Keyword(s):
Completion Certificate, Occupancy Permission

BIHAR APARTMENT OWNERSHIP (AMENDMENT) ACT 2011
AN
ACT
TO AMEND THE BIHAR APARTMENT OWNERSHIP ACT, 2006 (BIHAR ACT 28, 2006)
BE it enacted by the legislature of the State of Bihar in the sixty second year of the
Republic of India as follows:—

  1. Short title, extent and commencement. —(1) This Act may be called the
    Bihar Apartment Ownership (Amendment) Act, 2011.
    (2) It shall extend to the whole of the state of Bihar.
    (3) It shall come into force at once.
  2. Amendment of Section 3 of Bihar Act 28, 2006 – In Section-3 of the said Act
    the following amendments shall be made :—After clause (x) of Section 3 of the said
    Act the following new clauses (y) and (z) shall be added respectively :-
    (1)”(y) “Completion Certificate” means a certificate given by the
    Promoter/Developer/Builder to the Competent Authority in the prescribed
    form regarding completion of the project as per sanctioned plan and in
    conformity with all conditions of laws and rules with an intention to obtain
    occupancy permission from the Competent Authority.”
    “(z) “Occupancy permission” means the permission in writing given by the
    Competent Authority, on receipt of the Completion Certificate and being
    satisfied after due inspection of the apartment that all conditions have been
    complied with, permitting the use of Apartment or a part thereof.”
    (2) Clause (o) of Section 3 shall be substituted by the following :-
    “(o) “Local Authority” means an institution of self government constituted
    under Section-12 of the Bihar Municipal Act, 2007 as amended from time
    to time and includes a Municipal Corporation, a Municipal Council, a
    Nagar Panchayat and any Development and Planning Authority
    constituted under any law.”
    (3) In clause (i) of Section -3 the said Act the words “including setback area”
    shall be added after the words “land and the building”.
  3. Amendment of Sectio -6 of the Bihar Act 28, 2006- Following amendments
    shall be made in Section-6 of the said Act, namely :-
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    (1)In Section – 6, after the words “the bye-laws” the words “decisions of the
    Association of Apartment owners regarding sharing of common
    expenses, Common Profits, service charges” shall be added.
    (2) Section- 6 of the said Act shall be renumbered as Section 6(1).
    (3) After Section – 6(1) of the said Act the following new sub-sections (2),
    (3) and (4) shall be added respectively :-
    ” (2) In case the Manager or Board on behalf of the Association of
    Apartment Owners or, in proper case, an aggrieved Apartment Owner,
    is not able to recover sums due for damages, or for inductive relief, or
    both, the Manager or Board on behalf of the Association of Apartment
    Owners may make an application to the Competent Authority who
    shall cause such recovery to be made in the manner prescribed in
    Rules.”
    “(3) The Manager or Board on behalf of Association of Apartment owner
    may make an application to the Competent Authority for the
    collection of the share of common expenses and service charge from
    the Apartment Owner who defaults on such payment and inspite of
    the efforts of the Association or the Manager or the Board refuses to
    pay his share for six months, and the Competent Authority shall get
    the amount equal to the share recovered from the apartment owner
    in the manner prescribed in Rules.”
    “(4) All dues for damages, or for inductive relief, or both, and dues of
    common expenses and service charges against an Apartment Owners
    shall be treated as arrear of property tax and shall be recoverable as
    such.”
  4. Amendment of Section-7 of The Bihar Act 28, 2006. – In Section-7 of the said
    Act the following amendments shall be made, namely :-
    (1) A new subsection (1a) shall be inserted after subsection (1) of Section 3 :-
    “(1a) Every promoter or developer or builder shall get itself registered with
    such Authority and in such manner as prescribed in Rules.”
    (2) Clause (i) of Sub-Section (2) of Section-7 shall be substituted by the
    following:-
    “(i) Not allow allottee to enter into possession of Apartment or a part
    thereof until the Completion Certificate is given by the Builder to the
    Competent Authority, and a ‘Occupancy Permission’ is granted by him
    and no allottee shall take the possession of the Apartment or a part
    thereof until Occupancy Permission has been duly granted by the
    Competent Authority.”
  5. Amendment of Section – 8 of The Bihar Act, 28, 2006. – The following new
    sub-section (1a) shall be inserted after subsection (1) namely :- (1a)”Every Owner
    shall become a member of a cooperative society or a company constituted by person
    taking the Apartment for managing the affairs of the Apartment.”
  6. Amendment of Section – 17 of the Bihar Act 28, 2006. – In Section-17 of the
    said Act following amendments shall be made namely :-
    (1)In Section 17(1) the words “with fine which may extend to two thousand
    rupees” shall be substituted by the words “with fine which may extend to
    one lakh rupees”.
    (2)In Section 17(1) clause (d) shall be added after clause (c).
    6 बहार गजट (असाधारण), 9 tuojh 2012
    (3) The following proviso shall be added to Section 17 (1) :-
    ”Provided that if any Promoter contravenes the provision of Section 7(2)
    (f) he shall, after the lapse of a period of six months from the date on
    which the possession of the Apartment was to be given, be
    punished with a fine as may be provided in the rules for every
    subsequent month of delay and the fine thus collected shall be paid to
    the owner/allottee of the Apartment.”
    (4) In Section 17(3), the words “which may extend to two lakh
    rupees” shall be added after the words “with fine” and the words “apart from
    the construction being stopped and the violation being ordered to be
    removed” after the words “or with both.”
    (5) The following new Section 17A and Section 17B shall be added
    After Section 17, namely :-
    “17A – Any Owner who contravenes the provisions of Section 7(2) (i)
    shall be punishable with a fine which may extend to fifty thousand
    rupees.”
    “17B – The fine imposed under Section 17A shall be treated and
    realizable as tax on property.”
  7. Amendment of Section-32 of the Bihar Act 28, 2006. – In Section 32 of the
    said Act, the following new clauses (i) and (j) shall be added to Section -32(1)
    respectively :-
    “(i) To impose penalty upon developer, promoter, apartment owner,
    Association of Apartment Owners, Managers or Board who in any way
    violates the approved building plan of the Apartment or any premises
    under the Bihar Apartment Ownership Act, 2006 and Rules or byelaws made thereunder.”
    “(j) To receive ‘Completion Certificate’, conduct inspection, order
    remedies and modifications and issue “Occupancy Permission”.”
    By order of Governor of Bihar,
    OM PRAKASH SINHA,
    Joint Secretary to Government.