter into a contract of service with, or accept an appointment to a  board of \r\ndirectors of, or accept an offer of employment with, an entity with which he had \r\ndirect and significant official dealings during his term of office as such. \r\n \r\n(2) The Chairperson and Members shall not communicate or reveal to  any person any \r\nmatter which has been brought under his consideration or known to him while acting as such. \r\n \r\n29. Officers and other employees of Authority.—(1) The Authority shall appoint such \r\nofficers and employees, on regular basis or contract basis and  appoint inquiry officer or \r\nconsultants on case to case basis on remunerations decided by the Authority as it considers \r\nnecessary for the efficient discharge of  functions of the Authority and such employees would \r\ndischarge their functions under the general superintendence of the Chairperson. \r\n \r\n(2) The salary and allowances payable to, and the other terms and conditions of service \r\nof, the officers and of the employees of the Authority shall be that as decided by the Authority at \r\nthe time of appointment of the employee.  The Authority shall make rules governing the service \r\nof the regular employees of the Authority and the Federal Government shall publish these rules in \r\nthe official Gazette as statutory rules. \r\n \r\nPage 32 of 53 \r\n \r\n \r\n30. Meetings of Authority.—(1) The Authority shall meet at such places and times, and \r\nshall follow such rules of procedure in regard to the transaction of its business, as may be specified \r\nby the regulations made by the Authority. \r\n(2) If the Chairperson for any reason, is unable to attend a meeting of the Authority, any \r\nother Member chosen by the Members present amongst themselves at the meeting, shall preside \r\nat the meeting. \r\n \r\n(3) All questions which come up before any meeting of the Authority  shall be decided \r\nby a majority of votes by the Members present and voting, and in the event of an equality of \r\nvotes, the Chairperson or in his absence, the person presiding shall have a second or casting vote. \r\n \r\n(4) The questions which come up before the Authority shall be dealt  with as \r\nexpeditiously as possible and the Authority shall dispose of the same within a period of sixty days \r\nfrom the date of receipt of the application: \r\n \r\nProvided that where any such application could not be disposed of within  the said period \r\nof sixty days, the Authority shall record its reasons in writing for not disposing of the application \r\nwithin that period. \r\n \r\n31. Vacancies etc. not to invalidate proceeding of Authority. —No act or proceeding \r\nof the Authority shall be invalid merely by reason of— \r\n \r\n(a) any vacancy in, or any defect in the constitution of, the Authority; or \r\n \r\n(b) any defect in the appointment of a person acting as a Member of the Authority; or \r\n \r\n(c) any irregularity in the procedure of the Authority not affecting the merits of the \r\ncase. \r\n \r\n32. Filing of complaints with the Authority.—(1) Any aggrieved person may file a \r\ncomplaint with the Authority, for any violation or contravention of the provisions of this Act or \r\nthe rules and regulations made thereunder against any other Authority , Department , developer, \r\nallottee or real estate agent, as the case may be. \r\nExplanation.—For the purpose of this sub-section “person” shall include the association \r\nof allottees or any voluntary consumer association registered under any law for the time being in \r\nforce. \r\n \r\n(2) The form, manner and fees for filing complaint under sub-section \r\n(1) shall be such as may be specified by regulations. \r\n \r\n33. Functions of Authority for Promotion of real estate sector.— The Authority shall \r\nin order to facilitate the growth and promotion of a healthy, transparent, efficient and competitive \r\nreal estate sector make recommendations to \r\n \r\nPage 33 of 53 \r\n \r\nthe Federal Government of the an authority empowered by law , as the case may be, on,— \r\n \r\n(a) protection of interest of the allottees, developer and real estate agent; \r\n \r\n(b) creation of a single window system for ensuring time bound project  approvals and \r\nclearances for timely completion of the project; \r\n \r\n(c) creation of a transparent and robust grievance redressal mechanism  against acts of \r\ncommission and commission of competent authorities and their officials; \r\n \r\n(d) measures to encourage investment in the real estate sector including  measures to \r\nincrease financial assistance to affordable housing segment; \r\n \r\n(e) measures to encourage construction of environmentally sustainable  and affordable \r\nhousing, promoting standardization and use of appropriate construction materials, \r\nfixtures, fittings and construction techniques; \r\n \r\n(f) measures to encourage grading of projects on various parameters of  development \r\nincluding grading of developers; \r\n \r\n(g) measures to facilitate amicable conciliation of disputes between the  developers and \r\nthe allottees through dispute settlement forums set up by the consumer or developer \r\nassociations; \r\n \r\n(h) measures to facilitate digitization of land records and system towards conclusive \r\nproperty titles with title guarantee; \r\n \r\n(i) to render advice to the Federal Government in matters relating to the development \r\nof real estate sector; and \r\n \r\n(j) any other issue that the Authority may think necessary for the promotion of the real \r\nestate sector. \r\n \r\n34. Advocacy and awareness measures.—(1) The Federal Government may, while \r\nformulating a policy on real estate sector (including review of laws related to real estate sector) \r\nor any other matter, make a reference  to the Authority for its opinion on possible effect, of such \r\npolicy or law on real estate sector and on the receipt of such a reference, the Authority shall within \r\na period of sixty days of making such reference, give its opinion to the Federal Government which \r\nmay thereafter take further action as it deems fit. \r\n(2) The opinion given by the Authority under sub -section (1) shall not be binding upon \r\nthe Federal Government in formulating such policy or laws. \r\n \r\n(3) The Authority shall take suitable measures for the promotion of  advocacy, creating \r\nawareness and imparting training about laws relating to real estate sector and policies. \r\n \r\n \r\nPage 34 of 53 \r\n \r\n35. Functions of Authority.—The functions of the Authority shall include— \r\n \r\n(a) to register and regulate real estate projects and real estate agents registered under this \r\nAct; \r\n \r\n(b) to publish and maintain a website of records, for public viewing, of  all real estate \r\nprojects for which registration has been given, with  such details as may be \r\nprescribed, including information provided in the application for which registration \r\nhas been granted; \r\n \r\n(c) to maintain a database, on its website, for public viewing, and enter  the names and \r\nphotographs of developers as defaulters including the project details, registration \r\nfor which has been revoked or have  been penalized under this Act, with reasons \r\ntherefor, for access to the general public; \r\n \r\n(d) to maintain a database, on its website, for public viewing, and enter  the names and \r\nphotographs of real estate agents who have applied  and registered under this Act, \r\nwith such details as may be prescribed, including those whose registration has been \r\nrejected or revoked; \r\n(e) to fix through regulations for each areas under its jurisdiction the standard fees to be \r\nlevied on the allottees or the developer or the real estate agent, as the case may be; \r\n \r\n(f) to ensure compliance of the obligations cast upon the developers,  the allottees and \r\nthe real estate agents under this Act and the rules and regulations made thereunder; \r\n \r\n(g) to ensure compliance of its regulations or orders or directions made in exercise of its \r\npowers under this Act; and \r\n \r\n(h) to perform such other functions as may be entrusted to the Authority by the Federal \r\nGovernment as may be necessary to carry out the provisions of this Act. \r\n36. Power of Authority to delegate any of its functions to another  Authority or \r\nDepartment.—The Authority, may temporarily delegate any of its function to another authority \r\nor Department on its own or upon an application to  the Authority by another authority or \r\nDepartment. \r\n \r\n37. Powers of Authority to call for information and conduct inquiry and make \r\nassessments.—(1) Where the Authority considers it expedient to do so, on a complaint or suo \r\nmotu, relating to this Act or the rules or regulations made there under, it may, by order in writing \r\nand recording reasons therefor call upon any developer or allottee or real estate agent, as the case \r\nmay be, at any time to furnish in writing such information or explanation relating to its affairs \r\nas the Authority may require and appoint one or more persons to make  an inquiry in relation to \r\nthe affairs of any developer or allottee or the real estate agent, as the case may be. \r\n \r\n(2) Notwithstanding anything contained in any other law for the time being in force, while \r\n \r\nPage 35 of 53 \r\n \r\nexercising the powers under sub -section (1), the Authority  shall have the same powers as are \r\nvested in a civil court under the Code of Civil  Procedure, 1908 while trying a suit, in respect of \r\nthe following matters, namely:— \r\n \r\n(i) the discovery and production of books of account and other documents, at such \r\nplace and at such time as may be specified by the Authority; \r\n \r\n(ii) summoning and enforcing the attendance of persons and examining  them on \r\noath; \r\n \r\n(iii) issuing commissions for the examination of witnesses or documents; and \r\n \r\n(iv) any other matter which may be prescribed. \r\n \r\n38. Powers of Authority. —(1) The Authority shall have powers to  impose penalty or \r\ninterest, in regard to any contravention of obligations cast upon the developers, the allottees and \r\nthe real estate agents, under this Act or the rules and the regulations made thereunder. \r\n \r\n(2) The Authority shall be guided by the principles of natural justice  and, subject to the \r\nother provisions of this Act and the rules made thereunder, the  Authority shall have powers to  \r\nregulate its own procedure. \r\n \r\n(3) Where an issue is raised relating to agreement, action, omission,  practice or \r\nprocedure that— \r\n(a) has an appreciable prevention, restriction or distortion of competition in \r\nconnection with the development of a real estate project; or \r\n \r\n(b) has effect of market power of monopoly situation being abused for  affecting \r\ninterest of allottees adversely, then the  Authority, may take suo motu, make \r\nreference in respect of such issue to the Competition Commission of Pakistan \r\nor the appellate tribunal under this Act . \r\n \r\n(4) All proceedings before the Authority shall be deemed to be judicial  proceedings \r\nwithin the meaning of Section 193 and 228 of the Pakistan Penal Code, 1860 (Act XLV of 1860) \r\nand the Authority shall be deemed to be a court  for the purposes of section 480 and 482 of the \r\nCode of Criminal Procedure, 1898 (Act V of 1898 ). No court other than Authority shall have or \r\nexercise any jurisdiction with respect to any matter to which the jurisdiction of Authority extends \r\nunder this Act. \r\n \r\n(5) A person against whom a complaint has been made or any contravention of this Act \r\nhas come to the knowledge of the Authority by any  means shall be proceeded against by the \r\nAuthority. A complainant or a person  against whom a complaint has been made or who has \r\npurportedly committed any  contravention of this Act can be represented by his duly appointed \r\ncounsel or representative. The Authority can summon the applicant or appellant or complainant \r\nor the person against whom the complaint has been directed to  appear in person before  the \r\n \r\nPage 36 of 53 \r\n \r\nAuthority. \r\n \r\n39. Powers to issue interim orders. —Where during an inquiry, the  Authority is \r\nsatisfied that an act in contravention of this Act, or the rules and regulations made thereunder, has \r\nbeen committed and continues to be committed  or that such act is about to be committed, the \r\nAuthority may, by order, restrain  any developer, allottee or real estate agent from carrying on \r\nsuch act until the conclusion of such inquiry or until further orders, without giving notice to such \r\nparty, where the Authority deems it necessary. \r\n \r\n40. Powers of Authority to issue directions. —The Authority may, for  the purpose of \r\ndischarging its functions under the provisions of this Act or rules or regulations made thereunder, \r\nissue such directions from time to time, to the developers or allottees or real estate agents, as the \r\ncase may be, as it may consider necessary. \r\n \r\n(2) All directions of the Authority shall be binding on all Law enforcement agencies in \r\nIslamabad and the District Administration which shall act in assistance of the Authority. \r\n41. Orders of recovery of interest or penalty or compensation and  enforcement of \r\nOrder etc.—(1) If a developer or an allottee or a real estate agent, as the case may be, fails to pay \r\nany interest or penalty or compensation imposed on him, by the inquiry officer or the Regulatory \r\nAuthority or the Appellate Authority, as the case may be, under this Act or the rules and \r\nregulations made thereunder, it shall be recoverable from such developer or allottee or real estate \r\nagent, in such manner as may be prescribed as an arrears of land revenue. \r\n \r\n(2) If any inquiry officer or the Regulatory Authority or the Appellate  Tribunal, as the \r\ncase may be, issues any o rder or directs any person to do any act,  or refrain from doing any act, \r\nwhich it is empowered to do under this Act or the  rules or regulations made thereunder, then in \r\ncase of failure by any person to comply with such order or direction, the same shall be enforced, \r\nthrough the Law enforcement agencies in Islamabad and the District Administration which shall  \r\nact in assistance of the Authority. \r\n \r\n(3) If any inquiry officer or the Regulatory Authority or the Appellate Tribunal passes a \r\npenalty. \r\n \r\n42. Rectification and review of orders. —The Authority may, at any  time within a \r\nperiod of two years from the date of the order made under this Act, with a view to rectifying any \r\nmistake apparent from the record, amend any order passed by it, and shall make such amendment, \r\nif the mistake is brought to its notice by the parties: \r\n \r\nProvided that no such amendment shall be made in respect of any order against which an \r\nappeal has been preferred under this Act: \r\n \r\nProvided further that the Authority shall not, while rectifying any mistake apparent from \r\nrecord, amend substantive part of its order passed under the provisions of this Act. \r\n \r\nCHAPTER VI \r\n \r\nPage 37 of 53 \r\n \r\n \r\nOFFENCES, PENALTIES AND ADJUDICATION \r\n \r\n43. Punishment for non-registration by a Developer.—(1) If any developer is \r\nworking without having valid registration with the Authority or when his registration has been \r\nrevoked by the Authority, his such working shall  be considered an offence punishable with a \r\npenalty which may extend up to ten  per cent of the estimated cost of the real estate project  as \r\ndetermined by the  Authority and the Authority may sentence such developer to six months \r\nimprisonment. \r\n(2)    If any developer does not comply with his duties and undertakings to the allottee and \r\nthe authority and does not comply with the orders, decisions or directions issued by the Authority, \r\nhe shall be punishable with imprisonment for a term which may extend up to three years or with \r\nfine which may extend up to a further ten percent of the estimated cost of the real estate project, \r\nor with both and shall not remain eligible for registration as a developer or work as a developer \r\nwithin the Jurisdiction of Islamabad Capital territory. \r\n \r\n44. Penalty for providing false information.—If any developer provides false \r\ninformation or contravenes the provisions of section 4, he shall be liable to a penalty which may \r\nextend up to five percent of the estimated cost of  the real estate project, as  determined by the \r\nAuthority. \r\n \r\n45. Punishment for non-registration by a Real Estate Agent.—If any Real Estate \r\nAgent is working without having valid registration with the Authority or when his registration has \r\nbeen revoked by the Authority , his such working shall be considered an offence punishable with \r\na penalty as may b e determined and imposed by the Authority and the Authority may sentence \r\nsuch Real Estate Agent to six months imprisonment and he shall not remain eligible for \r\nregistration as a Real Estate Agent or work as Real Estate Agent within the  Jurisdiction of \r\nIslamabad Capital Territory. \r\n \r\n46. Penalty for failure to comply with orders of Authority by Developer.—If any \r\ndeveloper, who fails to comply with, or contravenes any of  the orders or directions of the \r\nAuthority, he shall be liable to a penalty for every day during which such default continues, which \r\nmay cumulatively extend up to  five per cent, of the estimated cost of the real estate project as \r\ndetermined by the Authority. \r\n47. Penalty for failure to comply with orders of Authority by allottee.—If any \r\nallottee, who fails to comply with, or contravenes any of the orders, decisions or directions of the \r\nAuthority he shall be liable to a penalty for the period during which such default continues, which \r\nmay cumulatively extend  up to five percent of the plot, apartment or building cost, as the case \r\nmay be, as determined by the Authority. \r\n \r\n48. Penalties of violation of provisions of this Act by a Developer or  any Office \r\nBearers of any other Authority or Department or Company or Developer, etc. by Developers \r\nand Companies.—(1) Where any contravention of this Act or any offence under this Act has \r\nbeen committed by a company, every person who, at the time the offence was committed, was \r\nin charge of, or was responsible to the company for the conduct of the business of the company,  \r\n \r\nPage 38 of 53 \r\n \r\nas well as the company, shall be deemed to be guilty of the offence and shall be  liable to be \r\nproceeded against and punished accordingly: \r\nProvided that nothing contained in this sub-section, shall render any such person liable to \r\nany punishment under this Act if he proves that the offence was committed without his knowledge \r\nor that he had exercised all due diligence to prevent the commission of such offence. \r\n \r\n(2) Notwithstanding anything contained in sub-section (1), where an offence under this \r\nAct has been committed by a company and it is proved that the offence has been committed with \r\nthe consent or connivance of, or is attributable  to any negligence on the part of any director or \r\nemployee of the company, such  director or employee shall also be deemed to be gu ilty of that \r\noffence and shall be liable to be proceeded against and punished accordingly. \r\n \r\nExplanation.—For the purpose of this section,— \r\n \r\n(a) “company” means any body corporate and includes a firm, or other \r\nassociation of individuals; and \r\n \r\n(b) “director” in relation to a firm, means a partner in the firm. \r\n \r\n(3) Where any contravention of this Act has been committed by a Developer, a local \r\nauthority, a local Government or a body corporate or institution and it appears from the relevant \r\ndocuments that such offence has been committed with the consent or connivance of or is attributed \r\nto any negligence on  the part of any director, partner, manager, secretary or other officer of the \r\nbody corporate or institution such director, partner, manager, secretary or other officer of the body \r\ncorporate or institution, shall be deemed guilty of such contravention  along with the body \r\ncorporate or institution and shall be an offence punishable by  the Authority by a sentence of \r\nimprisonment for a term which may extend to one  year but shall not be less than six months, or \r\nwith fine which may extend to Five Hundred Thousand Rupees: \r\n \r\nProvided that in the case of a company as defined under the Companies  Act, 2017 (XIX \r\nof 2017), only its Chief Executive shall be liable under this section. \r\n \r\nExplanation.—For the purposes of this section, “body corporate or institution” includes \r\na firm, association of persons and a society registered under the Societies Registration Act, 1860 \r\n(XXI of 1860) or under the Co-operative Societies Act, 1925 (VII of 1925). \r\n \r\n(4) Where any contravention of this Act has been committed by any  Government \r\nAgency, any local authority or local Council and it appears from the relevant documents that such \r\ncontravention has been committed with the consent  or connivance of or is attr ibutable to any \r\nnegligence on the part of the Head or  any other officer of the Government Agency, local \r\nauthority or local Council, \r\nsuch Head or other officer it shall be an offence punishable by the Authority by a  sentence of \r\nimprisonment for a term which may extend to one year but shall not  be less than six months, or \r\nwith fine which may extend to Five Hundred Thousand Rupees. \r\n \r\nPage 39 of 53 \r\n \r\n \r\n49. Compounding of Offences. —Notwithstanding anything contained  in the Code of \r\nCriminal Procedure, if any person is punished with imprisonment under this Act, the punishment \r\nmay, either before or after the institution of the prosecution, be compounded by the court on such \r\nterms and conditions and on payment of such sums as may be prescribed: \r\n \r\nProvided that the sum prescribed shall not, in any case, exceed the maximum amount of \r\nthe fine which may be imposed for the offence so compounded. \r\n                                                                             ______________ \r\n \r\nCHAPTER VII \r\n \r\nTHE REAL ESTATE APPELLATE TRIBUNAL \r\n \r\n50. Establishment of the Real Estate Appellate Tribunal. —(1) The  Federal \r\nGovernment shall, within a period of three months from the date of coming into force of this Act, \r\nby notification, establish an Appellate Tribunal to be known as the Federal Real Estate Appellate \r\nTribunal. \r\n \r\n(2)    The Federal Government may, if it deems necessary, establish one or more benches \r\nof the Appellate Tribunal, for various jurisdictions, as the case may be: \r\n \r\nProvided that, until the establishment of an Appellate Tribunal under th is section, the \r\nFederal Government shall designate, by order, any Appellate Tribunal Functioning under any \r\nlaw for the time being in force, to be the Appellate Tribunal to hear appeals under the Act. \r\n \r\n51. Composition of Appellate Tribunal.—The each bench of the Appellate Tribunal \r\nshall consist of three Members. \r\n \r\n52. Appointment and Qualification of  Chairperson and Members  of Appellate \r\nTribunal.—(1) A person shall not be qualified for appointment as  the Chairperson unless he is \r\nor has been a Judge of a High Court and shall be appointed by the Ministry of Law, Government \r\nof Pakistan; \r\n \r\n(2) in the case of other members, a person shall not be qualified for  appointment if he \r\nhas not held the post of Joint Secretary to the Government of Pakistan or an equivalent post in the \r\nFederal Government or an equivalent post in the Provincial Government or a statutory autonomous \r\nbody. \r\n(3) The Chairperson or a Member of the Tribunal, as the case may be, shall not be below \r\nthe age of sixty years. \r\n \r\n(4) The Chairperson of the Appellate Tribunal shall be appointed by the Ministry of \r\nLaw, Government of Pakistan in consultation with the Mayor of  Islamabad which shall not be \r\nbinding on the Ministry of Law, Government of Pakistan in this regard. \r\n \r\n \r\nPage 40 of 53 \r\n \r\n(5) The other members of the Appellate Tribunal shall be ap pointed by the Ministry of \r\nInterior, Government of Pakistan on the recommendations of a  Selection Committee consisting \r\nof the Mayor of Islamabad, the Chairman CDA and Joint Secretary of the Ministry of Interior and \r\nJoint Secretary of the Ministry of Law. \r\n \r\n(6) The Chairperson and the members of the Appellate Tribunal shall be notified in the \r\nofficial Gazette by the Ministry of Interior, Government of Pakistan. \r\n \r\n53. Term of Office of Chairperson and Members.—(1) The Chairperson of the \r\nAppellate Tribunal or a Member of the Appellate Tribunal  shall hold office, as such for a term \r\nnot exceeding five years from the date on which he enters upon his office, but shall not be eligible \r\nfor re-appointment: \r\n \r\nProvided that the Chairperson or member of the Tribunal, he shall not hold office \r\nafter he has attained the age of sixty-five years. \r\n \r\n(2) Before notifying any person as Chairperson or Member, the Ministry of Interior, \r\nGovernment of Pakistan shall satisfy itself that the person  does not have any such financial or \r\nother interest, as is likely to affect prejudicially his functions as such member. \r\n \r\n54. Salary and allowances payable to Chairperson and Members of  the Appellate \r\nTribunal.—The salary and allowances payable to, and the other terms and conditions of service \r\nof, the Chairperson and other Members shall be  such as may be prescribed by the Federal \r\nGovernment and shall not be varied to their disadvantage during their tenure. \r\n \r\n55. Resignation and Removal of Chairperson and Members of the  Appellate \r\nTribunal.—Notwithstanding any thing contained in section 52 and 53,  the Chairperson or a  \r\nMember, as the case may be, may:— \r\n \r\n(a) relinquish his office by giving in writing to the Federal Government a notice of not \r\nless than three months; and \r\n(b) be removed from his office in accordance with the provisions of section 57. \r\n \r\n56. Filling of vacancies.—A vacancy caused to the office of the Chairperson or any \r\nother Member, as the case may be, shall be filled -up by the relevant authorities and the process \r\nwithin a period of one month from the date on which such vacancy occurs. \r\n \r\n57. Removal of Chairperson and Members from office in certain  circumstances.—\r\n(1) The Federal Government may, in consultation with the Mayor of Islamabad, remove from \r\noffice of the Chairperson or any Member of the Appellate Tribunal, who— \r\n(a) has been adjudged as an insolvent; or \r\n \r\n(b) has been convicted of an offence which, in the opinion of the Federal \r\nGovernment involves moral turpitude; or \r\n \r\nPage 41 of 53 \r\n \r\n \r\n(c) has become physically or mentally incapable; or \r\n \r\n(d) has acquired such financial or other interest as is likely to affect \r\nprejudicially his functions; or \r\n \r\n(e) has so abused his position as to render his continuance in office prejudicial \r\nto the public interest. \r\n \r\n(2) The Chairperson or any Member shall not be removed from his  office except by an \r\norder made by the Federal Government after an inquiry made by the Mayor of Islamabad in which \r\nsuch Chairperson or Judicial member or Technical or Administrative Member has been informed \r\nof the charges against him and given a reasonable opportunity of being heard in respect of those \r\ncharges. \r\n \r\n(3) The Federal Government may suspend from the office of the Chairperson or Member \r\nin respect of whom a reference of conducting an inquiry has been made to the Mayor of Islamabad \r\nunder sub-section (2),until the Federal  Government passes an order on receipt of the report of \r\ninquiry made by the Mayor of Islamabad on such reference. \r\n \r\n(4) The Federal Government may, by rules, regulate the procedure for  inquiry referred \r\nto in sub-section (2). \r\n \r\n58. Restriction on Chairperson or Members of the Appellate Tribunal on \r\nemployment.—(1) The Chairperson or Member, ceasing to hold office as such shall not:— \r\n(a) Accept any employment in, or connected with, the management or  \r\nadministration of, any person or organization which has been associated with \r\nany work under this Act, from the date on which he ceases to hold office: \r\n \r\nProvided that nothing contained in this clause shall apply to  any \r\nemployment under the Federal Government or a local authority  or in any \r\nstatutory authority or any corporation established by or  under any Federal or \r\nprovincial Act or a Government Company,  whose majority shares are held by \r\nthe Federal or provincial Government, which is not a developer as per the \r\nprovisions of this Act; \r\n \r\n(b) act, for or on behalf of any person or organization in connection  with any \r\nspecific proceeding or transaction or negotiation or a case  to which the \r\nAuthority is a party and with respect to which the  Chairperson or Judicial \r\nMember or Technical or Administrative Member had, before cessation of office, \r\nacted for or provided advice to, the Authority; \r\n \r\n(c) give advice to any person using information which was obtained in his capacity \r\nas the Chairperson or Member and being unavailable to  or not being able to be \r\nmade available to the public; \r\n \r\nPage 42 of 53 \r\n \r\n \r\n(d) enter into a contract of service with, or accept an appointment to a  board of \r\ndirectors of, or accept an offer of employment with, an entity with which he had \r\ndirect and significant official dealings during his term of office as such. \r\n \r\n(2) The Chairperson or Judicial Member or Technical or Administrative Member shall \r\nnot communicate or reveal to any person any matter which has been brought under his \r\nconsideration or known to him while acting as such. \r\n \r\n59. Transfer of Appeals. —(1) All cases regarding real estate Sector  pending in any \r\ncourt of law, shall be transferred to the Appellate Tribunal designated to hear appeals and shall be \r\nheard from the stage such appeal is transferred. \r\n \r\n(2) Any person aggrieved by any direction or decision or  order made by the Authority \r\nunder this Act may prefer an appeal before the Appellate Tribunal having jurisdiction over the \r\nmatter. \r\n \r\n(3) Where a developer files an appeal with the Appellate Tribunal against a case which \r\nhad been decided in favour of an allottee by any forum or \r\nthe Authority, it shall not be entertained, without the developer first having deposited with the \r\nAppellate Tribunal at least thirty per cent of the penalty, or  such higher percentage as may be \r\ndetermined by the Appellate Tribunal, or the  total amount to be paid to the allottee including \r\ninterest and compensation imposed on him, if any, or with both, as the case may be, before the \r\nsaid appeal is heard. \r\n \r\nExplanation.—For the purpose of this sub -section “person” shall include the association \r\nof allottees or any voluntary consumer association registered under any law for the time being in \r\nforce. \r\n \r\n60. Application for settlement of disputes and appeals to appellate  Tribunal.—(1) \r\nThe Federal Government or an authority empowered by law or  any person aggrieved by any \r\ndirection or order or decision of th e Authority or the  inquiry officer may prefer an appeal to the \r\nAppellate Tribunal. \r\n \r\n(2) Every appeal made under sub -section (1) shall be preferred within a  period of sixty \r\ndays from the date on which a copy of the direction or order or  decision made by the Authority \r\nor the inquiry officer is received by the Federal  Government or the an authority empowered by \r\nlaw or the aggrieved person and it shall be in such form and accompanied by such fee, as may be \r\nprescribed: \r\n \r\nProvided that the Appellate Tribunal may en tertain any appeal after the  expiry of sixty \r\ndays if it is satisfied that there was sufficient cause for not filling it within that period. \r\n \r\n(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may after \r\ngiving the parties an opportunity of being heard, pass such orders, including interim orders, as it \r\n \r\nPage 43 of 53 \r\n \r\nthinks fit. \r\n \r\n(4) The Appellate Tribunal shall send a copy of every order made by it to the parties and \r\nto the Authority or the inquiry officer, as the case may be. \r\n \r\n(5) The appeal preferred under sub-section (1), shall be dealt with by it as expeditiously \r\nas possible and endeavor shall be made by it to dispose of the appeal within a period of sixty days \r\nfrom the date of receipt of appeal: \r\n \r\nProvided that where any such appeal could not be disposed o f within the said period of \r\nsixty days, the Appellate Tribunal shall record its reasons in writing for not disposing of the \r\nappeal within that period. \r\n \r\n(6) The Appellate Tribunal may, for the purpose of examining the legality or propriety \r\nor correctness of any order or decision of the Authority or the inquiry officer, on its own motion \r\nor otherwise, call for the records relevant to deposing of such appeal and make such orders as it \r\nthinks fit. \r\n61. Appraisal and Inquiry Officer of the Appellate Tribunal or the Authority.—(1) \r\nFor the purpose of assessing compensation and to conduct an  inquiry and to submit \r\nrecommendations to it, the Appellate Tribunal or the Authority, as the case may be, shall appoint \r\na person on case to case basis where such person has been a Judge in any court of law in Pakistan. \r\nThe Inquiry Officer  shall give any person charged or concerned with the matter a reasonable \r\nopportunity of being heard. The Inquiry officer shall have the responsibility and  exclusive \r\njurisdiction to,— \r\n \r\n(a) to conduct an inquiry and to submit recommendations to it, the  Appellate \r\nTribunal or the Authority on any charge against any person referred to it by the \r\nAppellate Tribunal or the Authority as the case may be; \r\n \r\n(b) make an assessment on any matter of compensation or any evaluation of worth \r\nof a real estate or any claim in any matter of a  real Estate and submit \r\nrecommendations to it, the Appellate Tribunal or the Authority, as the case may \r\nbe after hearing parties; and \r\n \r\n(c) to conduct an investigation on any allegation of financial or administrative \r\nirregularities against the chairperson or any member or any officer or official of \r\nthe Authority and present his recommendations to his appointing authority the \r\nAppellate Tribunal or the Authority as the case may be; \r\n \r\n(2) The inquiry officer shall be bound by the procedure laid down by  the Code of Civil \r\nProcedure, 1908 (Act No. V of 1908) and by the rules of  evidence contained in the Qanun-e-\r\nShahadat order, 1984 (P. O. No. X of 1984). \r\n \r\n(3) The inquiry officer shall have, for the purpose of discharging his functions under this \r\nAct, the same powers as are vested in a civil court under the  Code of Civil Procedure, 1908 in \r\n \r\nPage 44 of 53 \r\n \r\nrespect of the following matters, namely:— \r\n \r\n(a) summoning and enforcing the attendance of any person and examining him on \r\noath; \r\n \r\n(b) requiring the discovery and production of documents; \r\n \r\n(c) receiving evidence on affidavits; \r\n \r\n(d) issuing commissions for the examinations of witnesses or documents; \r\n \r\n(e) reviewing its decisions; \r\n(f) dismissing an application for default or directing it ex parte; and \r\n \r\n(g) any other matter which may be prescribed. \r\n \r\n(4) The inquiry officer shall be assisted by the local law enforcement  agencies in the \r\ndischarge of his duties. \r\n \r\n(5) The application for adjudging compensation under sub-section (1), shall be dealt with \r\nby the inquiry officer as expeditiously as possible and dispose of the same within a period of sixty \r\ndays from the date of receipt of the application: \r\n \r\nProvided that where any such application could not be disposed of within  the said period \r\nof sixty days,  the inquiry off icer shall  record his reasons in  writing for not disposing of the \r\napplication within that period. \r\n \r\n(6) While holding an inquiry the inquiry officer shall have power to summon and enforce \r\nthe attendance of any person acquainted with the facts and  circumstances of the case to give \r\nevidence or to produce any document which in  the opinion of the inquiry officer, may be useful \r\nfor or relevant to the subject matter of the inquiry and if, on such inquiry, he is satisfied that the \r\nperson has failed to comply with the p rovisions of any of the sections specified in sub - section \r\n(1), he may direct to pay such compensation or interest, as the case may  be, as he thinks fit in \r\naccordance with the provisions of any of those sections. \r\n \r\n62. Factors to be taken into account by inquiry officer.—While adjudging the \r\nquantum of compensation or interest, as the case may be, under  section 61, the inquiry officer \r\nshall have due regard to the following factors, namely:— \r\n \r\n(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, \r\nmade as a result of the default; \r\n \r\n(b) the amount of loss caused as a result of the default; \r\n \r\n(c) the repetitive nature of the default; and \r\n \r\nPage 45 of 53 \r\n \r\n \r\n(d) such other factors which the inquiry officer considers necessary to the case in \r\nfurtherance of justice. \r\n \r\n63. Officers and other employees of Appellate Tribunal. —(1) The  Federal \r\nGovernment shall provide the Appellate Tribunal with such officers and  employees as it may \r\ndeem fit. \r\n(2) The officers and employees of the Appellate Tribunal shall discharge their functions \r\nunder the general superintendence of its Chairperson of the Appellate Tribunal. \r\n \r\n(3) The salary and allowances payable to, and the other terms and conditions of service \r\nof, the officers and employees of the Appellate Tribunal shall be such as may be prescribed. \r\n \r\n64. Powers of Tribunal.—(1) The Appellate Tribunal shall be bound  by the procedure \r\nlaid down by the Code of Civil Procedure, 1908. \r\n \r\n(2) The Appellate Tribunal shall also be bound by the rules of evidence contained in the \r\nQanun-e-Shahadat, 1984. \r\n \r\n(3) The Appellate Tribunal shall have, for the purpose of discharging its functions under \r\nthis Act, the same powers as are vested in a civil court under  the Code of Civil Procedure, 1908 \r\nin respect of the following matters, namely:— \r\n \r\n(a) summoning and enforcing the attendance of any person and examining him \r\non oath; \r\n(b) requiring the discovery and production of documents; \r\n(c) receiving evidence on affidavits; \r\n(d) issuing commissions for the examinations of witnesses or documents; \r\n(e) reviewing its decisions; \r\n(f) dismissing an application for default or directing it ex parte; and \r\n(g) any other matter which may be prescribed. \r\n \r\n(4) All proceedings before the Appellate Tribunal shall be deemed to be judicial \r\nproceedings within the meaning of sections 193 and 228 of the Pakistan Penal Code, 1860 (Act \r\nXLV of 1860) and the Appellate Tribunal shall  be deemed to be a court for the purposes of \r\nsections 480 and 482 of the Code of  Criminal Procedure, 1898 (Act V of 1898). No court other \r\nthan Appellate Tribunal shall have or exercise any jurisdiction with respect to any matter to which \r\nthe jurisdiction of Appellate Tribunal extends under this Act. \r\n \r\n65. Administrative Powers of the Chairman of Appellate Tribunal.—The \r\n \r\nPage 46 of 53 \r\n \r\nChairperson shall have powers of general superintendence and  direction in the conduct of the \r\naffairs of Appellate Tribunal and he shall, in  addition to presiding over the meetings of the \r\nAppellate Tribunal exercise and \r\ndischarge such administrative powers and functions of the Appellate Tribunal as may be \r\nprescribed. \r\n \r\n66. Vacancies etc. not to invalidate proceeding of Appellate Tribunal.—No act or \r\nproceeding of the Appellate Tribunal shall be invalid merely by reason of— \r\n \r\n(a) any vacancy in, or any defect in the constitution of, the Appellate Tribunal, or \r\n \r\n(b) any defect in the appointment of a person acting as a Member of the Appellate \r\nTribunal; or \r\n \r\n(c) any irregularity in the procedure of the Appellate Tribunal not affecting the merits \r\nof the case. \r\n \r\n67. Right to legal representation.—The applicant or appellant or complainant may \r\neither appear in person or authorize one or more chartered accountants or company secretaries or \r\ncost accountants or legal practitioners or  any of its officers to present his or its case before the \r\nAppellate Tribunal or the  Regulatory Authority or the inquiry officer, as the case may be. The \r\nAppellate Tribunal can summon the applicant or appellant or complainant or the person  against \r\nwhom the complaint has been directed to appear in person before the  Appellate Tribunal or the \r\nRegulatory Authority or the inquiry officer, as the case may be. \r\n \r\n68. Orders passed by the Appellate Tribunal to be executable as a  decree.—(1) \r\nEvery order made by the Appellate Tribunal under this Act shall be  executable by the Appellate \r\nTribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the \r\npowers of a civil court. \r\n \r\n(2) Notwithstanding anything contained in sub-section (1), the Appellate Tribunal may \r\ntransmit any order made by it to a civil court having local jurisdiction and such civil court shall \r\nexecute the order as if it were a decree made by the court. \r\n \r\n69. Penalty for failure to comply with orders of Appellate Tribunal by Developer.—\r\nIf any developer, who fails to comply with, or contravenes any  of the orders, decisions or \r\ndirections of the Appellate Tribunal, he shall be punishable with imprisonment for a term which \r\nmay extend up to three years or  with fine for every day during which such default continues, \r\nwhich may cumulatively extend up to ten percent of the estimated cost of the real estate  project, \r\nor with both. \r\n70. Penalty for failure to comply with orders of Appellate Tribunal  by Real Estate \r\nAgent.—If any real estate agent, who fails to comply with, or  contravenes any of the orders or \r\ndirections of the Authority, he shall be liable to a penalty for every day during which such default \r\ncontinues, which may cumulatively extend up to five per cent of the estimated cost of plot, \r\n \r\nPage 47 of 53 \r\n \r\napartment or building, as the case may be, of the real estate project, for which the sale or purchase \r\nhas been facilitated and as determined by the Authority. \r\n \r\n71. Penalty for failure to comply with orders of Appellate Tribunal  by Real Estate \r\nAgent.—If any real estate agent, who fails to comply with, or  contravenes any of the orders, \r\ndecisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a \r\nterm which may extend up to one  year or with fine for every day during which such default \r\ncontinues, which may  cumulatively extend up to ten percent of the estimated cost of plot, \r\napartment or building, as the case may be, of the real estate project, for which the sale or purchase \r\nhas been facilitated, or with both. \r\n \r\n72. Penalty for failure to comply with orders of Appellate Tribunal by allottee.—If \r\nany allottee, who fails to comply with, or contravenes any of the  orders or directions of the \r\nAppellate Tribunal, as the case may be, he shall be  punishable with imprisonment for a term \r\nwhich may extend up to one year or with fine for every day during which such default continues, \r\nwhich may cumulatively extend up to ten percent of the plot, apartment or building cost, as  the \r\ncase may be, or with both. \r\n \r\n73. Appeal to High Court.—(1) Any person aggrieved by any decision or order of the \r\nAppellate Tribunal, may, file an appeal to the Islamabad High Court, within a period of sixty days \r\nfrom the date of communication of the decision or order of the Appellate Tribunal, to him, on any \r\none or more of the  grounds specified in section 100 of the Code of Civil Procedure, 1908 (Act \r\nNo. V of 1908): \r\n \r\nProvided that the Islamabad High Court may entertain the appeal after the expiry of the \r\nsaid period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from \r\npreferring the appeal in time. \r\n _______________ \r\n \r\nCHAPTER VIII \r\n \r\nFINANCE, ACCOUNTS, AUDITS AND REPORTS \r\n \r\n74. Grants and Loans by Federal Government.—The Federal Government may, after \r\ndue appropriation made by the Parliament in this behalf,  make to the Authority any grants  and \r\nloans of such sums of money as seed money that Government may consider necessary and release \r\nit to the senior Administration Officer of the Authority to spend it on establishment of the office \r\nof the Authority with the assistance of the Ministry of Interior, Government of  Pakistan. The \r\nAuthority, in time, shall generate its own sources of funding for its function as well. \r\n \r\n75. Constitution of Fund.—(1) The Federal Government shall constitute a fund to be \r\ncalled the „Real Estate Regulatory Fund‟ and there shall be credited thereto,— \r\n \r\n(a) all Government grants received by the Authority; \r\n \r\n \r\nPage 48 of 53 \r\n \r\n(b) the fees received under this Act; and \r\n \r\n(c) the interest accrued on the amounts referred to in clauses (a) to (b). \r\n \r\n(2) The Fund shall be spent on— \r\n \r\n(a) the salaries and allowances payable to the Chairperson and other Members, the \r\ninquiry officer and the administrative expenses including the salaries and \r\nallowances payable to the officers and other employees of the Authority and the \r\nAppellate Tribunal; and \r\n \r\n(b) the other expenses of the Authority in connection with its establishment and the \r\ndischarge of its functions and for the purposes of this Act. \r\n \r\n(3) The Fund shall be administered by a committee of such Members of the Authority \r\nas may be determined by the Chairperson and before appointment of any Members of the \r\nAuthority or its Chairperson, by the Administration Officer of the Authority. \r\n \r\n(4) The committee appointed under sub-section (3) shall spend monies  out of the Fund \r\nfor carrying out the objects for which the Fund has been constituted. \r\n \r\n76. Crediting sums realized by way of penalties to the Fund. —All sums realized by \r\nway of penalties imposed by the Appellate Tribunal or the  Authority shall be credited to the  \r\nFederal treasury. \r\n \r\n77. Budget, accounts and audit. —(1) The Authority shall prepare a  budget, maintain \r\nproper accounts and other relevant records and prepare an annual statement of accounts in suc h \r\nform as may be prescribed by the Federal  Government in consultation with the Auditor General \r\nof Pakistan. \r\n \r\n(2) The accounts of the Authority shall be audited by the Auditor General of Pakistan at \r\nsuch intervals as may be specified by him and any \r\nexpenditure incurred in connection with such audit shall be payable by the Authority to the \r\nAuditor General of Pakistan. \r\n \r\n(3) The Auditor-General and any person appointed by him in connection with the audit \r\nof the accounts of the Authority under this Act shall  have the same rights and privileges and \r\nauthority in connection with such audit as the Auditor General generally has in connection with \r\nthe audit of Government accounts and, in particular shall have the right to demand and production \r\nof books, accounts, connected v ouchers and other documents and papers, and to  inspect any of \r\nthe offices of the Authority. \r\n \r\n(4) The accounts of the Authority, as certified by the Auditor-General of Pakistan or any \r\nother person appointed by him in this behalf, together with the  audit report thereon shall be \r\nforwarded annually to the Federal Government by the Authority and the Federal Government \r\n \r\nPage 49 of 53 \r\n \r\nshall cause the audit report to be laid, as soon as may be after it is received, before each House of \r\nParliament (the Federal Legislature). \r\n \r\n78. Annual report.—(1) The Authority shall prepare once in every  year, in such form \r\nand at such time as may be prescribed by the Federal Government,— \r\n \r\n(a) a description of all the activities of the Authority for the previous year; \r\n \r\n(b) the annual accounts for the previous year; and \r\n \r\n(c) the programmes of work for the coming year. \r\n \r\n(2) A copy of the report received under sub -section (1) shall be laid, as  soon as may be \r\nafter it is received, before the Parliament. \r\n \r\nCHAPTER IX \r\n \r\nMISCELLANEOUS \r\n \r\n79. Bar of jurisdiction.—No civil court shall have jurisdiction to entertain any suit or \r\nproceeding in respect of any matter which the Authority or  the inquiry officer  or the Appellate \r\nTribunal is empowered by or under this Act to determine and no injunction shall be granted by \r\nany court or other authority in respect of any action taken or to be taken in pursuance of any power \r\nconferred by or under this Act. \r\n \r\n80. Delegation.—The Authority may, by general or special order in writing, delegate to \r\nany other Authority or Department or any member of \r\nAuthority, officer of the Authority or any other person subject to such conditions,  if any, as may \r\nbe specified in the order, such of its powers and functions under  this Act, except the power to \r\nmake regulations under this Act, as it may deem necessary. \r\n \r\n81. Power to supersede Authority.—(1) If, at any time, the Federal Government is \r\nof the opinion,— \r\n \r\n(a) that, on account of circumstances beyond the control of the Authority, it is \r\nunable to discharge the functions or perform the duties imposed on it by or under \r\nthe provisions of this Act; or \r\n \r\n(b) that the Authority has persistently defaulted in complying with any  direction \r\ngiven by the Federal Government under this Act or in the  discharge of the \r\nfunctions or performance of the duties irriposed on it by or under the provisions \r\nof this Act and as a result of such default the financial position of the Authority \r\nor the administration of the Authority has suffered; or \r\n \r\n(c) that circumstances exist which render it necessary in the public interest so to do, \r\n \r\nPage 50 of 53 \r\n \r\nthe Federal Government may, by notification, supersede the Authority for such \r\nperiod, not exceeding six months, as may be specified in the notification and  \r\n \r\n(d) appoint a person and may direct him to exercise powers and discharge functions \r\nunder this Act: \r\n \r\nProvided that before issuing any such notification, the Federal Government \r\nshall give a reasonable opportunity to the Authority to  make representations \r\nagainst the proposed supersession and shall consider the representations, if any, \r\nof the Authority. \r\n \r\n(2) Upon the publication of a notification under sub-section (1) superseding the \r\nAuthority, \r\n \r\n(a) the Chairperson and other Members shall, as from the date of supersession, \r\nvacate their offices as such; \r\n \r\n(b) all the powers, functions and duties which may, by or under the  provisions of \r\nthis Act, be exercised or discharged by or on behalf of the Authority shall, until \r\nthe Authority is reconstituted under sub - section (3), be exercised and \r\ndischarged by the person or persons referred to in sub-section (1); and \r\n(c) all properties owned or controlled by the Authority shall, until the Authority is \r\nreconstituted under sub-section (3), vest in the Federal Government. \r\n(3) On or before the expiration of the period of supersession specified in the notification \r\nissued under sub-section (1), the Federal Government shall reconstitute the Authority by a fresh \r\nappointment of its Chairperson and other members and in such case any person who had vacated \r\nhis office under clause (a)  of sub-section (2) shall not be deemed to  be disqualified for  re-\r\nappointment. \r\n(4) The Federal Government shall cause a copy of the notification issued under sub -\r\nsection (1) and a full report of any action taken under this  section and the circumstances leading \r\nto such action to be laid before each House of Parliament. \r\n82. Power to issue Dire ctions to Authority and obtain reports and  returns.—(1) \r\nWithout prejudice to the foregoing provisions of this  Act, the Authority shall, in exercise of its \r\npowers and in performance of its functions  under this Act, be bound by such directions on \r\nquestions of policy, as the Federal Government may give in writing to it from time to time: \r\nProvided that the Authority shall, as far as practicable, be given an opportunity to express \r\nits views before any direction is given under this sub- section. \r\n \r\n(2) If any dispute arises between the Ministry and the Authority as to whether a question \r\nis or is not a question of policy, the decision of the Federal Government thereon shall be final. \r\n \r\n \r\nPage 51 of 53 \r\n \r\n(3) The Authority shall furnish to the Ministry such returns or other  information with \r\nrespect to its activities as the Ministry may, from time to time, require. \r\n \r\n83. Powers to make rules.—(1) The Federal Government, within a period of six months \r\nof the commencement of this Act, by notification, make  rules for carrying out the provisions of \r\nthis Act in particular, and without prejudice to the generality of the foregoing power and publish \r\nthem in the official  Gazette, such rules may provide for all or any of the following matters, \r\nnamely:— \r\n(a) standard fees to be levied on the developer, the allottees or the real estate agent \r\nfor registration and renewal of registration with the Authority under this Act; \r\n(b) the maintenance and preservation of books of account, records and  documents \r\nof the Authority; \r\n(c) the administrative powers of the Chairperson of the Autho rity and the salaries \r\nand allowances payable to, and the other terms and  conditions of the \r\nChairperson and members of the Authority; \r\n \r\n(d) the manner of inquiry by the Inquiry Officer , authority and appellate Authority; \r\n \r\n(e) the additional functions which may be performed by the Authority; \r\n \r\n(f) the manner of implementation of the order, direction or decisions of the inquiry \r\nofficer, the Authority or the Appellate Tribunal under this Act; \r\n \r\n(g) the salaries and allowances payable to, and the other terms and  conditions of \r\nservice of, the Chairperson and other Members of the  Authority and Appellate \r\nTribunal; \r\n \r\n(h) the procedure for inquiry of the charges of administrative or financial \r\nirregularities against the Chairperson or Member of the Tribunal; \r\n \r\n(i) the powers of the Chairperson of the Appellate Tribunal; \r\n \r\n(j) the form to be specified in which the Authority shall prepare a budget, maintain \r\nproper accounts and other relevant records and  prepare an annual statement of \r\naccounts under sub-section (1) of section 77; \r\n \r\n(k) the form in which and time at which the Authority shall prepare an annual report \r\nunder sub-section (1) of section 78; \r\n \r\n(l) any other matter which is to be, or may be, prescribed; and \r\n \r\n(m) any other powers of the Authority or the Appellate Tribunal. \r\n \r\n \r\nPage 52 of 53 \r\n \r\n(2) The Authority, within a period of six months of the commencement  of this Act, by \r\nnotification, make rules for carrying out the provisions of this Act  in particular, and without \r\nprejudice to the generality of the foregoing power and publish them in the official Gazette by its \r\nown authority, such rules may provide for all or any of the following matters, namely:— \r\n \r\n(a) Application form and manner of making application and fee and  information \r\nand documents with the application by the Developer to Authority for his \r\nregistration; \r\n(b) the discharge of other functions by the real estate agent under clause (e) of \r\nsection 10; \r\n \r\n(c) the rate of interest payable under any provision of this Act; \r\n \r\n(d) the administrative powers of the officers and other employees of the  Authority \r\nand the salaries and allowances payable thereto, and the  other terms and \r\nconditions of their service; \r\n \r\n(e) the administrative powers of the officers and other employees of the  Appellate \r\nTribunal and the salaries and allowances payable thereto,  and the other terms \r\nand conditions of service of, the of ficers and  employees of the Appellate  \r\nTribunal; \r\n \r\n(f) the details to be published on the website by the Authority and the developer; \r\n \r\n(g) the manner of recovery of interest, penalty and compensation from  the \r\ndeveloper; and \r\n \r\n(h) any other matter which is to be, or may be, prescribed. \r\n \r\n84. Powers to make regulations of the authority. — (1) The Authority shall, within a \r\nperiod of three months of its establishment, by notification, make  regulations, consistent with \r\nthis Act and the rules made thereunder to carry out the purposes of this Act. \r\n \r\n(2) In particular, and without prejudice to the generality of the foregoing power, such \r\nregulations may provide for all or any of the following matters, namely:— \r\n(a) the form and manner of making application and fee payable herewith under sub-\r\nsection (1) of section 4; \r\n(b) the form of application and the fees for extension of registration  under section \r\n6; \r\n(c) such other information and documents required under clause (f) of  sub-section \r\n(1) of section 11; \r\n(d) display of sanctioned plans, layout plans along with specifications, approved by \r\n \r\nPage 53 of 53 \r\n \r\nthe an authority empowered by law, for display under  clause (a) of sub-section \r\n(3) of section 11; \r\n(e) preparation and maintenance of other details under sub -section (6) of section \r\n11; \r\n(f) time, places and the procedure in regard to transaction  of business at the \r\nmeetings of the Authority under sub-section (1) of section 30; \r\n \r\n(g) the form, manner and fees for filing a complaint under sub-section \r\n(2) of section 32; and \r\n \r\n(h) any other matter which is required to be, or may be, specified by regulation or \r\nin respect of which provision is to be made by regulation. \r\n \r\n85. Members etc. to be public servants. — The Chairperson, Members  and other \r\nofficers and employees of the Authority, and the Appellate Tribunal and the inquiry officer shall \r\nbe deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code. \r\n \r\n86. Act to have overriding effect.— The provisions of this Act shall have an overriding \r\neffect, notwithstanding anything inconsistent therewith contained in any other law for the time \r\nbeing in force. \r\n \r\n87. Protection of actions taken in good faith. — No suit, prosecution  or other legal \r\nproceedings shall lie against the Federal Government or the Authority or any officer of the Federal \r\nGovernment or any member, officer or other employees of the Authority for anything which is in \r\ngood faith done or intended to be done under this Act or the rules or regulations made thereunder \r\nas determined by the Appellate Tribunal under this Act. \r\n \r\n88. Power to remove difficulties.— (1) If any difficulty arises in giving effect to the \r\nprovisions of this Act, the Federal Government may, by order, published in the official Gazette, \r\nmake such provisions not inconsistent  with the provisions of this Act as may appear to be \r\nnecessary for removing the difficulty: \r\n \r\nProvided that no order shall be made under this section after the expiry of two years \r\nfrom the date of the commencement of this Act. \r\n \r\n(2) Every order made under this section shall be laid, as soon as may be, before each \r\nHouse of the Parliament.",
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