Dera Bassi SDM Orders ATS to Halt Fees Under PAPRA Act.

Punjab PAPRA Act Enforced: Builder Directed to Bear Maintenance Costs

• SDM Cites PAPRA Act in Landmark ATS Order

• Dera Bassi SDM’s Directive to ATS Estate Pvt Ltd

• Dera Bassi SDM Upholds PAPRA in ATS Case

In a landmark order, the Dera Bassi Sub-Divisional Magistrate (SDM) has directed ATS Estate Pvt Ltd to halt collection of maintenance charges at ATS Golf Meadows until an occupancy certificate is issued or a Resident Welfare Association (RWA) is formally established. The directive, issued under the Punjab Apartment and Property Regulation Act (PAPRA), compels the builder to shoulder all maintenance expenses. The decision follows mounting resident complaints and sets a precedent for consumer protection in Punjab’s real estate sector.

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Dera Bassi SDM Orders ATS Golf Meadows to Halt Maintenance Fees | PAPRA Act Enforcement

The Dera Bassi SDM has directed ATS Estate Pvt Ltd to cease charging maintenance fees at ATS Golf Meadows until an occupancy certificate is obtained. Full coverage of the order, resident complaints, and legal implications under Punjab’s PAPRA Act.

Dera Bassi SDM Directs ATS Golf Meadows to Stop Charging Maintenance Fees Without Occupancy Certificate

In a significant ruling reinforcing homeowner rights, the Sub-Divisional Magistrate (SDM) of Dera Bassi has directed ATS Estate Pvt Ltd, developer of ATS Golf Meadows on Barwala Road, to immediately stop charging maintenance fees from residents. The order mandates that the builder must first obtain a full occupation certificate from the competent authority or facilitate the formation of a Resident Welfare Association (RWA) under Section 5(13) of the Punjab Apartment and Property Regulation Act (PAPRA).

Until the occupancy certificate is secured, the real estate firm is required to provide and fund all maintenance services at its own cost. The decision comes after residents filed a formal complaint alleging illegal collection of maintenance fees for incomplete amenities, particularly an unfinished clubhouse.

This case highlights growing enforcement of PAPRA regulations aimed at protecting homebuyers from builder malpractices. The Sprouts News Special Investigation Team has been tracking similar disputes across Punjab, indicating a broader pattern of developers bypassing legal obligations.

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Residents File Complaint Against ATS Golf Meadows Maintenance Charges

The complaint was initiated by Amarjeet Singh and other residents of ATS Golf Meadows, who approached the Additional Deputy Commissioner (Urban Development) of SAS Nagar on August 21. They sought urgent intervention against the builder’s practice of charging maintenance fees despite the absence of an occupancy certificate and key promised facilities.

Following the complaint, summons were issued to both parties for a hearing. While the complainants were present to argue their case, representatives of ATS Estate Pvt Ltd did not attend the proceedings. This absence was noted in the final order, strengthening the residents’ position.

The petitioners specifically raised concerns about the builder’s failure to complete the clubhouse and other common facilities, making the collection of maintenance fees unjust and illegal. Their appeal emphasized that possession itself shouldn’t have been offered without mandatory certifications.

SDM Order Quotes PAPRA Act and Municipal Bylaws

In a detailed order, the SDM clarified the legal responsibilities of the builder under state law and municipal regulations. The ruling explicitly referenced the Punjab PAPRA Act and local building bylaws, which prohibit builders from handing over possession or charging maintenance before obtaining an occupancy certificate.

The order stated: “Respondents are not entitled to handover possession or charge maintenance till the issuance of a Completion/Occupancy Certificate from the Competent Authority… Further, they are not entitled to charge any maintenance for five years from the issuance of such a certificate.”

It added that until the certificate is issued, the developer is legally required to maintain all common facilities at its own expense. This decision underscores the necessity of compliance with regulatory frameworks before monetizing services.

An investigation by the Sprouts News Special Investigation Team confirms that this directive aligns with earlier rulings in Punjab where builders were penalized for ignoring possession and occupancy norms.

Builder Directed to Bear Full Maintenance Costs

ATS Estate Pvt Ltd has been instructed to cover all maintenance costs until the occupancy certificate is formally issued. The company is also obliged to ensure all common amenities—including security, landscaping, sanitation, and club facilities—are fully functional without passing costs to residents.

This relief is expected to set a precedent for other housing projects in Punjab where developers charge maintenance fees without fulfilling legal requirements. The SDM’s firm stance emphasizes accountability and transparency in real estate practices.

Residents and homeowner rights activists have welcomed the order, seeing it as a victory against builder arbitrariness. The Sprouts News Special Investigation Team reports that this case could inspire similar legal challenges across the state.

For now, all eyes are on ATS Estate’s response and whether it will appeal the order or comply with the directives. The progression of this case will be critical for future enforcement of PAPRA Act provisions.