40. DEVELOPMENT OF A SANCTIONED SCHEME

The sponsor shall:

(a) Execute all development works within the time mentioned as under:

(i) two years, in case of land sub-division or an area up to 100 kanals;

(ii) three years, in case of an area 101 kanals to 300 Kanals; and

(iii) five years, in case of an area above 300 kanals;

(b) Undertake development works after Issuance of approval of design and specifications by the concerned agencies; and

(c) In case of water supply, sewerage and drainage works, intimate the name and address of the pipe manufacturing factory to the agency which approved design and specifications of water supply, sewerage, and drainage.

49. MONITORING OF DEVELOPMENT WORKS

(1) The Authority shall ensure that there is no deviation from the sanctioned housing scheme plan.

(2) The Authority or the Agency which approved design and specifications or any person authorized by either of them shall:

(a) Conduct, without prior notice, regular site visits to ensure that development works are being executed in conformity with approved design and specifications;

(b) Carry out hydraulic tests for sewer and water supply lines;

(c) Determine testing laboratory, types and the number of tests to be performed;

(d) Complete testing and inspection prior to backfilling of trenches and paving road surface;

(e) Intimate the sponsor to rectify any deviations from approved design and specifications; and (1) take action against the deviations or violations as per law.

(3) A sponsor shall:

(a) Prior to commencement of development works, inform the agency which approved design and specifications in writing of his intention to commence the development works;

(b) Engage services of public health, structural and electrical engineers, registered with Pakistan Engineering Council, to ensure quality control and execution of works in accordance with an approved design and specifications; and

(c) Rectify any deviations from the approved design and specifications as intimated under clause (e) of sub-rule (2).

(4) Testing and inspections carried out by the agency which approved design and specifications shall be at the cost of the sponsor.

50. EXTENSION IN TIME

(1) If a sponsor fails to complete the development works within the given time owing to reasons beyond his control, the Authority may, after recording reasons, extend the period for completion of the development work up to two years on payment of penalty of ten thousand rupees per Kanal per year, or part of it, for the total area of the scheme but no further extension shall be allowed.

(2) The Authority may extend the development period for less than two years on payment of penalty as prescribed in sub-rule (1) proportionate to the period requested by the sponsor if it is satisfied that the remaining development work can be completed in such lesser period.

(3) In case of a housing, scheme approved poor to the enforcement of these rules, the Authority may, on a written request of the sponsor, allow an extension for a maximum of two years, irrespective of the time lapsed, on payment of the sum of rupees ten thousand per Kanal per annum for the total area of the scheme but no further extension shall be allowed.

51. RELEASE OF MORTGAGED PLOTS

The Authority shall release the mortgaged plots in proportion to development works consisting of:

(a) Water supply sewerage and drainage;

(b) Roads work;

(c) Electricity and street lights;

(d) Sui gas (if available); and

(e) Horticulture and solid waste on obtaining field reports from the Agency which approved design and specifications about the satisfactory completion of work or full payment of charges to the agency or department concerning electricity and to Sui Northern Gas Pipeline Company, as follows:

(i) On completion of 25% of the development works, up to 24% of the mortgaged plots shall be released;

(ii) Further mortgaged plots shall be released in proportion to every stage of LO% completion of works;

(iii) Four percent of mortgaged plots shall be attached with the management and maintenance of the housing scheme; and

(iv) After completion of development works, on submission of a written request for the maintenance of housing scheme by the sponsor or handing over of the housing scheme to the association of the residents of the housing scheme, the remaining 0% plots shall be released.

52. Release of the bank guarantee.-The Authority shall allow a sponsor to reduce the bank guarantee in proportion to development works consisting of:

(a) Water supply sewerage and drainage;

(b) Roads work;

(c) Electricity and street lights;

(d) Sui gas (If available);

(e) Horticulture and solid waste on obtaining field report from an agency, which approved design and specifications about the satisfactory completion of work or full payment of charges to the agency or department and to Sui Northern Gas Pipeline Company, as follows:

(i) on completion of 25% of the development works, 24% of bank guarantee shall be reduced to the sponsor; (ii) on completion of 50% of the works, further 24% of the bank guarantee shall be reduced to the sponsor;

(iii) On completion of 75% of the works, further 24% of the bank guarantee shall be reduced to the sponsor;

(iv) On completion of the entire development works further 24% bank guarantee shall be reduced to the sponsor; and

(v) After completion of development works, on submission of a written request by the sponsor for the maintenance of housing scheme or handing over the housing scheme to the association of the residents of the housing scheme, the remaining 4% bank guarantee shall be reduced.

53. DEFAULT AND ACTION

(1) The Authority besides any other action, shall Impose the fine mentioned at rule 36 on the Sponsor if he continues to develop the housing scheme without the approval of the lay-out plan or if he fails to develop the housing scheme within the stipulated period.

(2) In addition to the above, the Authority may take over the development works of the scheme and execute the development works from the sale proceeds of mortgaged plots or encashment of bank guarantee.

(3) If the cost of development is more than the proceeds as mentioned in sub-rule (2), the Authority may recover the extra amount from the sponsor as arrears of land revenue.

59. MANAGEMENT OF HOUSING SCHEME

(1) After the development works are completed and plots are handed over to allottees, the sponsor of the scheme shall submit an undertaking to the Authority that he shall remain responsible for the management and maintenance of the housing scheme.

(2) In case the sponsor is not willing to continue to undertake the management and maintenance of the housing scheme, the sponsor shall, in writing, hand over the management and maintenance of the housing scheme to the association of the owners of plots in the scheme, Incorporated under any law, and such Association shall be responsible for the management and maintenance of the housing scheme, including water supply, sewerage, drainage, street lights, electricity, parks, roads, solid waste, and graveyard till such time that these services are taken over by the Government or its agency.

(3) The sponsor, or as the case may be, the Association:

(a) Shall make appropriate security arrangements;

(b) Shall manage the buildings of common use such as mosques and clubs, and

(c) May raise fee or dues to disburse the expense incurred on the maintenance and management of the housing scheme.