(1) For the purposes of subclause (D) of clause (l) of sub-section (2) of section 4 of the Act, the land cost shall be the market value of the land including the costs incurred by the promoter towards the stamp duty and the registration fees for acquiring ownership over the land either for freehold or leasehold
(2) For the purposes of sub-clause (D) of clause (l) of sub-section (2) of section 4 of the Act, the construction cost shall be the cost incurred by the promoter, towards the on-site expenditure for the physical development of the project including the cost incurred by way of fees/charges paid towards obtaining necessary statutory clearances including cost of Transfer of Development Rights, premium Floor Space Index charges, Finance Cost for the construction of the project and professional consulting charges.
Explanation: For the purpose of sub-clause (D) of clause (l) of sub-section (2) of section 4 of the Act, the engineer shall certify that the items shown in the cost of construction is matching to the physical condition at the site of the real estate project; the architect shall certify that the physical condition at the site is built as per the sanctioned plan; and chartered accountant shall certify the cost incurred on construction cost and land cost; the chartered accountant shall also certify the proportion of the cost incurred on construction and land cost to the total estimated cost of the project. After completion of the project, the promoter shall be entitled to withdraw the balance amount lying in the separate account subject to obtaining the certificate from the engineer, architect and chartered accountant as mentioned above.