(1) No promoter shall, after he enters into an agreement under section 7, mortgage or create a charge on the flat or the land on which such flat is constructed without prior consent of the person or persons with whom such agreement is entered into.
(2) If any promoter—
(a) executes such mortgage or creates such charge without the prior consent of the person or persons as aforesaid after the agreement is registered under section 7, or 196 The West Bengal Building (Regulation of Promotion of Construction and Transfer by Promoters) Act, 1993.
XX of 19931 (Section 10.)
(b) fails to give possession of a flat, duly completed, by the date specified in the agreement or by the further date agreed to by the parties, or
(c) is unable, for reasons beyond his control or beyond the control of his agent, to give possession of the flat by the date specified in the agreement under section 7 or by the further date agreed to by the parties, and a period of three months thereafter, or a further period of three months if such reasons still exist, has elapsed, the promoter shall, without prejudice to any other remedies to which he may be liable under this Act or any other law for the time being in force, be liable on demand to refund the amount already received by him in respect of such flat with simple interest at the current bank rate from the date of receipt of such amount till the date on which the amount and the interest thereon is refunded, and the amount and the interest shall, subject to any prior encumbrance, be a charge on the land and the building thereon, if any, to the extent of the amount due:
Provided that—
(a) if the promoter wilfully delays the construction of the flat and does not complete the construction thereof within the period specified in the agreement under section 7 (hereinafter referred to as the specified period), and gives possession of the flat to the party after the expiry of the specified period, he shall pay compensation at the rate of twelve per cent. of the advance payment or deposit to the party for the period commencing from the date following the date of expiry of the specified period to the date of giving possession of the flat, and such compensation shall be adjusted against the price of the flat in such manner as may be prescribed, or
(b) if the promoter delays the construction of the flat beyond the specified period without any prima facie reason therefor, and the party expresses its unwillingness to take possession of the flat as and when completed and claims refund of the advance payment or deposit, the promoter shall refund the advance payment or deposit and shall pay compensation at the rate of twenty-five per cent. of such advance payment or deposit.
10. If a minimum number of persons required to form a co-operative society have formed an organization and have taken flats, the promoter shall, within a period of two months from the date of taking flat by the last member of such organization, submit an application to the Registrar for registration of such organization as a co-operative society (by whatever name called) and shall join, in respect of the flats which have not been taken, hi such application for membership of the co-operative society.
Promoter to take steps for formation of co-operative society.
197 The West Bengal Building (Regulation of Promotion of Construction and Transfer by Promoters) Act, 1993.
[West Ben. Act (Sections 11, 12.)
Promoter to convey title etc. and to execute documents according to agreement.
Insurance against loss or death.
11. Every promoter shall take all necessary steps to complete his title and convey to the organization of persons taking flats, which is registered as a co-operative society his right, title and interest in the land and the building, and shall execute all relevant documents therefor in accordance with the agreement under section 7, and if no period for the execution of the conveyance is agreed upon, he shall execute the conveyance within the prescribed period and shall deliver all documents of title relating to the property which may be in his possession or. power.