On August 31, 2024, the Punjab Vidhan Sabha published a significant notification regarding the Punjab Apartment and Property Regulation (Amendment) Bill, 2024. This bill proposes amendments to the Punjab Apartment and Property Regulation Act, 1995, with the intention of addressing key issues related to unauthorized colonies and simplifying processes for small plot holders.
Overview of the Amendment
The Punjab Apartment and Property Regulation Act, 1995 was designed to regulate the establishment of new colonies, grant licenses, and manage construction within these areas. However, over time, some aspects of the Act have caused difficulties for property owners, particularly in unauthorized colonies. To address these issues, the Punjab Apartment and Property Regulation (Amendment) Bill, 2024 introduces several important changes:
- Easier Registration for Unauthorized Colonies
What’s New?
- A new sub-section (5) has been added to Section 20 of the Act. This change allows for the registration of property transactions in unauthorized colonies without needing a No Objection Certificate (NOC) from development authorities or local bodies.
Who Benefits?
- Property owners with plots up to 500 square yards in unauthorized colonies who have executed agreements or documents by July 31, 2024, will be able to register their property more easily.
Process Changes:
- Registrars, Sub-Registrars, or Joint Sub-Registrars must inform the concerned development authorities or local bodies about each registration.
- Even after the exemption period, subsequent sale deeds can be registered as long as the property hasn’t been subdivided.
Why the Change?
- The previous regulatory framework made it challenging for small plot holders to obtain necessary documentation for property transactions, such as sale deeds and electricity connections. The new provisions aim to reduce bureaucratic hurdles and facilitate smoother property registration processes.
- Stricter Penalties for Non-Compliance
What’s New?
- Section 36(1) of the Act is amended to impose harsher penalties for non-compliance. Failure to adhere to Section 5 will now result in imprisonment ranging from 5 to 10 years and fines between 25 lakhs to 5 crores.
Impact on Developers and Promoters:
- This amendment aims to enforce stricter adherence to legal requirements, discouraging illegal developments and ensuring that promoters and developers comply with regulatory standards.
Objective:
- By enhancing penalties, the government intends to strengthen the enforcement of property regulations, thus curbing illegal development activities and protecting the interests of lawful property owners and investors.
Statement of Objects and Reasons
The amendments are introduced in response to feedback and practical challenges experienced with the 2014 revisions to the Punjab Apartment and Property Regulation Act. The 2014 amendments, while intended to control unauthorized colonies, inadvertently imposed significant burdens on small plot holders. The 2024 amendments aim to:
- Relieve Small Plot Holders: Simplify the registration process for those with property in unauthorized colonies.
- Control Unauthorized Development: Tighten regulations to prevent the spread of unauthorized colonies.
- Enforce Compliance: Increase penalties for non-compliance to ensure that developers and promoters adhere to the law.
Implications for Property Owners and Developers
For Property Owners:
- Easier Registration: If you own property in an unauthorized colony, you can benefit from simplified registration processes, provided you complete the necessary documentation by the specified date.
- Continued Registration: Even after the exemption period, you can still register subsequent transactions as long as the property remains undivided.
For Developers and Promoters:
- Increased Accountability: The harsher penalties will require stricter adherence to the Act’s provisions, making it crucial for you to ensure compliance to avoid severe consequences.
- Regulatory Compliance: It’s important to stay updated with regulatory requirements and ensure that all developments adhere to legal standards to avoid penalties.
Conclusion
The Punjab Apartment and Property Regulation (Amendment) Bill, 2024 marks a significant shift in how property transactions are managed in Punjab. By easing registration for small plot holders in unauthorized colonies and imposing stricter penalties for non-compliance, the amendments aim to balance the needs of property owners with the need for stringent control over unauthorized developments.
