The Delhi High Court on Tuesday issued a series of measures for implementation of the Delhi Apartment Ownership Act, 1986. A Division Bench of the Court comprising Justice A. K. Sikri and Justice Ajit Bharihoke passed the directions for implementation of the Act on a public interest litigation filed by an advocate alleging that the Delhi Government was not implementing the Act saying that it did not provide for penal action in case of violation of its provisions.
The Bench directed the Government to appoint a competent authority for each area and the competent authority in turn might authorise officers of the rank of Deputy Commissioner or Joint Commissioner for implementation of the Act.
As for registration of the deed of an apartment, the Bench said the promoter/builder in all classes where the transfer had taken place under the sale deed or lease deed or transfer by endorsement, prior to the date of the order which might be passed by this Court, should execute the deed in a proforma as may be approved and issued by the competent authority and this should be done within two months from the date of appointment of the competent authority.
For existing owners, the deeds of apartments shall be prepared by them and the builders and they would be presented before the sub-registrar for registration, the order said. Further it would be the responsibility of the builder to do so as provided in the Act. The builder would also deliver a certified copy of the registered deed to the owner of the apartment after it was registered, the order stated.
Leasehold land
In case of leasehold land, the deed of the apartment should be entered into by three parties, promoter, apartment owner and the Land and Development Officer as confirming party while in case of free-hold land, the deed should be entered between the builder and apartment owner, the order said.
The Bench directed the competent authority to issue notices to the builders of all the multi-storey apartments in the Capital directing them to execute sale deed or lease deed or transfer by endorsement in favour of the buyers within a fixed period.
For future sale and purchase of apartments, the Bench said the deed would be registered within one month of its execution by the builder and the owner.
The terms of the deed shall include, among other things, conveyance of exclusive ownership and possession of apartments, title to such interest percentage of undivided interest in the common areas and facilities, including land, as might be specified in each deed computed on the basis of proportionate value of the apartment to the total value thereof, the order stated.
Penalty charges
The terms of the deed should also make the right an interest in the property inheritable and transferable. Failure to execute the deed would be treated as evading payment of necessary stamp duty and registration charges and the Registrar would impose necessary penalty on the violators under the Indian Stamp Act and the Registration Act and action for recovery of necessary charges could also be initiated. If failure and inaction on the part of the builder in executing and registering sale deed of an apartment was proved, the buyer shall be treated as the owner of that apartment for the purpose of getting benefits under the Act, the order said.
The competent authority shall send specific notices to all multi-storey apartments informing their owners that it is their right to form owners' association and the officials from the office of the competent authority shall be deputed to visit all these apartments to ensure formation of owners' associations, the order said.
Once an apartment owners' association is formed, it shall take over the management from the builder and all the books of account and other documents shall be handed over by the builder to the owners' association and all functions would be performed by it, the order said.
