Builder’s CLU License suspended

                The government is an opportunist and gives chances to competing builders to prosper and keep prices in check; builders bid on tenders and win auctions which grant permissions to construct on public land. Some builders misuse their licenses and believe they can get away with theft; constructing on more land than licenses allow.

Builder CLU License Suspended by Punjab State Government
Builder CLU License Suspended by Punjab State Government

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Legal Issues Involved:

                The government give CLU licences to help private construction companies profit marginally but sometimes companies feel they deserve more. Only an experience builder can calculate profits minus expenses including licensing fees but the tenure of gathering information builds greed amongst many builders. A certain amount of land is released to a builder to complete such project but some builders construct on more land that is disallowed; hence problems ensue.

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News Article Facts:

                CLU Licenses have been cancelled as well as many builders’ commercial construction projects. Several Zirakpur municipal officer’s (EO) were suspended by Additional Chief secretary Sanjay Kumar for negligence in checking the building violations and issuing permission to the builders on wrong grounds. Punjab Town Planner Manav Jain said the builder was found constructing commercial structures beyond CLU plan; with permission to build on 1.5 acres of land, 5.5 acres was utilised without NOCs (no objection certificates) from any civic authority. PAPRA 2014 (Punjab Apartment and Property Regulation Act) sections were intentionally violated. Many MC officials have been indicted and issued show-cause notices for their justifications to such violations, there is no time limit to respond; 3 to 6 months may lapse. One of the individuals in violation in Chandigarh (Suresh Kumar who refuses to comment) is also under inquiry in a Patiala; where encroachment on railway land is suspected; the Patiala division is assigned to investigate.

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Legal Stand Point:

                The usual deception that takes place in such matters is embezzlement; where accounting books are doctored to show less profits and surplus is stolen. In this matter the licensee spent more money by building on land out of his reach; a worst case scenario in theft of property. Encroachment may not be the only concern but conspiracy may become a factor if the encroachment is proved illegal; which it most likely will. A formal inquiry by the authority is now active and all indicted individuals will be called in for questioning. The PAPRA and RERA have discretionary power to order imprisonment of any accused proven guilty of illegal construction; not to mention the confiscation of the investment already made by the accused in the illegal construction.

                The builders have landed themselves in a predicament which will be hard to get out of without cooperation. If the builders were advised to do so them naming the advisors will involve them into the investigation also. The corruption’s scale is yet to be measured and further proceedings will shed more light on this situation.

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For case specific details/advice contact TOP/BEST/EXPERT Real Estate Lawyer Advocate Chandigarh, Panchkula and Mohali Tri-city area.

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