Islamabad Real Estate (Regulation and Development) Act 2020

nrcsrrnrox".ffi @eGttarc wrw d DsHrtnt ...K EXTBAORDINARY PUBLISHED BY AUTHORITY 9 ISLAMABAD, MONDAY, FEBRUARY E, 2O2I PART I Acts, Ordinanccs, Presideut's Orders ard Rcgulotions NATIONAL ASSEMBLY SECRETARIAT Isktnabad, the 6th February, 2021 No. F. 23(17)/202Glegis.--Ihe followiog Acts of Mojlis-e-Shooru (Parliament) received the assent of the President on lhc 9th November, 2020 is hereby publishe&for general informahon: ACrNo. I ol'2021 AN ACT to establish the Real Estate Regtlotory Authority lor regulation and Pronotion ol the real estate seclor and lor halters connected lhere$ith WIIERI.TAS it is expedient to eslabltsh the Real Estatc Rcgulatory Aurhority for rcgulation and promotion ofthe real e$ale sector and to Protect the interest of buyers in the real estate sector by ensuring lhat the sale and ptrrchase ofplot, aparlment or building, as the case may be, or sale ofr€al estate project, to [164(2021)/Ex. Gaz.] (41) Price : Rs 80.00 42 THE GAZET'IE OF PAKISTAN, EXTRA, IEBRUARY 8, 2021 lPcRr I thc buyer by a developer or owncr holding title by himselfor rhrough a company or an agcnt is by aa efficient ard transpar€nt manner and to regulate mega projects i the real eslate sector by any developer and providc a mechanism for speedy dispute redressed by establishing an App€llare 'Iribunal to hear appeals from the decisions, directions or orders ofthe Real Estate Regulatory Authority and the recommendations of lhe inquiry officer and for matters connecied lherervifi or incidertal thercto follows: CIIAPTER I LIMINARY I Short tille, ertenl rtrd comEenc.ment{t) This Act may b€ called the Islamabad Real Ertate (Regulation and Dcvelopment) Ac! 2020. (2) It extends to the Islamabad Capital Territory. (3) It shall com€ into force at once. 2. Definitions.-{1) In this Aot, unless the context other ise r€quires,- (a) 'Authority" means lhe Islamabad RealEstare Regulatoo. Authority established under lhis Act; (b) "Appraisal or inquiry officer" means the inquiry officer apFr,inted by the Aufiority or the Appellate Tribunal under IhisAcl: (c) "Advertisement" means any documeni by the developer c,r his authorizcd agcnt described or issue.d as advenisement tlrough any medium and includes any notice, circular or other documerts or publicity in any form, informing persons about a real cstate property or real es€lc project, or offering for sale ofa plot building or apartment or inviting persons to purchase in any manner such plot, building or apartment or to makc advances or deposits for such purposcs; (d) "alloftet in relation ro a rcal estate project or a rEal estaie holding , meaDs thc p€rson to whom a plo! apartrnent or building, as thc case may be, has beefl sold (rvhether as fr€ehold or lcaseho d which is not less than thify tfuee years) by way of a sale, lransl.er or olherwise or ransferred by rhe dcveloper having sale ol' real esulte rights gi\en lo him b) rie o*ner ofthe real esraie, and includes fie person who subsequently acquires the said allotment but docs nor PART I] THE GAZETTE OF PAKTSTAN, EXTRA,, FEBRUARY8.2O2I 43 include a person to whom such ploq apartment or buildin& as the case may be- is given on rent; (e) "Agreement for sale" m€ans an agreemena entered into between the developer and the allottee to scll and to pwchase the property respective ly; (0 "apartmenf' whether called block, chamber, dwetling unir, fla! office, showroom, shop, godoli'n, premises, suit, tenemen! unit or by any other name, means a separate and self-contained part of any immovable property, including onc or more rooms or enclosed spaces, located on one ot more floors or any patt thereof, in a buildin8 or on a plor of land. used or inlended'to be used for any residential or commercial use such as residence, office, shop, sho$Toom or godown or {or carrying on any busincss, occr.rpation, profession or trade, or fo. any other type of use ancillary to the purpose specified; G) "Appellatc Tribunal" means the Real Estate App€llare Tribunal established under fiis Acr. (h) "Government" means the Federal Govemmenti (i) "architect" means a lrrson registered as an architect under the pro!isions ofthe Pakistan Council ofArchitec6 and To*,n planners Act, l9t3 (Ordinance No. IX of l9t3); O "building" includcs any structure or erection or part ofa structure or erection which is intended to be used for residential, comrnercial or for the purpose of any business, occupation, profession or trade, or for any other related purposes; (k) "carpet area" means the net usable floor area of an apartment, excluding the area covered by th€ extemal walls, areas under services shafu, exclusive balcony or verandah arm and exclusive open terrace are4 but includes the area covered by the intemal partition walls ofthe apartrnent. Lrplanatnn.-Fot the purpose of this clause, the expression "exclusive balcony or verandah area" means the are3 ofthe balcony or verandah, a-s the cane, may be, which is appurtenant to the net usable floor area of an aparinen! meant for the exclusive use of the allottee; and "exclusive open terrace area" means the area of open terace which is appurtenant to the net usable floor area of aa apanment, meant for the exclusive use ofthe allottee. 44 THI] GAZETTE OIT PAKISTAN, EXTRA,, FEBRUARY 8, 2O2I [PART I (l) "Chairperson" Eeans the ChairPerson ofthe Real Estate Rsgulatory Authority appointcd under this Act; (m) "commencement certificate" means th€ commenccment aenificate cr the building permit orthe construction p€rmit, by \'!hatcver name called issued by the an authori!-r empowcred by law or thc owncr if so pefinitted by lau' 10 allow or permit the developer to begin development works on an imrnovable properry, as per the sanctioned plan approved and issued an authorit) empcwered by law; (n) "common areas" mean (i) the ertire land for the real estate Project even wher lhe prdject is developed in phases aad registalion under this Act is sought for only a phase out of the entire land; (ri) the cases, lifu, fire escapes, and common enEances and lxits ofbuildings; (iii) the common basements, terraces, parks, play ar.as; ,lpen parking areas and common storage spaces; (iv) the premises for the lodging of persons employ€d fol the management of the prope4y including accommodation for watch and ward stalfs or for the lodging and Jffices of community service Pe$onnel; (v) Installations of central services such as elect city, gas, water and sanitation, air-conditioning; system for water conservittion and renewable energy and incin€rating; (vi) the water tar*s, sumps, motors, fans, compressors, ductl and all appaEtus connectedwith installations for common use; (vii) all community and commercial facitides as provided itt the real estate Project; and (viii) all other portion of the projcct necessary or convenient 11)r its maintenance, saftty, etc.. ard in common use; (c, "company' means a company incorporated and registered und€r the Companics Act, 2017 (xlx of 2017) to develop and construd real cstate projects; PART I] THE GAZE,I.TI OII PAKISfAN, EXTRA,, FEBRUARY8,2O2l 45 (p) "corporation" means a corporation established hy or under any FedemlAct; (q) "development authority" means anv public autlority established by the Govemment in this behalf Lrnder anv law for the time beins in force; (r) "comple(ion certificate" means the completion certificate, or such other certificate, by whatever name called, issued by the an authority empowercd by law certi8/ing that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the an authority empowered by law under the local laws; (s) "da)," means the working day, in the Federal tenitory, notified by the l'ederal Covemrnenr l'rom rime ro lime: (t) "Land owner" means any local authoriry or the Capital Development Authoriry created or established under any law fior the time being in force by the Federal Govemment holding a land Iawfnlly which can be sold to the public or a lawtul owner of the land having authority over land under irsjurisdiction to sell i! and has powers to give permrssion for development ofsuch immovable propert v to a developer; (u) "development" \r,ith its garnmatical variations and cognate expressions! means carrying out the development of immovable property, engineering or ofier opemtions in, on, over or under the land or the making of any material change in any immovable properry or land and includes re development; (v) "development rvorks' means the extemal development works and inremal development works on immovable prop€rty: (rv) "engineer" means a person who is registered as an engineer with the Pakistan Engineering Council; (x) "estimated cosr ofreal csta[e project" means the total cost involved in developing the real estate project and includes the land cost, taxes, development and other charges; (y) "external development works" includes roads alld road systems landscaping, water supply, sewerage and drainage syst€ms, clecuicity supply transformer, sub-station, solid waste management and disposal or any other work which may have to be executed in 46 tHE GAZEfiE OF PAKISIAN, EXTR{,, FEBRUARY 8, 2O:]I ART I ' the periphery of, or outside, a project for its benefir:, as nay be provrded undorthe local laws: (z) "family' includes husband, rvife, minor son and unnarrred daughter, fath€r or mother wholly dependent on a person; (za) "garage" means a place within a project having a roof and !r'alls on three sides for parking any vehicle, but does nol include an unenclosed or uncovcred parking space such as open plrkin6lareas; (zb) "immovable property" includes land. buildings, rights ol' ways, lights or any other benefit arising out ofland and thinEis attached to the earth or permanently fastened to anlthing which is attached to the earth, but not standing timber, standing crops or gzss; (zc) "interest" means the rates of interest payable by the developer or the alloftee, as the case may be. Expldnoliott.-lt ot the purpose of this clause, (i) the rate of interest chargeable from the atbttee by the developer, in case of default in the payment scheme a$eed upon in the agreement, shall be equal to the rate of ioterest which the developer shall be liable to pay the allottee, in case ofdefault; and (ii) the interest payabl€ by the developer to the allottee shall be from the date the developer did not deliver the posserrsion of the premisev real estate project as per the agreerlent hetween lhe Seller developer and buyer allottee. (zd) "intemat development works" in relation to a real estate project means roads! footpaths, water supply, sewers, drainr;, parks, tree planting, street lighting, provision for community buil,lings and for treatment and disposal of sewage and silage water, solid waste management and disposal, watcl consewation, energy manatlement! fire protection and fire safet) requirements, social nfrastructure such as educatioflal, health and othe{ public amenities or any other work in a project for its benel.lt, as per sanctioned plans; (ze) "local aulhority" means the Municipal Corporalion or Municipality or Capital Development Authority or Panchayats or an.y othr,r Local Body constituted under any Iaw for the hme being in fc,rce for providing municipal serr'ices or basic services, as the case rnay be, in respect of areas under its jurisdiction; PAR| II THE GAZETTE OF PAKISTAN, EXTRA., FEBRUARYS,2O2I 41 (20 "Member" means the member of the Real Estate Regulatory Authority appomted under this Acti (zg) () "Ministry" mears the Ministry oflnterior, Govemment ofPakislan; "notification" means a notification published in the Olhcial Gazette and the expression "noti$" shall be construed accordingly; (zi) "occupancy certificate" means the occupancy certificate, or such other certificate by whatever name called, issued by the an authority empowered by law permitting occupation ofany building constructed reasonably within the approved plan or layout as providcd under local laws, which has the civic infrastructure such as water, sanitation and electricity available; (zj) "person"includes, (i) an rndividual; (ii) an undividcd family; (iv) a firm under the Pakistani Partnership Act, 1932 (LX of 1932) or the Companies Act,2017 (XIx 012017) as lhe case may be; (iii) a company; (v) ("i) an authoriry established and empowered by law; an association of persons or a body of individuals whether incorporated or no! (vii) a co-operative society registered under any law relating to co operati\e societies; and (viii) any such other entity as the Federal Govemment may, by notification, speciry in this behalf; (zk) "planning a.rea' means a planning area or a developmelt arei or a local planning area or a rcgional development plan area, by whatcvcr name called, or any other arca specified as such by the Fedeml Govemment or any authonry having such power under the law and includes any area designated by the Federal Govemment or any authority or ar owrer ro be a planning area for future planned 48 IHE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARY 8, 2021 [P^RT I (zl) (zm) (rn) development, under th€ law relating to Town and Couitry Planning for the time being in force and as revised from tirne to rime; "prescribed" means prescribed by the Rulcs made undcr this Act; "project" m€ans the real estate project as defined under this.Act; ,.developer,' means, (i) a person who coDstructs or causes to be consructed an independent buildinB or a buildinC consirting of aparlments. or convens an existing building or a pan thereof into apartnents, for the purpose of selling all or some of the apartments to other persons himself or thrcug1 his legally nominated and declared assignees; or (ii) a person uho develops a land given to hirn by ar lanrl owner for conversion ofthe land into a real estate project, whether or not such person also constmcts sfuctures on an) oftle plots, for the purpose of selling to oth€r persons all oI some of the plors in the said project; or (iii) any developmcnt authority or any other public bcdy in respect ofallottees of (a) buildings or apa(ments, as the case may be, comitructed by such authorily or body on lands owned by them or placed at their disposal by the Govenrment for alloment or for selling out or (b) plots o\r.ned by such authority or body or placed at their disposal by the Govemm€nt for the purpose ofselling all or some of the apartrnents or plots tbr allotment or for selling out; or (iv) a co-operative housing finance societv and a primrry co operatile housing sociery which holds a land lawfully and construcLs apartments or buildings for its Membe$ or in respect of the allottees of such apartments or buil dings owned by it; or (v) any other person who acts himself as a buildor, coloniser, contractor, developer, estatc developer or by anv oth€r name or claims to be acting as the holder of a powef of .rtom€y PART I] THE GAZETTE O[ PAK]STA\, EXTRA, FEBRUARY8,2021 49 (zo) "prospcctus" means any document dcscribed or issued as a prospectus or any notice, circular, or other document offering for sale or any real estate project or inviting any person to make advances or dcposits for such puaposes; Irom the owncr ofthe land on lvhich the building or aparl'nent is constructed or plot is developed for sale; or (vi) such other person who constructs any building or apartment for sale to the gencral public. Explandlion.-Fot the purposes of this clause, where th€ person who constmcls or converts a building into aPartments or dcvelops a plot for sale and the persons who sells apartm€nts or Plots are different persons, both ofthem shall be deemed to be the devclopers and shall bejointly liable as such for the functions and responsibilities specified, under thls Act or the Rules and regulations made thereunder. 't€al estate agent" means any person, who negotiates or acts on behalf of one person in a hansaction of transfer of his plot, apartment or building. as the case may be, in a real estate project, by way ofsale, with another pcrson or transfer ofplot, apartment or building, as the case may be, of any other person to him and rec€ives remuneration or fees or any other charges for his services whether as commission or otherwise and includes a person who introduces, through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase ofplot, apartment or building, as the case may be. and includes property dealers, brokers, middlemen by whatever name called; (zp) (zq) "real estate project" means the development of a plot into a building or a buildiig consisting of apartrnents, or converting an existing building or a part thereof into apartments, or the development of land into plots tor residential houses and commercial plots for commcrcial use or apaflments in an apartment building or in a portion of a building , as the case may be, for the purpose of selling all or somc of the said aPartments or plots or building. as the case may bc, and includes the common areas. the development u'orks, all improvements and strucfures thereon, and all easement, tights and appurtenances belonging thereto; (zr) "regulations" means the regulations made by the Authority under this Act; 50 lHE GAZETTE OF PAKISTA^.. EXTRA, FEBRUARY8,2O2 [PAXT I ( zs) (.^) "rule" means the rules made under lhis Act; and "sanctioned plan'' mcans lhc sile plan, building plan, service plan, parking and circulation plarr, landscape plan, Iavout plan, ;roning plan and such other plan and includes shuctural desilirs, if applicable, pemissions srLch as environment permissic,n and such other permissions, which are approvcd by the ar au hority empowered by law prior to start of a real estate projeq shall continue at the plcasure of the Authorrty undcr this Act. (2) The words and expressions used herein but not defiled in ttis Act and defined in any law for the time being in force or in the municrpal lrlws or such other relevant laws of the Federal Covernmcnt shall havo the same meanings respectively assigned to them in those laws. CHAPTER II R.EGISTR-4.TION OF R.EAL ESTATE PROJECT AND REGIS-I-RA']]ION OPREAL ESTATE AGENTS 3. Prio. Registretion of real $tate project with f,l€al Estate Regulalory Authority.-{l) No developer shall advertise, market, t,ook, sell or offer fol sale, or invite persons to purchase in any manner any plot,2parhrent or buildinC, as the case may be, in any real estat€ project or part of it, m any planning are4 without registedng the real estate project with the Real Estate Regulan)ry Authorily established under this Act: Provided that projects that ar€ ongoing on the date ofcommoncement of this Acr and for which the completion certificate has not .been issued, the developer shall make an application with the documents required to the Aufioritv for registration ofthe said project rvithin a penod ofthree rnonths from the date o[ commencement oflhis Acl: Pro\,ided fu(her that if the Authoriry thinks necessary, in th3 interest of allottees, for pro.jecLs which are developed beyond the planning are3 but carry a pemlission of the local authority, it may. by order, dircct the develc,per cf such project lo register with the Authority so thatthe provisions ofthis Acl or the rules and regrLlations made thereundcr bccome applicable to such projects (2) Notwithshnding anlthing contained in sub-section (1). no regisfation of the real estate project shall be required with the Aulliority where the (lev€loper has reccivcd completion certificate for a real estate project prior to commercernent of this Act PART I] THE GAZETTE OF PAKISTAN. EXTRA,, FEBRUARY8,2O2I 5] 4. Application for registration of real estate project.-{.1) Every developer shall make an application to the Authority fo. registration of the real eslare project in such fo.m, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authoriry. (2) The developer shall enclose lhe following documents along with the applicatron referred to ir sub-section (l ), namely: (a) Undisputed ownership documents of the land on which the real estare projecl is being built and sold; (b) if thc develope. is other than the owner of the land, then a legal authorization for the developer to carry out the real estate project clearly specirying whether he will be developing commercial plots or buildings or resrdential plots or buildings or apartinents and the proposal as to how hc will sell these properti€s after development along $ ith a time f.ame: (c) a briet details of his entelprise including its name, registered address, rype of enterprise proprietorship, societies, partnership, companies, an authority empowered in accordance with the Capital Development Authority Iaw and regulations and the particulars of regiitration, and the nam€s and photographs oithe developer; (d) a briefdelail ofdrc projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current stalus of the vid projects, any delay in its completion, details oi cases pending. details of type of land and PaYments Pending; (e) an authenticated copy of the approvals and commencement certificate from the an authority empowered by Iaw obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed to bc d€veloped in phases, an authenticated copy of the approvals and commenccment certificate from the aa authority empowered rn accordance with the Capital Development Authority law and rcgulations for each oFsuch phases; (0 the sanctioned plan, la.'',out plan and specrfications of the proposed proiect or the phase thereoi and the whole project as sanctioned by the an authority empowered by law ; (g) the plan of development *orks to be cxecuted in the proposed irioject and lhc proposed facilities to be provided thereof including 52 I'HE GAZEI-I'E OF PAKISTAN, EXIlLq,, FEBRUARY 8, 2O2I :PARTI firefrghting faciliries, drinking water facilities. emergency cvacuation services, use ofrenewable energy; (h) the location details of the project, wLth clear demarcation of lard dedicatcd for the projecl along wilh its boundarics illcluding the latitude and longitu(le ofthe cnd points ofthe projecti (i) proforma of the allotment letter, agreement for sale, and the conveyance deed proposed to bc signed $'ith the allotteesi O &e numtcr, rype and the carpet arca of apartments for sale in the project along with thc area of rhe exclusive balcony or verandah areas and the exclusive open terrace areas apartrnent w th the apartment the number and areas of garage for sale in tlre prcject, if any; (k) the names and addresscs of his real estate agents or hirj advsrtisers snd promoters, ifany, for the proposed project; (i) the names and addresses of the contractors, architect, structural enSlneer. ifany and olher per5ons concemed wilh lhe (leveL,pmenl of the proposed project; (m) a declaration, supported by an aflidavit and documents, which shall be signed by the developer or any person autho.rzed by the developer, stating: (i) lhat he has a lcgal titlc to the Iand on which the development is proposed along with legally valid docu nents with authcntication of such title. if such land is owned by rnother person: (ii) that the land is frec from all encumbrances, or as the caie may be details of rhe encumbrances on such land including any rights. title, iotercst or name of any party in or over suc.h land along with detarls; (iii) the time pe.iod wirhin which he undertakes to compllte rhe project or phase thereof, as the case may be: (iv) that sevenr) per cent ofthc amounts realized for tte real estate project from the allottees from timc to timc and rhis shall be deposited in a separate account to be mainrained in a scheduled bank to cover thc cost of construction and tle land cost and shall be used oDly lor thar purpose: P^RT I] THE GAZETTE OF PAKISTAN, EXTRA., FEBRUARY3.2O2] 5] Provided that the developer shall withdraw the amounts from the separale account, to cover the cost of the project, in proportion to the percentage ol'cornpletion ofthe project: Provided further that the amounts from the separate account shall be withdrawn by fie developer after it is certified by an engineer, an architecl and a chartered accountant in practice thal lhe withdrawal is in proportio to the percenlage of completion of thc prolect: Provided also fiat the developer shall get his accounls audited within six months after the end of eveFr' financial year by a chafter€d accoumant in practice, and shall produce a statement of accounts duly certified and signed by such cha(ered accountant and it shall be verified during the audit that the amounts collected fbr a particular project have been utilizcd for the project and the wirhdrawal has been in compliance with rhe proportrcn to the percentage of completion of the project. (v) that he shall take all the pending approvals on time, from the authorities concemed; and (vi) that he has fumshed such other documents as may be prescribed by the rules or regulations made under this Act; and (n) such other information and docum€nts as may be required by the Authorit, from time to time. (3) The Authorit-v shall operationalize a web based online system for submitting applications for registration of projects within a period ol one year fro,n the dat€ of the Firsl meeting of the Authoriry, however hardcopy applications can also be submitted to the Authorit-v. 5. Registretiotr of the D€velop€r with th€ Authority.-{l) On receipt of the application from the developer for grant of regstration to rt. the Authority shall, within a period ofthirty days, (a) srant registration subjcct to thc pro\.isions of this Act and thc rules and regulations made thereunder. a1ld provide a registration number- including a Login Id and password to the applicant for accessing the wcbsite of thc Authorit-v and wjth directions to dre develop€r to create his ueb page and to fill therein the delails olthe proposed projcct and prominently mention the registration number 54 'THE GAZEI'IE OF PAKISTAN, EXTRA,, FEBRUARYE,2O2I IPARTI issued by the Authority in all its correspondence and edvertisements;or (b) rcject the application for reasons to be recorded in *Tiling, fsuch application does not conform to the provisions of rhiri Act or the rules or regulations made thereunderi Provided that ro application shall be rejectcd unless the appliaant has been given an oppo(unity of b"'ing heard in the matter. (2) lf the Au(horit) Iails to grant the regishation or reject the application, as the case may be, as provided under. sub-section (1), the rroject shalL be deemed to have been registered, and the Authority shall within a period of s€ven dal s of the expiry ofthe said period ofthirty days specified und,rr sub section (l), provide a registration numb;r and a Login Id and password to the devcloper for accessing the websire ofthe Autho.iry and to create his web page ard to fill therein the details ofthc proposed project. II the Authoritl/ wishes not to granl registration to the developer it can do so but only afte. iL reasonable op.rortunity of hearin g (3) The .egistration granted under this section shall be valid for a period as requested by the developer in his application for compl3tion of the project (rr phase thereoi as the casc may be. 6 Ext€nsion of registration of the Developer.-The registration granted under section 5 may be extended by the Authority on an application made bl,thc developer due to force majeure, il such form and on payrnent of such fee as may be specified by regulations made by the Authority: Provided that the Authorit] nray in reasonable circumstanoes, without default on thc part of the developer, based on the facts of cach crce, znd for reasons to be recorded in writing. extend the registration gmnted to ir project for such tinre as 1t considers necesszLr)', which shall, i! aggregate, not exceed a period oI one )ear: Provided fu(her that no application for extension ofregistmlion shall be reje.ted unless the applicant has been given an gpportLrnity oI being hea in the mattcr. Explanalion.-lcI the purpose of this section, the exprcr;sion "force majeun" shall mcan a c6se of $ar, flood, drought, fire, cyclone, earthqlake or any othcr calamity caused by nature affecting the regular development ofth€ real estate p'oject PART I] THE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARY E, 2O2I 55 7. Revocatior of rcgistration of the Develop€r. a i ) The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the an autho(ity empowered by larv , revoke the registration granted under section 5, aftcr being salisfied that (a) the developer makes default in dorng an).thing .cquired by or under this Act or the rules or the regulations made thereunde.; (b) the developer violates any of the terns or conditions of thc approval given by the an authority empowered by la\'; and (c) the developer is involved in any kind of unfair prachce or inegularitie'. Explanaliorl-Fot the purposes of thrs clause. the term "unfair practice means" a practlce which, for the purpose ofpromoting the sale or development of dny real estate project adopts any unfarr nethod or unrair or deceptive practice including any of the following practices, namely: (A) the practice olmakrng any statement, whether in writing or by visible representation which, (i) falsely represenis that the services are of a particular standard or grade; (ii) represents that the developer has approval or affiliation whrch such developer does not have, and (iii) makes a false or mrsleading representation conceminS th€ services: and (B) the dcveloper permits the publication of any advertisement or prospecfus whether in any newspaper or otherwise ofservices that are not intended to be offered: (d) the developer indulges in any fraudulent practices (2) 'lhe registration grantcd to the deleloper under scction 5 shall not be revok,ld unless the Authority has given to the de\.rloper not less than thirty days irotice, in writing, stating the grounds on which it is proposed to revoke the 1€gistration, and has considcrad any cause shown by the developer within thc period ofthat notice against th€ proposed revocation. (3) The Authoriry may, instead of r€vokiDg th€ registration Lrnder sub,-secti)n (l), per,nit it to remain in force subject to such furthcr terms and condrtiors as it thinks fit to impose in the interest ofthe allottees, and any such tenns an(lcondirions so imposctl shall be binding upon the developer. 56 .ITIE GAZETTE OF PAKISTAN- EXTRA. FEBRI]ARY 8, 2O2I [I,ART I (1) l he Aulhority, upon the revocatlon ofthe registration, (r) shall dcbar the developer lrom accessing its website in rclation to that projecl and speciry his narne in the list ofdefaulteE itnd drsplay his photograph on its website and also inform the public aboul such relocation or registation; (r) shall facilitate the remaining development works to be carried out in accordance q,ith the approved proposal; (.) shall direct all the banks holding the project bank account of the Develop€r, to immcdiatcly freeze thc account, and thereafter pror,ide an opponunrty of hearing within scven workinq days and take such further necessary actions, including conscquent dc freezing of the sald account, towards facilitatirrg the remflining development works; and (l) may, to protect lhc interest of allottees or in the public inlerest, issue such directioos as it may deem necessary, t. Obligation of Authorit-v consequ€nt upon lapse of or on rerocation of registration ofa Developer.-Upon lapse ofthe registlation or on rerrocaticn oi the registration un(ler this AcL thc Authority, maY oonsult the Fedc.al (iovemment to take such action as it may deem fit including Lhe carrying out ofthe rernaining development works by an authority empowered by liw or by the a-ssociation ofalloftees or in any other manner, as may be dehrmined by the A.uthority: t'rovrded that no direction. decision or orde. ofthe AuthoriB undor this section shall take effect until the expiry ofthe period of appeal pro\ided under thc f.o\ isronr oft|rs Act: ttovided furlher that in case of revocation of registratron of a proJect undeL'rhis AcL the association ofalloltees shall have thc first right of refusal for oarrying out ol'the remaining development works. !. Registration of real estale agents.-{l) No real estate agent shall faciiitate the sale or purchase of or act on bchalf of any person to frcilitale the sale or p,rrch.xe of any plot, apa(nrent or building. as the case may be. in a real estrite pr{ect o. paft of ir, being the parr of the real eslatc projcct rcqisrered under PART I] THE GAZETTE OF PAKISTAN, EXTRA, IEBRUARYE,2O2I 51 section 3. beilg sold by thc developer in any planning area, without obtaining registration under thrs section. (2) Every real eslatc agent shall make an application to the prescribed Authorit-v fbr registration in such form, manner, within such time and accompanied by such fce aDd documents as may be prescribed by the lslamabad Real Estate Agents and Motor Vehicle Ordinance, 1984. (3) The Authority shall, within such period, in such manner and upon satisrying rtselfofthe fullillment ofsuch conditions, as may be prescribed (a) grant a single general rcgistmtion to the real estate agent for two ' years which can be renewed after ev€ry two years; Or (b) grant a single regisEation to the resl estate agent for a particula-r projecq or (c) reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of the Act or the rules or regulations made thereunder: Provided that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter. (4) Whcreon the completion ofthe period specified und€r sub-section (3), ifthc applicant does not r€€e,ve any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have be€n registered. (i) Eyery real estate agent who ,s registered as per the provisions of thls Act or the rules and rcgulations made thereunder, shall be ganted a registration number by the Authority, which shall b€ quoted 'by the real estate agent in every sale facilitated by him under this Act. (6) Every registration shall be valid for such period as may be prescribed, and shalt be renewable for a period in such manner and on payment ofsuch fec as may be prescribed. (7) Whcre any real estate agent uho bas been granted registration under this Act commits breach of any ofthe conditions thermf or aDy other terms and conditions specified under this Act or any nrles or regulations made thereunder. or if therc is any complaint against a real estatc agent or where the Authority is satisfied that such registration has been secured by the real eslat€ aqcnt through misrepresentation or fraud, the Authority may, without prejudice to 58 'lHE CAZETTE OF PAKISTAN-. EXTRA, FEBRUARY8.202l iPARrt any other provisions under this Act. revoke the registration or suspend thc salne for suct period as itthinks fit: Provided that no such revocation or suspension shall be nrade by the Authority unless an opportunity of being heard has been given to the real estate age t. 10. Furctions of real estate rcgister,rd under section 9 shall agents--Every real estate agent (a) not facilitate the sale or purchase of any plot, apartment or building, as the case may be, in a real estate project or part of i1, beir.g sold by the devclopcr in any planning area, which is not reeist€red with the Authority; (b) maintain and preserve such books of accoun! records and documents as may bc prescr ibed: (c) not involve himself in any unfat trade practices, namel)': (i) the practicc of making any slatement, whether cralb or in writing or by visible representation which (A) falsely represcnts that the services are of a particular standard dr gradel (B) represents any approval or affiliation which the agent or the developer does not have; and (C) makes a false or mrsleading representation concemiDg the services: (ii) permitting the publication of any adv€rtisement whelher in any newspaper or otherwise of services that are not inlended to be offered. (d) facilitate the possessiol of all the information and documents, as the allottee. is cntitled to, at the time of booking of an:/ plot, apartmcnt or buiklirg, as the case may be; and (e) discharge such other functions as may be prescribed PART I] THE GAZETTE OF PAKISTAN. EXTRA.. FEBRUARY 8, 2O2I 59 CILA.PTER-III FUNCTIONS AND DUTIES OF Df,\'ELOPER ll. Futrctions and dutics oI developer.-{1) The developer shall, upon receiving his Login Id and password under clause (a) ofsub-seotion (1) or under sub-section (2) ofsection 5. as the case may be, cteate his webpagc on the website of the Authorily and enter all details ofthe proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including (a) details ofthe registration granted by the Authority; (b) quarterly up-to-date the list of number and t,?es of apertments or plots, as the case may be, booked; (c) quarterly up-to-date the list ofnumber ofgarages booked; (d) quarterly up-to date the list of aPprovals taken and the aPprovals which are pendinE sub.equenl lo commencement cenificatel (e) quarterly up{o-date statls ofthe project; and (0 such other information and documents as may be specified by the regulations made by dre Authoriry (2) The advertisement or prospectus issDed or publishcd by the devcloper shall mention prominentlv the website addr€ss of the Aulhority, uherein all details of the registcred project have been entered and include the regisEation number obtained from the Authority and such other marters incidental lherelo. (3) The developer at thc time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namelyr (a) sanctioned plans, layout plans, along with specifications, approved by the an authority empowered by law, by display at the site or such other place as may be specified by the regulations made by the Authoriry; (b) the stage u'ise lime schedule ofccmplction ofthc project, including the provisions for civic infrastructurc like water, sanitation and electricitv. 60 I'HE GAZETTT OF PAKiSTAN, EXTRA,, FEBRUARY 8, 202 PART I 14) The developer shall r:a) be responsible for all obligations, responsibilities anl functions under &e provisions of this Act or the rules and regulations made th€re under or to th€ allottees as per the agreement for sale, or to the association of alloftccs, as the case may he, till the corrveyance of all the aparhnents, plors or buildings, as the case may be, to the allottees. or the common areas to the association of allcftees or the an authority empowered by law, as the case may be: Providcd that the responsibility of the developer, \vith rrspcct to the structural defect or any other dcfcct for such period as is referred to in sub section (3) ofsection I4, shall continu,r cvell after the conveyance deed ofall the apartments, plots or buildings. as the case may be, to the allottees are executed; (b) be responsible to obtain the completion certificate or rhe occupancy certificate, or both, as applicable, from (he relevant an authority empo*,ered by law as per local laws or other ldws for thc time being in force and to make it available to the allottees individually or to the association ofallottees, as the case may bei (c) be responsible to obtain the lease ce(ificate, where the real estate project is devcloped on a leasehold land, speciling th3 period of Iease, and certilying that all dues and charges in regard to the leasehold land has been paid, aDd to make rhc lease certificar€ available to the as)ociarion olallonees; (d) be responsible for providing and maintaining thc essential services, on reasonable charges: tillthc taking over oflhe maintenance rfthe project by the association ofth€ allottees; (e) enable tie formation of an association or societ v or cl operative sociery, as the case may be, ofthe alloftees, or a federation of the same. under the laws applicable: Provided that in the absence of local ]aws, rhe association of allottees, by $hatever name called, shall be formed within a [,eriod ofthree months ofthc majo.iLv ofallottees having booked their plor or apartment or burlding- as the case may be, in the proje,rt; (f) execute a registercd ionveyance decd of the apartmedt, piot or building. as the case rnay be, rn favour ofrhe allotree along wirh the undivlded proportionate lirle in the common areas to the,1ssocration THE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARY8,2021 6I of allotlees or an authoriry empowered by law, as the case rnay be, as provided under this Act; (g) pal all outgoings untrl he transiers thc physical possession of thc real estatc project to the allottee or the associations of allottccs. as the case may be, which he has ccllected from the allottees, for the payment of outgoings (including land cost, ground rent, municipal or other local taxes. charges for water or electricit-v, maintenance charges, including mortgage loan and interest on mortgages or othcr encumbrances and such other liabilihes payable to competent authorities. banks and financial institutions. which are related 1(] the proj€ct): Provided that where any developer fails to pay all or any of(he outgoings collected by him from the allottees or any liabilitv, mortgagc loan and interest thereon belore transferring the real estate project ro such allottees. or lhe associalion ofthc allotlees. as the casc may be, the developer shall continue to be liable, even aller the transfer of the prope(y, to pay such outgoings and pcnal charges, ifany, to thc authority or person to whom they are payable and be liable for the cost ol any legal proceedings which may be taken therefore by such autho ty or peEon: and (h) after he executes an agreement for sale lor any apartnent, plot or building, as the case may be, not mortgage or create a charge on such apartmenl plot or building, as the case mav be, and il any such mortgage or charge is made or created ihen nohvithstanding anlthing contained in any other law for the time being in force, it shall not affect the right and interest ofthe allottee who has taken or agreed to take such apartment, plot or building, as the case may be. (5) The devcloper may cancel the allotrnent only in terms of the agreement for sale: Providcd that the allottee may approach the Autho.ity for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms ofthe agreement for sale. unilateral and without any sufficient cause. (6) The developer shall prepare and mamtain all such other details as may be specified as required from time to lime by Authorit)". 12. Obligalion ofd€velop€r rcgarding veracitv ofthe advertisement or prospectus.-Where any pcrson makes alr advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be. and sustains 62 THE CAZE.TTI] OF PAKISTAN, EXTRA, FEBRUARYS,2O2I JPARTI any loss o. damage by reason of any incorrcct, false statement included thcrein, he shall be compensated by thc developer in the manner as Providc,l under this Prolided that il the person afl'ected by such incorrec! false star:ement contained in the notice, advertisement or prospectus, or the model apertment, plot or building, as the case may be, intcnds to withdlaw from the propcsed project, he shall be retumed his entire investment along uith interest at such rate as may be p.escribed and the compensation in the manner provided under thi:i Act 13. No deposit or adv:rnc€ to be taken by developer without first enterilg into agreement for sale.-al ) A developer shall not accept a sum more than tefl per cent of the cost olthe apartment, plot, or building as the case may be. as an aclvance payrnent or an application fee, from a person without first entcring into a written agreement for sale with such person and regiJter dre said aereem(nt for sale, under any law for the fime being in force. (2) The agreement for salc ref-crred to in sub-section (1) shall be in such form as may be prescribed and shall specifu the paniculars ofcLevelcpment of the projert including th€ construction of building and apartments along with specific ions and intemal development work and external developlnent works, the ,lates and the manner by which pa].rnents towards the cost of tho apaltment, plot or l)uilding, as the case may be, are to bc made by the allottees rnd dle date on which the possession ofthe apartment, plot or building is to bc handed over, the rates of interest payable by the d€velop€r to the allortee and the allofte€ to the devcloper in case ofdefault, and such other partrculars, as may be prescribed. 14. Adhe.encc to sanctiotred plans end proiect sp€cificadons by the dercloper. {l) The proposed project shall be develop€d and completed by the developer in accordance E'ith the sanctioned plans, layout planr and specificrtions as approved by the authoritles approved by lhe Iederal Go!emrnenl. (2) Notwithstanding anything contained in any law, contrict or agreement, aftcr thc sanctioned pla.ns. layout plans and specificatirns and the natlre of the fixtures, fittings arnenities and commo areas: of the apaltment, plot or lruilding, as thc casc may be. as approved by the an authority emp('wered bl'law, are disclosed or fumished to the person who agree to take onc or rnore of the jaid apa(ment, plol or building, as lhe case may be, the deveioper shall not mak€ (i) any additions and ahemtions in the saflctioned plans. layour- plans and specifications and the nature of fixhrres, fittings arLd amenities describ€d therein in respect of the apartment, plot or buildrng, as PART T] THE GAZETTE OF PAK]STAN, EXTRA,. FEBRUARYt,2O2I 6J the case may be, which are agreed to be taken. without the previous consent ofthat person: Provided that the dcvclopcr may make such minor additions or alterations as may be required by the alloftee, or such minor changes or alterations as may bc nccessary due ro architecfural afld structuml reasons duly recommended and verified by an authorized Architect or Engineer after proper declaration and intimation to the allottee. Erplanaliotl-Fot the purpose of this section, "minor additions or alterations" excludes structural change including an addition to tlry area or change in height, o. the removal of part ofa buildrng, or any change to the structure, such as the construction or removal or cuttilg into of any wall or a part of a wall, partition, column, beam, joist, floor including floor or other suppo4 o. a chang€ to or closing of ar:y required means ofaccess ingress or egress or a change to the firlures or equipment. etc., and (ii) any other alterations or additions in the sanctioned plaN, layout plans and specifications of the buildings or the common areas within the project wjthout the previous written consent of at least two'thirds of the allottees, other than the developer, who have ageed to take apartments rn such building. Explandlion.-Rcf the purpose of this clause, the allottees, irrespective ofthe number of apartments or plots, as the case may be, booked by him or booked in the name of his family, or in the case ofother persons such as companies or firms or any association of individuals, etc., by whatever name called, booked in its narne or booked in the name of its associated entities or related enterprises, shallbe considered as one alloftee onlv (3) In case any structural defect or any other defect in workmanship. quality or provision of services or an)/ other obligations of the developer as per the agreement for sale relating to such development is brought to the notice of the developer rvithin a period of five years by the allottee from the date of hading ovei possession, it shall be the duty of the developer to rectiry such defects without further charge, within thirt-v days. and in the event ofdeveloper's failure to rectify such defects within such time, the aggrieved alloftees shall be entitled to rcceive appropriale compensation in thc manner as provided under this Act. 15. Obligation of dev€loper in css€ of fransfer of a r€al €stat€ projcct to r third party.--{l) The developer shall not transfer or assign his majority rights and liabilities in respecl of a rcal cstate project to a fiid party 6.1 IHE GAZETIE Ot' PAKISTAN, LXTRA-. FEBRUARY 8. l0:ll [PARr I \\'ilirour ob-aining prior $ritten consent from two-third allottees. exc:pt the de!eloper, and \rilhout the prior $rittcn approval ofthc Authority: Provided that such transfer or assrgnment shall not afl-cct the allotrnent or sale of the apaftnrents, plots or buildings as the case may be, ifl the real estate proiect made by the erstwhile de\'eloper. Explunalion.-Fot the purposc ol this sub-secrioo, rhe allottee, irrespective ofthe number ofapartnents or plots. as the case rnsy b,r, booked by him or boolied in the name of his family. or in the case of other persons ruch as comparries or firms or any associatior of rndividuals, by whatever name called, booked in its name or booked in the name of its associated entitirs or related entorpr ses, shall be considered as one allottee only. (2) On thc transffi or assignment being permitted by the allottces and the AulhonLv under sub-sechon (1), the iDtending developer shall b,: required to indopendently comply with all the pending obligations under thc provisions of ttLrs Act or the rules and regulations made thercunder, and the F,ending obligations as per the agreement for sale entered into by the erstwhile de'reloper *ith tho alhttees: Provided that any trarsfer or assignment p€rmifted under provisions of this section shall not result in extcnsion of time to the intending levelrper to complere the real estate project and he shall be required to comply with all the pending obligations of the erstwhile developer, and in case of defaul! such intending developer shall be liable to the consequences ofbreach or delay, as the casc may he, as provided under this Act or the rules and regulation:; made thereunder. 16. Obligation of develop€r regarding insumnce of real estate projecl.-{ l) The developer shall obtain all such insumnces as mal/ be notified by lhe ,,\uthrrily, including but not limitcd to insumnc€ in rcspcd of (i) trtle ofthc land and building as a part ofthe real estate project; and (ii) construction ofthe real estate project (2) The developer shall be liable to pay the premium an,l cha.ges in r.spect ofthe insurance specified in sutFsection ( l) and shall pay the same be{ore transferring the insurance to the association ofthe allottees. (3) The insurance as specified under sub section (l) shall stand transfer.€d lo the benefit ofthc allottec or the association of allottees. as the case ma)r be, at the timc of devekrper entering into an agreement for sale [ith the alloftee P^RT IT T}IE GAZETTE (4) On formation of the association of the allottees, all documents rclating to the insurance specifi€d under sub-section (l) shall be handed over to the association of the allottees. 17. Transfer of titles. {l) The developer shall execute a registered conveyance deed in favour ofthe allottee along with the undivided proportionate title in the common areas to the association of the allottees or the an authoriry empowered by law, as the case may be, and hand over the physical possession of the plot, apiutmeflt of building, as the case may be, to the aliottees and the common areas to the association of the allotte€s or the an authority empowered by law, as the case may be, in a real estate project, and the other title documents pertaining thereto within spccified period as per sanctioned plans as provided under the local laws: Provided that in the absence ofany local law, conveyance de€d in favour ofthe allottee or the association ofthe allottees orthe an authority empowered by law, as the case may be, under this section shall be carried out by the develope. within tkee months from date ofissue ofoccupancy ceftificate. (2) After obtaining the occupancy certificate and handing over physical possession ro the allottees in terms ofsub-sectron (l ), it shall be the responsibiliry of the developer to handover the necessary documents and plans, including common areas, to the association of the allottees or the an authority empow€red by law, as the case may be, as per thc local laws: Provided that, in the ebsence of any local law, the developer shall handover the necessary documents and plans, including common areas, to the association ofthe allotte€s or the competent authority, as the case may be, within thirty days after obtaining the occupancy certificate. lE. Return of the amount and compensation.-11) lf the developer fails to complete or is unable to give possession of an aparfnent, plot or building, (a) in accordance with the terms oF the agreement for sale or, as the case may be, duly completed by the date sp€cified therein; or (b) due to discontinuance of his business as a developer on account of suspension or revocation of the registration under rhis Act or for anv other rcason, he shall be liable on demand to the allottees, in case the alloftee wishcs to withdraw from the project, without prcjudicc to any other remedy available, to r€tum th€ amount received by him in respect of thal apartmcnt, plor, building, as the case may be, with interest at such rate as may be prescribed in this behalfincluding compensation in Ge manner as provided under this 66 THE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARY 8, 2O2I PARII Provided that wherc an allottec docs not intend'o wi:hdraw from the project. hc shall be paid, by the develop€r, inter3st for every month of delay, till the handing over of the pc'ssesslon, at such rate as may be mutually agreed in wriling t,erwe,Jn the Developer and the allottcc otherwise the case shall be decirled by the Authoritv. (2) The developer shall compensate the allottees in case of arry loss caused :o him due to defective trtle of the land, on which the project is being develop:d oc has been developed. in the manner as provided under this ArL and the claim fbr compensation under this sub-section shall rot b€ baned by linritation provided under any law for the time being in force. (3) Ifthe developer fails to discharge any other obligations imposed on him uncer tfiis Act or the niles or regulations made thereunder or in accoadance wrtfi the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottecs or face penalties imposed upon him by the Authoriry afi€r giving him an opportunity ofhearing. CHAPTER IV RIGITTS AND DUTIES OF AILOTTEES 19 Rights and duties of alloftees.-{1) The allottee shalL be €ntitled to olrtain the information relating to sanctioned plans, layout plans abng \!ith the specificifions, approved by the an authority empowered by law and such other informarion as provided in thls Act or the rules and regulations madij thenrunder or the alfeement for sale signed with the developer. (2) The allottee shall bc entitled to know stage-wise time schedule of completion of the project, including the proyisions for water, sanitation, electricity arld other amenities and services as agreed to between the de\eloper and the allo{tee in accordancc with the terms and conditions ofthe aEireem3nt for sale (3) The alloftee shall be entitled to claim thc possession oF apartnenl plot or buil<iing, as rhe case may be, and the association of allottees shall be entitled to claim the possession olthe common areas, as per the declaration given b) the developer und€r rhis Acl. (4) The alloftee shall be enlitled to claim rhe rcfund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Acr, from the developer, if the devek)per Iails to comply or is unable to give possession of ths apartment, plot or buildtng, as the . case may bc, in accordance with rhe tcrms of agrecment for sale or dr.re ro PAxl II THE GAZETTE OF PAKISTAN, EXTRA , FEBRUARY 8, 2O2I 67 discontinuance of his business as a developer on account of suspension or revocation of his rcgistration undcr the provisions of this Act or the rules or regulations made thereunder. (5) Thc allottee shall be entitled to have the neccssary documents and plans, includingthat ofcommon areas, after handing over the physical possession ofthe apartment or plot or burlding as the case may be, by the developer. (6) Every allottee. who has enrered into an agreement for sale to take an apartment, plot or building as the case may be, under this Act, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement lor sale and shall pay at the proper time and place. the share ofthc registration charges, municipal ta-xes, water and electricity charges. maintenance charges, ground rent, and other charges, ifany. (7) The allottee shall be liable to pay interest, at such rate as may be prescribed, Ior any delay in payment towards any amount or charges to b€ pald und€r as undertaken undcr this Act. (E) The obligations ofthe allotlee as undertaken under this Act and the Iiability to*a.ds interest under as undertaken under this Act may be rcduced when mutually agreed to between the developer and such allottee. (9) Every allottee ofthe apartnent, plot or building as the case may be, shall panicipale lo$ards the formal ion oTan association or sociery or cooperatire socrety ofthe allonccs. or a fcdemtion ofthe saJne. (10) Every allottee shall take physical possession ofthe apartnent, plot or building as the case may be, within a period oftwo months of the occuFancy certificale issued for the said apartment, plot or building, as the case may be (ll) Every allottee shall participate towards registration of the conveyance deed of the apa(ment, plot or building as the case may be, as provided under this Act. CHAPTER V THf, RI]AL ISTATE R,EGULATORY AUTHORITY 20. Es(ablishment and incorporation oI Real Estate Regulstory Authority.-{l) The Federal Governm€nt shall, within a pcriod ofone year from thc datc of coming into forcc of this Act, by notification, establish an Audrority to be known as the Real Estate Regulatory Authoriry to exercise the powers confered on it and to perform the functions assigned to it under this Act: 68 TIIE CAZETTE OF PAKSTAN, EXTRA,, FEBRUARY 8. 2O2I U'AXTI t'rovided that until the establishment ofthe Authority Lrnder this section, the I\{inistry shall, by order in the transitory pcriod, designate any othe. Autrority to l'unction as thc Authorily fbr the purposes under this Actl t'rovided also that aftar the establishment ofthe Regulatory Authority, all applications, complaints or cases pending rvith lhe Rcgulatory Auttority designated, shall stand ransferred to the Regulatory Authorily so estarlished and shall be heard from the stage such applications, complaints or cases are (2) The Authority shall be a body corporate by the nam,i afor-esaid having perpetual succession and a common seal, with the power, sulject to the provisions of this Act, to hold and dispose of property, both movable and immovabll, and to contrac! and shall, by the said name, su€ or be sued. (3) On coming into force of this Act, the Minisf,v shall appoint a person, after due p.ocess of advertisement, as a senior administrativo offi,rer of tie Authorit, who shall do all the file work for establishmenl of thc Autlority and he shall have the responsibilily to lake any or all steps to B€t r:leastd the seed morey lrom the Govemment and shall have the authority to spend fmm the seed money and shall get allocated suitable premises for rhe oflice of the Authorit/ and for this purpose he shall have the authority to use the powers of the authorit and the Ministry of Interior Govemment of Pakistan shall exteild all possible help to him as and when required by him. The senior adrninistmtive officer shall conthue to be an employee of the Authority aft€r the Cheirperson of the Authority assumes charge. :11. Composition ofthe Authority.--{1) Ihe Authority shall consist of following six Members which shall be notified by the Ministry in the omcial Gazette, namely: (a) one member to be nominated by the Chairperson of dle Pa{istan Engineering Council from amongst the members of the Padstan Engineering Council; (b) one member to be nominatcd by the Chairperson of dre Pddstrn Council of Architects and Town Planners from amongst the members ofthe Pakistan Council ofArchitects and TowrL Planners; (c) one member to be nominatcd by the Speaker of the National Assembly from amongst the members ofthe National Assemb y; (d) one member to be nominated by the Chairman Scnate ftom amongst the member! ofthe senate: PART I] TT]IJ GAZLTTE OIT PAKISTAN, EXI'RA , FEBRUARY 8, 2O2I 69 (e) two members to be selected by a Selection Committee consisting of the Mayor of lsla-rnabad and Chairman, CDA and Joint S€crerary Administration of Ministry of Illterior. Thc selection of memben of the Authority shall be made from amongst the applicants having post graduatc qualificalion in any field and who are residents of isla-aU^a tor at lcast forty ycars and have at least twenty-five l ears cr.pericnce ofGovemmcnl \ervice' (2) All the persons shall be nominated snd sclc'cted &s members of the Authorit) by the concemed a-nd shall be norified b) the Ministry whhin sixq day: ofcoming into force ofthis Act \ i$oul fail' (3) As soofl as the members have been notilied, the Ministry shau call the first meeting where the members ofthe Authorily shall elect a Chairperson of the authority fr-om amongst themselves for a term of five years or till expiry of his term as a member ofthe authority whichcver is longer: Provided the members are unable to elect a Chairman of the authority' thcn the Minislry of Interior shall nominate one member ofrhe Authority as the Chairman of th;Authorily {or a tcrm o[ five years or till expiry of his term as a member ofthe Authorit-v whichcver is longer' (4) The Quorum of tie First meeting and subsequ€nt mectings shall bc four members c'fthe AuthoriD present and votinS. (5) 'l he Charrperson of the Authoriry shall be notified by lhe Ministry in the oiicral Ga*tte fot a tcrm of five years or till exliry of his term as a member of the authority whichever is longer' (6) The Chairpcrson and thc members shall dedicaE maximum time to the work;fthe Authority and preferably work on fulltime basis' (7) Ifthere falls a vacancy ofa memb€r, such vacancy shall b€ filled by th€ rclevant Authorities wirhin rhirty days without fail' (8) The Authorily car ocopl any number of technical experts of a field in n .""ting of thc euth;rity as it may dcem fit and pay them a leasonable honoranum for their services. 22. Age limit of the ChairPeBon rtrd Members of the Arthoriqv on anooinlmcnt and aqe of sup(rannualiou.-The ChairPerson and olher Jmhrs orthe Autho;ilv shatl b€bclowtheagcof six$ fivc ye{rs on $e dalt li"ooolror.nr -a st"llleale to be [he Chairperson a'd other Mcmbers ofthe Autirority upon attaining the age ofsixty five years 'IO -IIIE <J/\ZETTF, OF PAKISTAN. EXTRA , FEBRUARYS.2O2I U'AXT I (2) Beforc appointing any person as a Chairperson or Membcr, the Minisf,v shall satisf), itscllthat the p€rson does not have any such t,inancial or other inlL.rest as is likely to affect prejudicially his functions ai such Member. :14. Selary strd rllowances payable to Chairpcrsotr rod Me|DbeIs of thc Authority.-The salary and allowances payoble to, ard the otter temrs and cond itions ol' se icc of, the Chairperson and other Members shal l be such as prescibed by the Federal Govemhent and shall not bc varied to their disadvantage during their tenure. :15. R6ignrtioMnd removal of the ChrirpeEon rtrd MeEb.r3 of Authority-{l) Not\ /ithstand ing anything contained in sub-sections 0) of section 23, d1e Chairperson or a Memb€r, a5 the case may be, rnay, (a) rclinquish his office by giving in u,riring, ro the Federal Govemment, notice ofnot less than three months; or (b) be removed from his oftice in accordance with the provisions of section 27 of this Act 12) Any vacancy caused to the office ol the Chairpcrson cr ary other Mcmber shall be filled-up *irhrn a period of thrce months from fte iate on which such lacancy occurs, 26. Administrative powers of tte Cheirpercotr.-The (lhaiqrerson shall b€ the Chref Executive and the principal Accounting Offic€r i)f thc authonq, and shall have powe6 of gencral superintendenc€ and dire(tions in the conduct ofthe allairs ofAuthontv and he shall, in addition !o presidjng orer the meetings of the Authority, exercise and discharge such adminjstra.:iv; towers and firnctions ofthe Authoriry as may be prescribed. itl. Terms of omce of Chairperson ond Memb€rs or' thc Authoriry.-{l) The Chairperson and Members shall hold office tbr a tern not exceeding fi\e years from the date on which they enter upon thcir offce, or until they attain thc age of sixty five years, lvhichever is carlier and shall not be eligible for re-appoinfnent. 27. ReEol,Al of Chairperson and MembeE from omc. itr certaiD circumstances.-{l) The Federal Govcmment mav. in accordanc€ wirh the pn)cedurc notified. remove liorn office the Chairperson or othcr Verrbers iftle Chairperson or sr.rch other Member, as the case ln;y be, la) has b€cn adjudged as an insolvent;or rb) has been convicted ofan offence, involving moral turpitude; (,r FEBRUARY t, 2O2I 'IIP,iRT T}IE CAZEITE OF PAKISTAN, EXTRA., (c) has become Physicdlly or mentally Member; or incapable of acting as a (d) has acquirct such Flnancial or other intelesl as is likely to aff€ct prejudicialll his funPtionsl or (c) any comPlaint of administrative or financial irreFlarity and illegality-by misuse of his authority as the Chairmar of lhe aulhority (2) The Chairperson ofthe Authority shall bc removed ftom office as dember ard as ChairPerson by the Federal Covemment only once charges ae.ain$ him are adiudged by the appellate tribunal after inquiry' An inquiry sbout aly allegatioo administrali;e or financial inegularity and illetaliry by misuse of friJ "ut"oriry as the Chairperson o[ the authonty or any othel charge in suL secrion (!) above shall be ione by an inquiry officer appointed by^lhe appellate tribunal.'ihe Ctrairperson olthe Authority so under trial shall bc ioformed ofthe charges against him and given a reasonable oPPortunity of being heerd.in resPect of th"ose ciarges and ont then the appeuate tribunal shall Pass a declsion on the charges ,rhetier the coniinuance in ofEc.e ofthe chairperson is prejudicial to the public interest or othenvise (3) A member of the Aurhority shall be rcmovcd ftom oIlicc Es member'by the Federal Covemment only once charges aSainst him are adiudg€d i" th" "ooeltar. tribunal after inquiry. An inquiry aboul any allegation ,i-lnlsrraiire o. tlnancial iregularil) aod tllegality by misuse ofhis authorit) as the member of the aurlority oiany other charge in sub-s'ction (1) above shall be done by an inquiry oficer appointed by thc appellate trihunal Thememberoflhe aurt'oriw so undir trial shaifbe informed of the charges against him and given a reasonable opportunlty of being heatd in respe€t of those charges and only then the appellati lribunal shall pass a decision on the charges whether the continuance in ofFrce of the chairperson is prcjudicial (o the public inter€st or otherwise. 2t. Restrictiotr.or Chairperson or MembeE otr 'EployEent rfter cessatior of o(ficc.-{ I ) The Chairp€rson or a Member, ceasing to hold ofiice as such, shall not (a) accept any emPlo)mcnt in, or connected with, the management or' administration of, any pe.son or organization which has t'een associated with any work under this Ac! from the date on which he ccases to hold office: Provided that nothing contained in tltis section shall aPPly to any emplo)T nent under theFedeml Covemment fi a local authoriry 't2 'fHE GAZETTE OF PAKISTAN, EXTRA.. FEBRUARY 8, 202 PART T or in any slatutory authorirr or any corpomtion established by or under aDy Federal Act or a Government Company, whose majority shares are held bv the Federal or Provtncial Coverrunent, which is not a developcr €s p€r rhe provisions ofthis Act: r b) act, for or on behalf of any person or organizarion in conrection with any sp€aific proceeding or iransaction or negotiati,r or a cas€ to which the Authority is a party and wirh resp€ct to which the Chairperson or such Member had, before cessation ofoffjce. acted for or provided advice to, rhe Authority; (c) give advice to any person using information which was obrajned in his capacity as the Chairpcrson or a Memb€r aod being unavailable to ornot being able lo be made avsilable to $e public; and (d) enter into a contsact ofservrce wirh, or accept an appointmenr to a boad of dir€ctors ol or accep! an offer of employmont with, an entity with which he had direct aad significant ollicial dcalings during his term ofoffice as such. (2) The Chairpersol and M€mbc.s shall not coDmunicate or rcve{l to any person any matter which has bcen brought under his consideralion or known to him while acting as such. 29. Omcers aDd other eEployees of Arrhority.- {I) The Authority shall appoint such officers and employees, on rcgular basis or cortrzct baris and appoint inquiry officer or consullants on case to case basir on remunerations decided by the Au$ority as it considers necessary for fie efEcien(,lischiuge of fiinctions ofthe Authority and such employees would dischsrgc their functions undcr lhe general superintendence ofthe Chairperson. (2) The salary and allowsnces payable to, and fte olher rerms and conditions of Scrvice of, the officers and of the employees of the Authority shall be lhal as dLrcidcd by the Autrority al rhe time ofappoinEncnr of the emliloyee. The Authority shall make rules goveming the service of tfie r€gulaa emplo:),e€s of the Authority and the Ilederal Govemment shall publish these rules in the ,tffrcial Gazette as sEtutory rulcs. 30- Meetings o{ Authority.-{ I ) The Au$oriry shal rneer sr such places and times, and shall follow such rules of proc"jurc in rcgard to the transaction of ils business, as may be specified by thc regulations riade by the Authority. P^RT I] TIIE GATITTE OF PAKISTAN, I]XTRA, FEBRUARY8,2O2l '73 (2) If the ChairPe6on for any reason, is unablc to att€nd a mecting of the Authoritv. any other N{ember chosen by the Members prcsent amongst lhemseh'es r the meetinS. shall Preside at lhe meet,nB . (l) All questions which come up before any meeting of the Au6ont) shall be deoided by a majority ofvotes by rhe Members present and voting. and in the event ofan equali!' of votes, the Chairperson or in his abscnce, thc percon prcsiding shallhave a second or castingvote. (4) Ihe qu€stions uhich come up beforc the Authority shall be dealt with as exp€dltiously as possible and thc Authority shall dispose of thc same within a peirod of sixty days from the date ofrecciPt ofthc aPplication: Provided (hat where any such application couid not be disposed of within the said period of sil.1-v days, the Authority shall record its reasons in writing for not disposing ofthe application within that Period. 31. vacancies crc. not lo iovalidste proceeding of Authority'-No act or procccding o[the Aulhority shall be invalid merely by reason of (a) any vacancy in. or any defect in the constitution of, the Aurhority; or (b) any defoct in thc appointmenl of a person acting as a Member of the Aulhority; or (c) any irregularity in the procedure of th€ Authority not affecting the merits of the case 32. Filing of complaitrts with the Aurhority'-{1) Anv aggrieved person may file a complaint with thc Authoriq, for any violation or "ontr"u.nrion of the provi;lons of this Act or the rules and reSulations made thlreunder against any other Authority, Department, developer, allotte€ or real esulc agenl, as the case may be. Erplatration.-For lhe purpos€ o[ $is sub-scclion "Per"on .shall includc rhe association of allottccs or any voluntary consumer Lssoclatlon reglstered under any law for the time beinS in forc (2) The form, marmer and fees for filing complaint under sub section (l ) shall bc such as may bc specificd by regulations. 33. Functions of Authority for Promotion of r€al cstate sector' The Authorit-v shall in order to facilirate the gowth and promotion of a healthy' transparent, c-mcienl and competitive real estate sector make recommendations to 71 THE GAZETTE OF PAK]STAN. EXTR-A,, FEBRUARY8,2O2I JPART I the Fedcral (iovernment ofthe an authority enp6wered by lal! , as the calc may (a) protection of interest of the alloflees, developcr and real estate agent, (b) creation ofa single window system for ensuring time bound project approvals and clearances for timely completion ofthe pro.iect (c) creation of a transparent and robust grievance r€dressal mechanism agalnst acts of commission and commissron of corpetent authorities a.nd their officials; (d) measures to encourage investment in the real estale sectl. including measures to increase financial assistance to affordable h:using segment; (e) m€asures to encourage construction of environmentally sust6 inable and affordable housing, promoring standardization nnd use of appropriate construction materials, fifiwes. fnlings and construction techniques; (0 measures to encourage grading ofprcijects on various parameters of development including grading of developers; (g) measures to facilitate amicable conciliation ofdisputes betwien the developers and the allottees tkough drspute settlenLent lbrums set up by the consumer or dcveloper associationsi (h) melsures ro facilitate digitization of land records md liystem towards conclusive properw titlcs with title guarantee; (i) to render advice to the Federal Govemment in mafteri rela ing to the development ofreal estate sector; and (j) any other issue that the Authority may think necessary Ibr the promotron of the real estate sector. 34. Advocacy and awareness measures.-11) The Iederal Govemment may, while formulalng a policy ou real estate scctor (including revicw oflaws rclated to rcal estate sector) or any other matter, make a ref3rence to the Authonty for its opinro[ on possiblc effect, of such policy or law (,n real eslale srctor and on the receipt oI such a reference, the Authority shall within a period cf sixty days of makirg such reference, give its opinion to the federal Govemrnent which may rhereafter take further action as it decms fit. PART I THE GAZETTE OF PAKISTAN, EXTRA., IEBRUARY8,202] 15 (2) The opinion given by the Authority under sub-section (1) shall nor be binding upon the Federal Govemment in formulating such policy or laws. (3) The Authoriry shall take suitabie measures for $e promotion of advocacy. creating awareness and imparting training about laws relating to real estate sector and policies. 35. Functions of Authorit).-The functions of rhe Authority shall include (a) to register and regulate real estate projebts and real estate agents registered under this Act; (b) to publish and mainiain a website ofrecords, for public viewinS, of all real estate projects for which registration has been given, with such details as may be presoribed, including information provided in the applicarion for which registration has been granted; (c) to maintain a database, on its website, for public viewing, and enter the names and photographs of developers as defauloers including the project details, registation for which has been revoked or have been penalized under this Acl, with reasons therefor, for access to the general public; (d) to maintain a database, on its \\€bsile, for public viewing, and enter the names and phorographs of real estate agents who have applied and registered under this Act, with such details as may be prescribed, including those whose registration has been rejected or (e.) to flx through rcgulations lor each areas under its jurisdiction th€ standard fees to be levied on rhe allottees or the developer o. the real estate agent, as the case may be; (0 to ensure compliance of the obligations cast upon the developers, the allottees and the real estate agents under this Act and the rules and regulations made thereunder; (g) to ensure compliance ofits regulations or ordcrs or drrectrons made in exsrcisc of i1s powers underthis Act; and (h) to perform such other funclions as may be entrusted to the Authority by the Federal Government as may be necessary to carry out the provisions ofthis Ac1. '76 T t GAZET'IE OF PAKISIAN, EXTRA., FEBRUARY 8, 2021 [fARrI 16. Power of Authority to dclcgatc ary oI its functions lo another Authority or Dcpartment.-Thc Author;ty. may temporarily dclegalc any ofits function ro another aurhorilv or Departnrent on its own o. upon an apl)lication to the AuthoriB by another authorio or Department. 37- Powe6 of Authority to call for informatior, an(l conduct inquiry ard make ass€ssmcnts.-a I ) Whcre the Authorit-v c(nsiders it expedienr to do so, on a complaint or ru, ,rolr?. relaling lo this Act or lhe ru cs or regulxtioDs made there under, it nray, by order in u,riting and lecolding reiEons therclbr oall upon any developer or allottee or real estate agent, as rhe case may be, at anl/ time to fumish in writing such information or explanation relating to its aflairs as the Authority may rcquirc and appoint one or more pcrsorrs to rnakc an inquirv in relation to the affats ofary developer or allottee or the real ristate aBent. as lhe Lase may be, (:l) \ohvithstandlng anlthrng contained in any other law f(,r the time being in force. while exercising the powers under sub-section ( l). rhe Auttoritv shall havo the same powers as are vesled in a civil coun under the Co,le of Civrl Proccdurc, 1908 while trying a suit- in .respect of the follou,,ng mafters, namely: (i) the discovery and production of books of account and rther documents, at such place and at such time as may be sl,ecifiEd by ihe Authority; (ii) summoning and enforcing thc attendance ofpersons and examining them on oath: (iii) issuing commissions for rhe examination of witresses or documents: and (i\ ) any other matter which may be prescribed J3. Powers of Authoritv.-11) fhe Authority shall have powers to irnpose penahy or interest, in rcgard to any contravention of obligations cast upon the ,levelopers. the allottees and the real estate agents, under this Act cr the rules and the rcgulations nade thereunder (:l) The Authority shall be guided by the principles of natural justice and, subJect t(, the othcl provisions of this Act and the rules nude thereunder. the Authoriry shall have powers to rcgulate its own procedurc. (:) Where an issue rs raised relating ro agreement, action, omisjion, practice or procedurc that PAR1 ll THE GAZET'I E OF PAKISTAN. EXTRA,, FEBRIJARY8,2(]2l 77 (a) has an appreciable prevention, restriction or distortion of competition in connection sith thc develoPment o[ a real estate project;or (b) has effect of market power of monopoly situation being abused for affecting intcrcst of allonees adversely, thcn thc Authoritv, may take suo htottt, make reference in respect of such issue to the Competition Commission of Pakistan or the appellate tribunal under this Act . (4) All proce€dings before the Authority shall be dccmed to bejudicial procecdings within the meaning of Section 193 and 228 of the Pakistau Penal Code, 1E60 (Act XLV of 1860) and the Authority shall be deemed to be a court for the purposes ofsection 480 and 482 ofthe Codc ofCriminal P.ocedure, I89t (Act V of 1E98 ). No court other than Authority shall have or exercise any Jurisdiction rvith respect to any matter to whrch the jurisdiction of Authority e\tends under this Act. (5) A person against $hom a complaint has be€n rnade or any contravention of this Act has comc to the knowledge oi lhe Authority by arry means shall be prooeeded against by the Authoriqv. A complainanr or a person against whom a complaint has been made or who has purpoftedly commtted any contmvention ofthis Act can be represented by his duly apPointed counsel or rcpresentative. lhe Authoriry can summon the applicant o! appellant or complainant or the person against whom the complaint has been directed to appear in person before the Authority. i9. Powers to issu€ irtcrim orders.-Where during an inquiry, the Authority is satisfied that an act in contravention of this Act, or the rules and regulations made thcreunder. has been commrfted and continues to be commifted or that such act is about to be commifled. the Authority may, by order, restrain an.v developer, allottee or rcal estate agent from carrying on such act until the conclusion of such inquiry or until further orders, wifiout giving notice to such parfy, where the Authority dcems it necessary. ,10. Powers of Authority to issue direclioDs.-The Authoriq may. for the purposc ofdischarging its functions undcr the provisions of this Act or rulcs or regulations made thereurder, issue such dtections from time to time, to the developers or allotlees or real estate agents, as the case may be, as it may consider necessary (2) ,4.11 directions of the Authority shall be binding on all Law enforcemenl agencies in lslamabad and fi€ District AdministEtion which shall act in assistance olthe Authorirl . 78 TIIE GAZETTE OF PAKISTAN, EXTRA, FEBRUARYS,2O2I PART I 41. Orders of recoverr* of intcrest or penalty or compensation and enforcement of Order etc.--(l) If a developer or an allottee or a rcal estatc agent, ar thc casc may be, fails to pa]'any interesr or penallv or ccrnperLsation inposed on him, by the inquiry oflicer or the Regulatory Authority cr rhe Appellar.e Authority, as the case may be, und€r diis Act or thc ruks and regulations made thereunder, it shall be recoverable from such develooer or alloltee lr real est2te agent, in such manner as rnav be prescribcd as en ar:n:ars of 12) If any inquiry olficer or the Regulatory Aurhority or the Appellate Tribunal, as e case may be, issues any order or directs anv pe.son to do a y act. or rfrain from doing any act, which it is empowered to do under ir Act or the rures or regulations made thereunder, then iD case of failure b) any perion to comply *ith such order or direction, the same shall b€ enforced, throlgh the Law enforcem€nt agencies in Islamabad and fie District Admioistration which shall acr irl as;ista,1ce of the Authority. r3) If an), inquiry office. or the Regulatory Authoriry or rhe Appellate Tribr:nal passes a penalty. .12. Rectification ard review of orders-The Authonty lnay, rlt any tinre witiin a period of two years from the date of the order made uncer this Ac! with a v ew lo rectifying any mistake apparent from the record, ameDd any order passcd ty it, and shall make such amendment, if the mistakc is brought to its notice bv the parties: Provrded that no such amcndment shall be made in .espect of an], order against \vhich an appeal has been preferred under this Act: l']rovided further that the Authority shall not, while rectiryinll any miitnke apparent from record, amend substantive part of its ordei passed under the provisions ofthis Act CTIAPTER VI OFFENCES, PENALTIES AND ADJI]DICATION 43. Punishment for non-regisrratioD by a Dcvetoper.-{l) lt any dcvcloper is working without ha,ving valid regisrration with the Author ry or whcn his registration has been revoked bv the Autho.ity. his such wcrkinp shall he c, n.i,lercrl an olfencc punishable u irh a peralq whlch mar extend uf, o rcn per cent of the estimated cost of the real estate project as determirled by the Authoritv and the.quthority may scntence such developer to six months lmpnsonmeni PART I] T'I{E GAZETTE OF PAKISTAN, EXTR,A.,, FEBRUA-E.Y 8. 202 ] 79 (:r lla v de!eloper docs not comply wilh his dulies and undenakinBt ro Ihc allonee and lhe aulhorily and doer nol compl) wilh lhe orders. dec;sions or directions issued by the Authoritv, he shall be punishable with imprisonment for a term B,hich may cxtcnd up to three -vears or with fine which may cxrend up to a fu(her teo perceDr o[ the cstimated cost of the real cstato project. or with both and shall not remain eligible for registration as a developer or work as a developer within the Jurisdiction oflslamabad Capital terrtuory. 44. Penalty for providing false information.-lf any developer proviales lalse information or con[avenes the provisions ofsection 4, he shall be liable to a penalty which may cxtend up to five perc€nt of the estimated cost of the rcal estate project, as determined by thc Authori9. 45. Punishmcd for non-registration by a Real Estate AgeDt. lf any Real Estate Agent is working without having valid registration with the Aulhority or when his registration has been revoked by the Authority, his such working shall bc considered an offence punishable with a penalty as may be determined and inposed by the Authorily and the Authority may senlence such ReaL Eslate Agent to slx months imprisonment and he shall not remain eligible for registration as a Real Estate Agent or *ork as Real Estate Agent within the Jurisdiction of Islamabad Capital Territory. 46- Penalty tor failure to coDply with orders of Authority by Developer.-lf any deleloper, who fails to comply with, or contravenes any of the orders or directions of the Authority, he shall be liable to a penalry for every day during which such default conunues, I\'hlch may cumulatively extend up to fir':e per cent, of the estimated cost ofthe real estate ploject as determined by the Authong. 47 Penalty for failure to comply with orders of Authority by allottcc.-lf ary allottee, who fails 1() comply with, or contrave[es any of the ordcrs. decisions or directions of the Authorify he shall be liable to a Penall,'* for the period during uhich such default continues, which may cumulatively extend up 6 fivc percent of the plot, apafment or building cost, as the case may be, as delermined by the Authoriry. 4E. Penalties ofviolatiotr of provisions ofthis Act by a Developer or any Officc Bearers of any other Authority or Departmeot or Company.or Developer, ctc. by Developcrs and Companies.-(1) Where any conuavention of this Act or any offence under this Act has been committed by a comPan,'", every pcrson who, at the time the oflcnce was commifted, \r!as in charge of, or $as responsible to the comPan) for the conduct ofthe business of the company, as uell as the company, shall be deemcd to be guilty of the offcnce and shall be liable to be procecded against and punished accordingly: 30 THI' CAZETTF- OE PAKISTAN. EXIRA, FEI]RUARY 8. 2O2I (b) ''d1rectoa' in relation to a firm, means a partner in the firm Provided thar Dothing contaired in this sub-section, shall render rny such oerson liable to an-,- punishmenr undcr lhis Act if he proves that th3 offence was ,rommifted without his kno\,!'ledge or drat he had exercised all du3 dilitience to Drevent the commission ofsuch offence (2) Notviithstanding anything contained in sub-section r'l), v,here an ,rllence uDder this Act has been committcd by a company and it is proved that the ,rl[cncc has been committed widr fie consent or coonivance of. or is attributablc ro any negligence on the pan of any director or employce ofthe crmpaLry, such direcbr or employee shall also be deemed 10 be guilry of that om:nce znd shall be liable to be proceeded against and punished accordingly. EVlflnalion.-F ot lhe purpose ofthis section, (a) "company' means any body corporate and mcludes a firm, or other association of individuals: and (31 Whcrc any conkavention of this Act has becn cornmifted by a Dcvel:per. a local authorily, a local Govemment or a body corprrate or instihrtion and it appears from the relevanr documents that such offence has been commfled with rhe consent or connivance ofor is attributed Io any negligcnce on :he part ol any director, partner, manager, secrctar)'or other omc('r oflhe bodv coqorate or institution such director. partner. manager, secretary or other office. ofthe body corporate or institution. shall be deemed guilty oi such contrivention r1k)ng with the body corporatc o. insutution and shall be an offence punishable by rhe Author iry b], a sentence of imprisonment for a term which may extend to one year but shall not be less than six months. or with fine \,hich may (jxten(l to Fivc Llundred Thousand Rupees: Provided that rn the case of a company as defined under the Companies Act. :017 (XIX of 2017), only its Chief Executive shall be liable under this section. Explinotion,-Ft the purposes of this section, "body coryorate or institution' includes a firn. associalion ofpersons and a society rct}stered under ih€ Scclct cs Registratron Act, 1860 (XXl of 1860) or under the Co-c,perative Sccieties /rct. 1925 (Vll of I925). (4) Where any contravenlion of this Act has be€n comrnitled by any Covernment Agency. any local authority or local Council and it appean lrom the r:elevanl documents drat such contravention has bcen commtted with the consent ,rr connivance of or is attributable ro ary negligence on the parr of the Head or .rnv oLher officc. of the Govcnlmcnl Agency. local authoriry or local :ouncil, JP^RT ] P.cxr tl THE GAZETTE OF PAKISTAN, EXTRA., FEBRUARY8,2O2I 8I such Head or other olTicer it shall be an offence punishable by the Authority by a senlenc€ of imprisonment for a term vhich may extend to one year but shall not be less tha0 six months, or with fine which may extend to Five Hundred Thousand Rupees. 49. CompoundiBg ot Offences.-Notwithslanding an)'thing contained in the Codc olCriminal Procedure, ifany Persor is punished lvith imprisonment under this Act. the punishment may, either before or after th€ institution ofthe prosecution, be compounded by the coui on such terms and conditions and on payment ofsuch sLrms as may be prescribed: Provided that the sum prescribed shall not, in any case, exceed the maximLrm amount of the fine which may be imposed fo. the offence so compounded. CHAPTER VII THE R.EAL ESTATE APPELLATE TRIBUNAL 50. Establishment of th€ Res.l Estste Appellste Triburel.-{1) Tte Federal Government shall. within a period of three months from the date of coming in{o force ofthis Act, by notification, establish aII ApP€llate Tribunalto be known as the Federal Reai Estate Appellate Tribunal. (2) lhe Federal Colemmenl may. if il deems necessary. establish one or more benches of ibe Appellate Tribunal, for various jurisdictions, as the case may be: Provided tha! untilthe establishment ofan Appellate Trrbunal underthis section, the Federal Government shall designate, by order, any Appellate Tribunal Functioning under any law for the time being in force, to b€ the Appellate Tribmal to hear appeals underthe Act 51. Composition of Appellste Tribund.-The each bench of the Appellate Tribunal shall consist of three Members. 52 Appointment ard Quatification of Chsirperson end Members of Appetlate Triburrl.-{1) A person shall not be qnalified for apPointment as the Chairperson unless he is or has been a Judge of a High Court and shall be appointed by thc Mrnistry ofLaw, Covernment ofPakistan; (2) in rhc case of other members, a person shall not be qualified for appointment if h€ has not held the post of Joint Sec.etary to the Govemment of Pakisun or an equivalent post in the Federal Govemmcnt or an equivalent post in the Provincial Govemment or a statutory autonomous body 82 TFIE GAZE'I'|E OI'PAKISIAN, EXTRA,, FEBRUARY8,2O2l [?ART I (:l) Ihe Chairperson or a Membcr ofrhe Tribunal, as thc caie may be, shall not l)e belowthe age ofsixty years. (4) 'fhe Chairperson of lhe Appellate Trjbunal shall be appointed by the Ministry cf Law, Govemment ofPakistan irl consultation with lhc Ma]or of Islamabai which shall .not be binding on the Ministry of Lau, Govcmment of Palistan rn this regard. (5) Ihe other members ofthe Appellate Tribunal shall be appointr:d by the Minjlfy of Interior, Govemmcnt of Pakistan on the recommendltion5 of a Selccrion Corlminee consisling ol the Vayor of lslamabad. thc Chairman IDA and Joint Secretary ofthe Ministry of Interior and Joint Secretary ofthe MirisEy ofLaw. ((i) 'Ite Chairperson and the members ofthe Appellate Tril)unal shall be notifi(d in the official Cazette by the Ministry of Interior, Govrmment of Pakis-an. 51. 'ferm of OIIice of Chairperson and Members.-{l) fie Chairperson of the Appellate Tribunal or a Member of the Appellatr Tril)unal shail hold ofhce, as such for a term not exceeding five yea.s ftom the da:e on which he ente6 upon his office, bul shall not be eligible for re-appointrrent: Provided that the Chairperson or member of the Tribunal, h.j shall not hold office after he has attained the age ofsixty-five years. (11) Before notilying any person as Chairyerson or Member, the Ministry )f Lrrcrior, Covemment of Pakistan shall satisfy itself that .ie person does not hale any such financial or other interest, as is lik€l), to sffcct prejudicially his functions as such membcr. 5.1. Salary rnd allowf,nces payable to Chairperson ard MembeN of the Appellate Tribulal.-The salary and allowances payable to, ancl the other terms and conditions of service of, the Chairperson and othcr Membe:s shall be such as nay be prescribed by the Federal Govemment and shall not bc vari,:d to lheir disa(lvantage during rheir lenure. 5:i. Resignation and R€moval of ChairpeEo[ snd Memben o]fthe Appellat( Tributral. NotivirhsEnding an!,rhing contained in scction :i2 an(i 53. Lhe ,.'l.ai4'er., n or a Member. as lhc ca.c ma) be. ma): (a) relinquish his olfice by giving rn wriring to rhe Federal Covertunent a notice ofnot less than tkee months: and PART I] THE GAZETTE OF PAKISTAN. EXTRA, FEBRUARY8,2O2I 83 (b) be remoled from his ofEce in accordance with the provisions of section 57. 56. Filling oI yacatrcie{.-A vacancy caused to the oIfice of the Chairperson or any other Memb€r, as the case may be, shall be filled-up by the relevant aulhorities and the process rvithin a period of one month from the date on which such vacancy occurc. 57. Remolal of Chairp€Non and MeDbers from oflice in certain circumstances.-{l) The Federal Govemment may, in consultation with the Mayor of tslamabad, remove from office of the Chairperson or any Memb€r of the Appellate Tribunal, who (a) has beon adjudged as an insolvent; or (b) has been convrcted of an offence which, in the opinion of the Fede.al Govemment involves moralturpitude; or (c) has become physically or mentally incapable; or (d) has acquired such financial oi other interest as is likely to affect prejudicially his functions; or (e) has so abused his position as to render his continuance in office prejudicial to the public interest. (2) The Chairpenon or any Member shall not be removed from his office exc€pt by an order made by the Federal Government after an inquiry made by the Mayor of Islamabad in \rhich such Chairperson or Judicial member or Technical or Adminislrative Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges. (3) The Fedelal Govemme[t may suspend from the office of the Chairperson or Member in respect ofwhom a reference ofconducting an inquiry has been made to the Mayor oflslamabad under sub-section (2),u[tilrhe Federal Govemment passes an order on receipt of the report of inquiry made by the Malor oflslamabad on such reference. (4) The Federal Covemment may, by rules, regulate the procedure for inquiry refened to in suEsection (2). 58. R€striction on CheirpeNon or MembeN of the Appellate Tribunal on employment--(I) The ChairpeBon or Member, ceasing to hold office as such shall not: 84 TflE GAZETTE OF PAKISTAN. EXTRq... FDBRUARY8,2021 fPaRr I (ir) Acccpt any employment in, or connected with, the managerlent or adn.inistration of, any person or organization *hich hai becn associated with any work under this Act, from the date on wllich fLe cea.ses to hold office: Provided that nothing contained in this clause shall apply 10 any employment under the Federal Government or a local arthority or in any statutory authorilv or any corporation established by or under any Federal or provincial Act or a Govemment Compan'r', $,hose majority shares are held by the Fcderal or prcvincirll Govemment, which is not a developer as per the provisions ofthis O) act, for or on behalf of any p€rson or organization ia connecticn with any specific proceeding or transaction or negolialion or a ca.e to which the Authoriry is a party and with respect to which *Le Charrperson or Judicial Member or Technical or Adminir;katire Mernber had, before cessation of office, acted for or govided advice to, the Authonryi (c) give advice to any person using information which was obtained in his capacity as the Chairperson or Member and being unavailable 1o or not being able to be made available to the public; (d) enter into a contract of service wittl or accept an appointmrint to a board of directors of or accept an offer of cmployment *ith, an entiry with which he had direct and significant ollcial dealin5is during his term ofoffice as such. (2) The Chai.person or Judicial Member or Technical or Adminislrative l\rember shalt nol communicat€ or reveal to any person ally malter whicl has been brought under his consideration or kllown to him while acting lls such. 59. Transfer of ,A.ppeals.-<1) All cases r:garding real estate Sechr pending in :rny court of law, shall be transfened to the Appellate Tribunil dcsignated t(, hear appeals and shall be heard fiom the stage such appeal ,s transferred, (2) An) person aggrieved by aoy dkection or decision or order made by the Authority under this Act mar'prefer an appeal before rhe Appellale Tribunal havingJurisdicrion over the mancr (3) Whcre a developer files an appeal with the Aprellate Tribunal against a case which had been dciided in favour of ar alloltee bv anv forum r r PART I] THE GAZETTE OF PAKISTAN. EXTRA,, FEBRUARYs,2O2I 85 the Authoriry, rt shall not be entertained, without the developer first havinS deposited with the Appellate lribunal at least thfty per cent of the penalry, or such higher pcrcentage as may be determined by the Appellat€ Tribunal, or the total dmount to be paid to the allott€e including interest and compensation imposed on him, if any, or with both, as the case may be, before the said appeal is heard. Eryldnotio . For the puryose ofthis sub-section "person" shall include the association of allottees or any volunlary consumer association registered under any law fo. the time being in force 60. Application for scttlement of disputes and appeals to appellate Tribunat.-{l) Thc Fedcral Govemment or an authority empowe.ed by law or any person aggrieved by any direcrion or order or decision ofthe Authorrty or the inquiry oflicer may prefer an appealto the Appellate Tribunal. (2) Every appeal made under sub-section (l) shall b€ preferred within a period of sixty days ftom the da!€ on which a copy of the direction or order or decision made by the Authority or the inquiry oflicer is received by the Federal Govemment o. the an authorit) empowered by law or the aggrieved person and it shall be in such form and accompanied by such fee, as may be prescribed: Provided rhat the Appellate Tribunal may cntertain any appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not filling it within thal period. (3) On receipr of an appeal under sub secticn (1), the Appellate Tribunal may after giving the parties an opportunity of being heard, pass such orders, including interim orders, as it thinks fit. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties and to the Authority'or the inquiry office!, as the case may be. (5) The appeal pretlrred under sub-section (I), shall be dealt with by it as expeditiously as possible and endeavor shall be made by it to dispose of the appeal within a period of sixty days from the date ofreceipt of appeal: P.ovided that where any such appealcould not 6e disposed of uifiin the said period of sixty days, the App€llate Tribunal shall record its reasons in writing for not disposing ofthe appcal within thatperiod. (6) The Appellate Tribunal may, for the purpose of examining the legalrty or propriety or correctness of any order or decision of the Authority or the inquiry officer, on its own motion or otherwise, call for the records relcvant to deposing ofsuch appeal and male such orders as ltthinks ftt. t6 THE GAZET1E OF PAKISTAN, EXTRA., FEBRUARY 8. 2021 61. Appraisal and Inquiry Oflicer of the App€llate Tribunal or the Authority.-<l) Fo. the purpose of assessing comp€nsatron and to conduct an inaui4 and to submit recommendations to it,.the Appellate Tribunal or the Authority, as the case may be, shall appoint a person on case to cas,r basis where such pr:rson has been a Judge in any courl oflaw in Pakistan. The Inquiry Officer shall give any person charged or concemed with the niatter a reasonable c'pportrniq ofbeing heard. fhe Inquiry officer shall have thc responsibility ard exdusive jurisdiction to, (a) to conduct an inquirl and to submit recommendations t(, it, the Appellate Tribunal or thc Authority on any charge against any person referred to it by the Appellate liibunal or the Authority as the case may bel (b) make an assessment on any matter of compenst.tion or any evaluation of wo(h of a real estate or any claim in any marler of a real Estate and submit recommendations to it, the Appellate Tribunal or the Authority, as the case may be after hearing parties; and (c) to conduct an investigadon on any allegation of financial or administrative iregular(ies against the chairperson or any rnember or any officer or ollicral of the Authority aDd present his recommendations to his appointing authority the Appe ilate 'lLibunal or the Aulhoriry as rhe care may be: (2) The inquiry officer shall be bound by the procedure aid down by tre Ccde of Civil Procedur€, 1908 (Act No. V of t908) and by the 'ules of eviden,re contained in the Qanun-e-Shahadat order, 19E4 (P. O. No. X of 984). (i) The inquiry officer shall have, for the pueose of dischartling his fu.ctions under this Act, the same powers as are vested in a civil c(,ur1 und€r the Code cfCir'il Procedure, 1908 in respect ofthe following matters, rulmel]: (a) summoning ard enforcing the atlendance of any person and examining him on oath; (b) (c) (d) requiring the discovery and production ofdocunrents; receiving evidence on afTidavits; issuing commissions for the examinations of lvitnesses or documents; (e) revrewing its decisions; [PART I PART I] THE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARY8,2021 87 (f) dismissing an application for default or directing it ex parte; and (8) any other matter which may be prescribed (4) The inquiry omcer shall be assisted by the local law enforcement agencies in the discharge ofhis duties. (5) The application lor adjudging compcnsation under sub section (l), shall be dealt with by the inquiry officer as expeditiously as possible and dispose of the same within a period of sixty days from the date of receipt of the application: Provided that \lhere any such application could not be disposed ofwithin the said p€riod oI sixty days, the inquiry officer shall aecord his reasons in writing for not disposmg of the applicatioB within that period. (6) While holding an inquiry the inquiry ollicer shall have power ro summon and enforce the attendance ofany person acquai ed widr thc facts and circumstances ofthe case to give evidence or to produce any document which in the opinion of the inquiry officer, may be useful for or relevant to rhe subject matter of the inquiry and if, on such inquiry, he is satisfied that the p€rsoh has failed to comply with the provisions of any of rhe sections specified in sub s€ction (1), he may direct to pay such compensation or rnterest, as the case may be, as he thinks fit in accordance with the provisions of any of those sections. 62. Factors to be taken into account by inquiry olficer. Whrle adjudging the quantum of compensation or intcrest, as lhe case may be. urLder section 61, the inquiry officer shall have due regard ro the following factors, na-n1ely: (a) the amoont of disproportionate gaiD or unfai advantage, wherever quantifiable, made as a result of the default; (!) (c) (d) the amount of loss cause.d as a result ofthe default; the repetitive lature ofthe default; and such oth€r factors which the inquiry o{Iicer considers necessary to thc casc in firrtherance ofjustice 6i. OfficeN and olher employccs of Appellate Tribunal.{l) Thc Federal Govemment shall provide the Appellate Tribunal with such officers and employees as it may deem fit. EE lHE GAZETTE OF PAKISTAN. EXTRA,, FEBRUARY 8, 2021 IPARiI (2) The officers and employees of the Appellate Trit'unal shall discha4le their functions under.the gcneral superintendenoe of its Chairperson of rhe Appellate Tribunal. (l) The salary and allowances payable to, and the other terms and conditions of service oq the officers and employees of the Appellale Tribu[al shall be such as may bc prescribed. 64. Po\ ers of Tribuml.-{l) The Appellate Tribunal shall be bound by r he procedure laid down by the Code of Civil Prxedure, 190t. (2) The Appe ate Tribunal shall also be bound l)y the !!les ,rfevidenc€ co.taincd in the Qanun-e-Shahadat, 19E4. (3) The Appellate Tribuoal shall have, for the purpose of,lischarging its lunclions under this Ac! the same powets as are vested in a civil ,:ourt under the Code ofCivil Procedure, 190E in respect ofthe following rnatters, namely: (a) surnmoning and enforcing the attendance of any l,erson and examining him on oath; (b) (c) (d) requiring the discovery and production ofdocuments; recciving evrdence on affidavits; issuing commissions lor the examinations of *'itnesses or documents; (e) reviewing its decisrons; (0 dismissing an application for default or directing it expa.te;and (g) any other matter which may be Fescribed (4) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within th€ meaning of sections 193 and 22E of the Pal.istan Penal Code, 1860 (Act xLV of 1860) and the Appellate Trbunal shall be Jeenred to be a court for dre purposes of sections 480 and ,+82 ofthe Code of Crimin:rl Procedure, lE9t (Act V of 1E9t). No court other thar Appellate Trrcunal shall have or exercise any jurisdiction with respect :o an'/ mafter to which the.jurisdiction ofAppellate Tribunal extends under this -a ct. 65- Administr.tivc Powers of the Chairmen of Appellate Tribunrl.-The Chairperson shall have po*ers of general superinteldence ard dircction in thc conduct of the aflairs of Appellate lribunal and he shall. in adcition to presiding over the meetings of the App€llate Tribudal erercise and PART I] THE GAZETTE OF PAKISTAN. EXTRA,. FEBRUARY8,2O2] 89 discharge such administrative powers and functions ofthe Appellate Tribunal as may be prescribed. 66. Vacancies etc. not lo iDvelidsle proceeding of Appetate Tribunal.-No act or proceeding of the APpellate Tribunal shall be invalid merely by reason of (a) any vacancy in, or any defect in the constitution oi the Appellatc [ribunal, or (b) any defect in the appointment ofa psson acting as a Member ofthe Appellate Tribunal; or (c) any i.regularily in the procedure of the Appellate Tribunal not' affectinB the merils of$e case. 67. Right to leBal r€presentatton.-The applicant or appellart or complainant may either apPar in percon or authorize one or more chartered accountants or company secretalies or cost accountants or legal practitioners or any of its omcers to present his or iLs case before the Appellate Tribunal or the Regulatory Authority or the inquLy officer, as the case may be The Appellate Tribunal can summon the applicant or appellant or complainant or the person against whom the complaint has been directed to apPem in person before the Appetlate Tribmal or the Regulatory Authority or the inquiry officer, as the case may be. 68. Orders passed by the App€llat€ Tribunrl to b€ ereculable as a decree.{l ) Every order made by the Appellate Tribunal underthis Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the Appellate Tribunal shall have all the powelt ofa civil coun (2) Notwithstanding an)thing contained in sub-section (l), the Appellate Tribunal may tmnsmit any order made by it to a civil court having local j urisdiction and such civil cburt shall execute the order as if it were a decree made by the court 69. Pcnalty for feilure to comply with ord€rs ofAppellate Tribunal by Dev€loper.-lf any developer, who fails to comply wlth, or contravenes any of the ordcrs, decisions ff dtections of the Appellate Tribunal, he shall be punishable with imprisonment lor a term which may extend up to th.ee years or with fine for every day during which such default continues, which may cumulatively extend up to ten percent of the estimated cost of the real estate project, or with both. 90 THE GAZETTE Ol'PAKIS'IAN, EXTRA., FEBRUARY8.202L IPARr I 70. Pctrf,lO for failure to comply with ord€rs ofAppellate Tribunrl bl'lteal f,state Agent.-If any real estate agent, who fails to comDly \\ith, or conlravenes any ofthe orders or directions of the Authority, he shall be liat'le to a penalty for every day during which such dcfault continues, which may cumulativel)' extend up to five per cent ofth€ estimated cost ol-plot. a.paftlent or building, as the cale may be, of the real estatc projcct, for whrch the sale or purchasr: has been facilitated and f,s determined by the Authoriq,. 7l . Pcnalty for failure to comply with orders of Appellate Tribunal by Real f,state Ag€nt.-lf any real esrate agcnt. who fails to comply with, or contravcnes any of the orders, decisions or directions ofthe Appellat€ Tribunal, he shall be punishable with imprisonment for a 0erm which may extend up to one year or'rr'ith fine for every day during which such default continucs, which may cumulativel) extend up to ten percent oflhe estimated cost of plot, apartyrent or buikling, es the case may be, of the real estrte proj€ct, for which the sale or purchaso has been facilitated, or with both. 72. Penalty for failure to comply with orders ofAppellate Tribuoal by auottee.--If any alloftee, who fails to comply with, or contravenes any ofthe orders or directions of the Appellate Tnhunal, As the case may be, he slall be punishable with imprisorunent for a term which may extend up to Jne year or with fine for every day during which such default continues, whrct, may cumulatrvely ext€nd up to ten percent ofthe plot, apartment or building c)st, as the case may be, or with both. 73. Appesl to Eigh Court. {1) Any pcrson agg evod bv any decision or order of the Appellate Tribunal, may, file an eppeal to thc Isltunabad High Cou4 within a period ofsixty days from the date ofcommunication ofthe decision or order of the Appellate Tribunal, ro him, on any one or more of the grou nds spe. ified in section 100 o f the Code of C ivil Procedure, 1908 (Acr No. V of 1908): l,rovided that the Islamabad High Couft may entertain the appeal after the expiry otthe said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from prcferring the appeal in timc. CIIAPTER VI]I F'INANCE, ACCOI]NTS, AI]DITS AND RXPORTS :74. Granb and Loans by Federal GoyerDment.-The Fcderal Covemfitent may, aftcr due appropriation made by the parliament in this behall make to the Authority any grants and loans of such sums of money as seei monc) rlal Covemmen( ma) consider necessary and releasc t to ihe :;enior Adminisrmtion Ofncer ofthe Authoriry to spend ir on establishmenr ofthe rffice P^RT I] TTIE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARYS.2O2I 91 of the Authorit-v with the assistance of the Ministry of Interior, Covernment of Pakistan. The Authority, in time, shall gcnemte its own sources offunding for its function as wcll. 75. Cotrstitution of Fund.-{l) The Fedeml Covemment shall constitute a fund to be called the'Real Estate ReSulatory Fund' and there shall be crediled thereto, (a) (b) G) (2) (a) all Government grants received by the Authority; the fecs received under this Act, and the interest accrued on the amounts refered to in clauses (a) to (b) 1he Fund shall be spent on the salaries and allowances payable to the Chairperson and other Members, the inquiry offlccr and the administrative expenses including thc salaries and allowances payable to the officers and other employe€s ofthe Authoriry and the Appellate Tribunal; and (b) the orher expenses of the Authority in connection with its establishment and the discharge of its functions and for the purposes ofthis Act (3) The Fund shall be administered by a committee of such Members of the Authoriry as may be determined by the Chairpersoo and before appointment of any Members of the Authority or its Chatperson, by the Administration Oflicer of the Authoriry. (4) The committee appointed uflder sub-section (3) shall spend monies out of the Fund for carrying out the objects for which the Fund has been constituted. 76. CreditiEg sums realized by way of penalties to the Fund,-AU lums realized by way of penalties imposed by the Appellate Tribunal or the Authority shall b€ credited to the F€deral treasury. 77. Budget, accoun6 and audit.-{l) The Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed by the Federal Govemment in consultation with the Auditor General ofPakistan. (2) The accounts of the Authority shall be audited by the Auditor General of Pakrstan at such intervals as may be sPecified by him a-nd any 92 Tf{E GAZETTE OF PAI{STAN EXTR{,, FEBRUARY E, 202 IPARTI expendilure incurred in connection with such audit shall be payable l)y the Arrrhority lo Ihe Audilor Ceneral ofPaLiJan (3) The Auditor-General and any pcrson appointcd b1' him in connection with the audit of the accounts of the Authorily under rhis Act shall have thc sarn€ rights and privileges and authority in connection \rith such audit as thc Audit{)r General generally has in conn€ction with the audit ofGovernment accounts and, rn particular shall have the right to demand and produclion of books, ccounts, connected vouchers and other documents and paPers, d to inipect rrny ofthe offices oflhe Aulhoriry. (4) The accounts ofthe Autiority, as certified by the Auditor-Ceneral ofPakistan or any other person appointed by him in dlis behalf, together qith the audit rerort thereon shall be forwarded annually to the Federal Gor'emment by the Authority and the Fedeml Govemment shall cause the audit repon to t'e laid, as soon as may be after it is recei'/ed, before each House of Parliament (the FedcralLegislature). 78. Annual report.-( l) The Authority shall prepare once in every ysar, in such form and at such time as may be prescribed by the I ederal Govemmenl, (a) a description of all the activities of the Authority for lhe previous year; (b) the annual accounts for the previous year; and (c) the progammes ofwork for the comin8 year' (2) A cop) ofthe repon received under sub seclion rl) shall be aid. as soon as may be after it is received, before th€ Parliament. CHAPTER IX MISCELLANEOUS 79. Bar of jurisdiction.-No civil cou( shall have jurisdicr:iotr to entertain any suit or proceeding in resPect of any matter which the Authority or the inquiry officer or the Appellate'fribunal is empowered by or urrder this Act tc determine and no injunction shall be Sranted by an, court or other authority in respect ofany action taken or to be taken in pursu?rnce ofany powcr,ronfe.red by or underthis Act. E0. Del€gation.-The Authority may, by general or spa:ial order in wriling. delegate to any other Authority or Depanment or any membe, of PAIT I] THE GAZETTE OF PAKISTAN, EXTRA., FEBRUARYS,2O2I 93 Authority, officer olthe Authoritv or any other person subject to such conditions, if any, as may be specified in the order, such of its porvers and functions under thrs Act, except the powcr to makc rcgulations undcr this Act, as it may deem necessary. 81. Power to supcrsede Authority. {I) Il at any time, the Federal Govemment is ofthe opinion, (a) that, on account of circumstances beyond the control of the Authorily, it is unable to discharge thc functions or perform the duties imposed on it by or under the provisions ofthis Act; or (b) that the Authority has persistently defaulted in complying with any direction Biven by the Federal Govemment under this Act or in the discharge ofthe functions or performance ofthe duties irriposed on it by or undcr the prcvisions of this Act and as a result of such default the tinancial position ofthe Authority or the administGtion ofthe Aulhority has suffered; or (c) that circumstarces exist which render it necessary in the public interest so to do, the Federal Govemment may, by notification, supersede the Authority fo. such period, not exceeding six months, as may be specified in the notification alld appoint a person and may direct him to exercise powers and discharge functions under this Actl Provided that before issuing any such notification, the Fede.al Govemment shall give a reasonable opportunjty to the Authority to make representations against thc proposed supersession and shall consider the representations, ifany, ofthe Authority. (2) Upon the publication of a notification under sub-section (l) superseding the Authority, (a) the ChaiQ€rson and other Members shall, as from the date ol supersessioo, vacate their offices as such; (b) all the powers, functions and duties which may, by or under the provisions ofthis Act, be exercised or discharged by or on behalf of the Aurloflly shall, until the Authority is reconstituted under sub section (3). bc cxercised and discharged by the person or persons refened to in sub-section (l); and 94 T]tE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARYS,2O2I [PART I (c) all properties owned or controlled by the Authorrty shall, until the Authority is reconstituted under sub-section (3), vest in the F'edeml Govemment. (l) On or before the expiration ofthe period of supersession specified in the n,rtification issued under sub-section (1), the Federal Golenrmenr shall reconstjtute the Aurhority by a fresh appointment of its Chairperso[ and other members and in such case any person rvho had vacated his ofEce undrr clause (a) ofsub-section (2) shall not be deemed to be disqualified for re-appoinrment. {4) The Fedcral Goremment shall cause a copy of the notification issued under sub-section (1) and a tull report of any action taken under this secticn and the circumstances lcading to such acrion to be laid before each Souse ofParliament. 32 Power (o issu€ Dircctions to Authority and ohtain reporls and rcturns.{l) Without prejudice to the foregoing provisions of this Ad, the Authority shall, rn exercise of its powers and in periormance of i1s functions irnder th s Act, be bound by such directions on questions ofpolicy, as the Fcderal Govemnlent may give in writing to it from time to time' l'rovided that the Authoritv shall, as far as practicable, be given an oppcrturLity to express its vicws before any direction is given undr:r thi; sub section. t2) Ifany dispute arises behveen the Ministry and the Authoriq as to whelher a qLrestion is or is not a question of policy, the decisron of the Federal Gc,vcmnlent thereon shall be final {3) The Authority shall fumish ro the Ministry such rehrrns or other inlbrmation with respect to its activiti€s as the Ministl)-' may, from time tc time, require, :13. Porderc to make rules.-{]) The Federal Govemment, within a period of six months of the commencement of this Act, by notification, male ru'es for carrying out the provisions of this Act in particular, and $ithout prejudicc to the generality of the foregoing powcr and publish them in thc official Gazette, such rules may provide lor all or any of the followiDg matters, namely: (a) standard fees to be levied on the develop€r, the allottcelr or ttLc real estate agent for registration and renewal of r€giskati(,n wirh the Authoriry under fiis Acr: (b) the maintenance and preservation of books ofaccount, records and documents of the Authority, I'HE GAZDTTE OF PAKISTAN, EXTRA, FEBRUARYS,2O2I 95 (c) the administrat;ve powers of the Chairperson ofthe ADthority and the salaries and allowances payable to, and the other terms and conditions oflhe Chairp€rson ard members ofthe Authority; (d) the manner of inquiry by the Inquiry Otficer , aurhority and appellate Authoriq/; (e) the additional functions which 'nay be performed by the Authoriq; (f) the manner of implementation of the order, dtection or decisrons of the inquiry oflicer. lhe nulhorit) or the Appellale TribuDal under this Act; (g) thc salaries and allowances payable to, and the other terms and conditions ofservice of, the Chairperson and other Members ofthe Authority and Appellate Tribunal; (h) the procedure for inquiry of the charges of adminisffatlve or financial inegularities against the Chairperson or Member of the Tribunal; (i) the powers oflhe Chairperson ofthe Appellate Tribunal; (j) the form to be specified in which the Authority shall p.epare a budget, maintain proper accounts and other relevant records and prepare an amual statemcnt of accounts under sub-section (1) of section 77; (k) the form in whrch and time at which the Authority shall prepare an annual report under sub-section (1) ofsection 7E; (l) any other mafter which is to be, or may be, prescribed; and (m) any orher powers ofthe Authority or the Appellate Tribunal (2) The Authoriry, within a period of six months of the commencemeflt ofthis Act, by notification, makc rulcs for carD/ing out the provisions of this Act in pa(icular, and without prejudice to the generality of the foregoing power and publish them in the omcial Gazctte by lts own authority. such rulcs may provide lbr all or any ofthe fbllowing matters, namgly: (a) Application form and manncr of making application and fec and information and documents with the application by th€ Developer to Authority for his reglstration; 96 T]IE GAZETTE OF PAKISTAN. EXTRA., I'EBRUARY8, 2O2I (b) the discharge of other functions by the real eslate agent under clause (e) ofsection l0: (c) the rate ofinter€st payable under any provision ofthis A:t; (d) the administrative powers ofthe officers and other empbyees ofthe Authority and the salaries and allowances payable theftdo. and the olher Ierms and condiLions ol their :ervicei (e) the administrative powers ofthe omcers and othe. employees ofthe Appellate Tribunal and the salaries and allowances payable thereto, and the other terms and conditions of service of the officers and employees of the Appellate Tribunal; rl0 the details to be published on the website by the Authodly a]rd the developer; (g) the manner of rccovcry of interest, penalLv and corhpensatior fiom the developer; and (h) any other rnatter which is to be, or may be, prescribed 34. Powcrs to make regulrtions ofthe authority.-{1) The Authority shall, within a period of three months of rts establrshment, by notific{ion, makc regulaticns, consistent with this Act and the rules made thereunder 10 carry out the purp,rses ofthis Acl. (2) In particular, and without prejudice to the generaiity c,f the foregoing power, such regulations may p.ovide for all or an-\, of th,: foll)wing matters, namely: (a) thc form and manner of making application and lee payable herewith under sub-section (1) ofsection 4; (b) the lorm of application and the fees for extension of regislration under section 6; (c) such other information and documents required [nder clause (0 oI sub-section (l) ofsection I l; (d) display ofsanctioned plans, layout plans along wrth specifications, approved by the an authorit) empowered by law, for diiplay under clause (a) o f sub-section (3 ) of section 1 1 ; (e) preparation and maintenancc of other details under sub-secti,)n (6) ofsection 1 l; PART II THE GAZETTE OF PAKISTAN, EXTRA,, FEBRUARYE,2O2I 97 (0 rime, plaoes and the procedurc in regard to transaction of busifless at the meetings ofthe Authority under sub-section (1) ofsectior 30; (g) the liorm. manner and fees for filing a complaint under sub-section (2) of section 31aM (h) any other mattcr whioh is required to be, or may be, specifred by . regulation or in respect of which provision is to be made by regulation. 85. Members etc. to bc public serants.-The Chairpefion, Members and other ot'ficers and employees of the Authoity, and the Appellate Tribunsl afld thc inquiry olTicer shall be deemed to be public servants within the meaning ofsection 21 ofthe Pakistan Penal Code. 86. Act to have overridirg effect.-Thc provisions of this Act shall have an oveniding effec! notwithstanding an),thiflg inconsistent therewit]r contained in any other law for the time behg in force. 8?. Prot€ction of actions tak€n in good faith.-No suit, prosecution or oth;r legal proceedings shall lie against the Federal Govemment ot the Authority or any omcer of the Federal Covemment or any member, officer or other employees of the Authority for arything which is in good faith done or intended to b€ done under this Act or the rules or regulatioN made ther€uDder as determined by the Appellate Tribunal under this AcL 88. Power to remove diltculties.{1) tf any dimculty ariscs in giving effect to the provisions of this Act, the Federal Govemment may, by order, published in the official Gazette, make such provisions not inconsistent wilh rhe provisions of lhis Acr as ma) dppear lo be neces$ry for rsmoving rhe dificultv: Provided that no order shall be made under this section after the expiry oftwo years from thc datc of the commencement ofthis Act. (2) Every order made under this section shall be laid, as soon as may be, before each House ofthe Parliament. TAHIRHUSSAIN. Secrctqry. PPIN'IED BY'I1II MAIiACEX. PruNNNG CORPOR-{TION OF PAflSTAN PRESS. ISLAMABAD PUBTIHED BY 1HI DEPUTI CONTROLI-FR, SI.AI'IONERY AND }ORMS. UNIVERSITY ROAD. X-AXACIII