In a bid to facilitate the colonisers and also ensure safety of home buyers, the Haryana's town and country planning department has changed the conditions for granting the licence for a project.
As per the old rules, the department first assessed the financial capacity of the builder at the time of issuing the letter of intent (LoI). The financial strength of the builder was examined once again before the issuance of the licence.
These rules came into existence in 2012, and later in 2018, the department made some changes to the norms. The existing rules were further amended on Jan 13, and supersede the previous guidelines, according to an internal communication of the department.
The builder had to go through the same exercise twice and there were instances where the title of the land changed between the period of issuing the LoI and the licence. This impacted the credibility. Now, the builder will be asked to furnish the details regarding financial capacity only ahead of getting the licence. The company or builder must prove that its financial capacity was more than the cost of the entire project. In the case of shareholding, the company's financial capacity should match its paid-up capital.
Adopting a dual system sometimes delayed the scheduled start and completion (of the project). Now, the time taken to scrutinise the project and the builder will be reduced. The rest of the terms and conditions remain unchanged.
In the case of collaboration, the financial capacity of collaborators shall also be calculated. This will be in addition to the close monitoring of the strategy adopted by companies for fund generation as well as the sale of project units.
