Gurgaon builders can no longer withhold registration charges

The Department of Town and Country Planning (DTCP) has come up with a new policy to curb unauthorised retention of investors’ money by builders on account of registration charges.

According to a report, under the new policy, issued in the second week of March, developers will have to execute the conveyance deed within 15 days of receiving the registration charges from homebuyers. In case that’s not possible, the money should be refunded to allottees or builders could adjust the amount against other dues except upkeep charges.

The move is aimed at checking the misuse of investors’ money by builders. At present, in many cases developers delay the execution of conveyance deed for several years even after getting registration charges from homebuyers, Official said.

“Developers will no longer be able to withhold the registration charges after its collection from allottees,” a DTCP official was quoted in media. DTCP has also made it mandatory for builders to submit a certificate from a chartered accountant vouching that they are not withholding any stamp duty charges collected from allottees.

“In case, a builder fails to submit the certificate, the department will not grant approval of building plans, renewal of licence, etc,” the official added.