Act of Naya Pakistan Housing & Development Authority (NAPHDA)

Acts, Ordinances, President's Orders and Regulations

Goverment of Pakistan Ministry of Law, Justice, Human Rights & Parlimantry Affairs

SENATE SECRETARIAT- No.F.9(16)/2020-Legis. - Pub Islamabad, the 15th January, 2020

ACT NO. V of 2020

An Act to provide for housing and real estate development and other activities related to land and construction through the establishment of Naya Pakistan Housing and Development Authority.

Whereas the Constitution of the lslamic Republic of Pakistan, 1973, requires the State to endeavour to provide housing, a basic necessity of life, to its citizens;

And whereas it is expedient to establish the Naya Pakistan Housing and Development Authority for the purposes of planning development, construction and management of real estate development schemes and projects, including housing and matters connected therewith and ancillary there to so as to pursue philanthropic and other objectives on profit and non-profit basis and to carry out refurbishrnent, uplift or establishment and maintenance of infrastructure, roads etc. and the performance of other civic and municipal ventures or tasks.
lt is enacted as follows:-

PRELIMINARY

1. Short title, extent, commencement & application

1. This Act shall be called the Naya Pakistan Housing and Development Authority Act, 2020.

2. It extends to the whole of Pakistan.

3. It shall come into force at once.

2. Application

This Act shall apply to the works, lands and buildings owned or acquired by, vested in or in the possession of the Federal Government in the specified area and the schemes developed or redeveloped under this Act.

3. Detinitions

In this Act :
a) "Acting Chairman" means the Acting Chairman of the Authority appointed in terms of sub-secticns (6) or(7), respectively, of section 10;

b) "Adjudicator" means an Adjudicator of the Authority appointed in accordance with section 4l ;

c) "Appellate Tribunal" means the Appellate Tribunal of the Authority established pursuant to this Act;

d) "Authority" means Naya Pakistan Housing and Development Authority established under this Act;

e) "certificate of title" includes a certificate of title with regard to the entitlement to an immovable property in terms of a lease, tenancy, licsense, allotment or allocation or any other mode of grant issued by the Registrar, in the manner and on such terms and conditions as may be prescribed;

f) "Chairman" means the Chairman of the Authority;

g) "enforcement inspector" means an employee of the Authority designated as enforcement inspector in accordance with section 38;

h) "Federal Land Bank" means the Federal Land Bank constituted under section l6;

i) "finance" shall have the same meaning as assigned there to in the Financial Institutions (Recovery of Finances) Ordinance, 2001 (XLVI of 200l);

j) "financial institution" shall have the same meaning as assigned there to in the Financial Institutions (Recovery ofFinances) Ordinance, 2001 (xLVl of200l );

k) "Fund" means Naya Pakistan Housing and Development Authority Fund created under this Act'

l) "house finance" means finance provided by financial institutions to individuals for the construction, refurbishment or purchase of residential houses, units or apartnents or for purchase of residential plots and construction thereon;

m) "management association" means a body, association, trust, body corporate, society or any other entity, registered or otherwise, established and mandated by the Authority, in the prescribed manner, for managing a scheme or part thereof;

n) "member" means a member ofthe Policy Board;

o) "Policy Board" means the Policy Board of the Authority constituted under this Act;

p) "prescribed" means prescribed by rules or regulations under thisAct;

q) "Patron" means the Patron of the Authority;

r) "Registrar" means a registrar appointed under Section-22 of this Act;

s) "Schedule" means a Schedule appended to this Act;

t) "scheme" means a scheme or schemes, plan, facility or project on profit or non-profit basis, comprising development or redevelopment of:

(i) new or existing cities, towns and islands, or
(ii) mix-use, housing, comrnercial and/or public amenity plots, buildings and/or units and related infrastructure, or
(iii) infrastructure and services including transportation systems and road networks, traffic management systems, healthcare facilities, educational facilities, recreational and cultural facilities, municipal and civic facilities and services, communications systems and facilities, utilities infrastructure and network (including water supply, drainage, sewerage, sanitation), or
(iv) enerry generation, procurement, transportation, transmission and distribution systems including for electric power (through any energy source) and gas (LNG/RLNG LPG etc.), or
(v) industrial estates and parks, and
(vi) all facilities, systems and works incidental or ancillary thereto, planned, made, undertaken and/or supervised and/or approved by the Authority under this Act.

u) "Secretary" means the Secretary of the Authority appointed in accordance with section 6 (7) of this Act;

v) "section" means a section of this Act; and

w) "specified area" includes an area in which the Authority may pursue a scheme;.

INCORPORATION AND FUNCTIONS

4. Authority

1. The Patron shall, by notification in the official Gazette, establish the Naya Pakistan Housing and Development Authority.

2. The Authority shall be a corporation having perpetual succession, a common seal and may sue or be sued in the name mentioned in sub-section (i) of this section 4.

3. The head office of the Authority shall be at Islamabad and the Authority may establish regional and/or such ofiices in such other parts of Pakistan as it may deem necessary.

5. Functions of the Authority

1. The Authority as may be presclibed, shall:-
a) identity immovable properties and projects suitable for the development of schemes;
b) recommend to the Federal Government to provide or procure immovable property or a project through any means permissible under law, including compulsory acquisition; purchase, lease or license through private agreement; donation by any private party or any state land or project by any govemment or other public authority, on such terms as may be mutually agreed between the Federal Government and the relevant transferor or provider;
c) cause studies, surveys, experiments or technical researches to be undertaken or contribute towards the cost of any such studies, surveys, experiments or technical researches, undertaken by any other entity;
d) if necessary, prepare and approve a master or site plan of a specified area containing zoning, spatial or town planning, infrastructure development, land use and building control regulations in consonance with the planning under the applicable building and town-planning dispensation;
e) undertake, design, approve and execute a scheme or schemes rn specified areas;
f) prescribe transparent criteria and procedure for registration, membership, possession, transfer and cancellation of immovable property in a scheme;
g) facilitate the low income segment for availing housing under this Act or any other specific programme or otherwise through the provision of loans or other facilities;
h) develop procedures for allocation, allotment, lease or auction, if any, of any type of immovable property, including the procedure to transact or exchange the actual property or allotment, allocation file thereof;
i) ensure maximum use of indigenous labour and construction material in the development of schemes;
j) formulate and, from time to time, vary the organogram,job descriptions, human resource policies and terms and conditions of employment of all employees of the Authority;
k) create or abolish posts and oversee the performance of is employees;
l) take disciplinary action against employees in the prescribed manner;
m) establish committees for assistance and advice in relation to the perfonnance of its functions and determine the membership and terms of reference of a committee;
n) develop and maintain public amenities and common areas in a scheme;
o) maintain updated record of immovable property including title leasehold rights, mortgage, easement license, tenancy and possession thereof;
p) puhlish geo-tagged title, leasehold rights, mortgage and other rights or interests in an immovable property on its website;
q) collect all levies, taxes, duties, fees and charges on the transfer, or possession of an immovable property, or any encumbrance there on, under any law after agreeing on an arrangement with the relevant agency;
r) exercise control over maintenance of buildings, their common areas and amenities in a scheme;
s) impose, levy and collect fines, fees, tolls, penalties, surcharges and charges as may be prescribed;
t) coordinate with similar agencies or bodies at the federal, provincial and local level for the achievement of the objectives of this Act;
u) to undertake schemes for the purposes of raising funds for various objects of the Act including funding for subsidies in low cost housing proiects and creation of employment and opportunities; and
v) perform any ancillary functions or a function under this Act

2. The Authority, as may be prescribed, may.-

a) raise funds through any means considered appropriate in the circumstances including through real estate investment trusts, bonds, sukuk and other forms of finances obtained on the basis of participation term cenificate (PTC), musharika ceftificates, term finance certificates (TFC) or any other financial or debt instrumenm or securities;

b) raise funds and obtain finance or loans from donor agencies, govermental bodies and financial institutions, including on the security of its Fund or any portion thereof;

c) provide or facilitate and support the provision of finance, including housing finance, for the achievement of the objectives of the Act;

d) generate electricity or obtain utilities in bulk or otherwise and carry out, maintain, arrange, manage and provide all facilities, services and utilities, including water, gas and sewerage in schemes;

e) manage and maintain utilities;

f) assign any function to a local government or local authority and vice versa on mutually agreed terms and conditions;

g) outsource any function through public private partnership or any other mode;

h) hire or utilize services for undertaking of schemes including design, technical evaluation and monitoring thereof;

i) provide and release receipts, guarantees, indemnity bonds, cheques and enter into contracts, deeds, instruments. arrangements, joint ventures and agreements with any person or grant concessions, for the working of the Authority, for the preparation, planning development execution, implementation and maintenance of schemes and for carrying out the purposes of this Act;

j) to set up agencies, companies, subsidiaries, trusts, societies, associations, joint-ventures (whether contractual or incorporated) or any other vehicles for the purposes of carrying out its objectives;

k) incur any expenditure and procure plant, machinery equipment, instruments and necessary materials;

l) plan, approve and execute mergers and amalgamations with other housing schemes or cooperative housing societies subject to the approval of the competent authorities of those housing schemes or housing societies for such merger or amalgamation;

m) impose, vary, and recover development charges and transfer fees in respect of any immovable property within any scheme;

n) lease, purchase, procure, sell, exchange, mortgage, rent out or otherwise dispose of or deal with any property under the management and control of the Authority;

o) cancel or re-plan any scheme or part thereof;

p) do all such acts, deeds and things that may be necessary or expedient for the purpose of proper preparation, planning, development, execution implementation, management and maintenance of schemes;

q) frame, amend or repeal service, conduct of business and other regulations necessary for carrying out the purposes ofthe Act;

r) make recommendations to the Patron for prescription of rules under this Act;

s) institute, commence, prosecute, defend, compromise, seftle any and all actions, disputes, suits and legal proceedings whether civil or crirninal before any court, tribunal, administrative body or authority; and

t) exercise any other power that is necessary for the performance of any function.

3. Except where any powers and functions ofthe Authority are specified in this Act to be exercised or perfonned by the Policy Board or the Patron, all the powers and discretions of the Authority shall be exercised, and the functions and duties of the Authority shall be perfonned. by the Chairman.

PATRON, POLICY BOARD AND ADMINISTRATION

6. Patron and Policy Board

1. The Prime Minister of the Islamic Republic of Pakistan shall be the Patron of the Authority, who shall review the performance of the Authority and may, from time to time, give to the Authority general policy directions to implement the same. subject to the terms of this Act.

2. The Patron shall, by notification in the official Gazette, constitute the Policy Board comprising not less than five and not more than eleven members (including the Chairman), for a term offive years. ln case ofany casual vacancy, a member (other than the Chairman) may, in the like manner, be nominated by the Patron for the remaining unexpired term ofthe outgoing member.

3. The Chaimran shall preside over the meetings ofthe Policy Board, however, in his absence, a member nominated by the Chairman may so preside.

4. A mermber, unless disqualified under this Act from holding office, may be re-appointed by the Patron in the above manner, provided that no individual shall serve for rnore than two consecutive tenns as a member.

5. Two thirds (2/3rd) of the members, including the Chairman [or his nominee under sub-section (3) of this Section 6] present in person or through video conference or teleconference, shall constitute the quorum for a meeting of the Policy Board. Subject to quorum, the decisions ofthe Policy Board shall be taken by majority of the members present and voting, provided that in the event of a tie, the Chairman [or his nominee under sub-section (3) of this Section 6 prcsiding at such meetings shall have a second and casting vote

6. The Policy Board shall meet at least once in every calendar quarter and a meeting ofthe Policy Board shall be held on such date and at such time and place, as the Chairman may determine.

7. The Chairman shall appoint a Secretary of the Authority on such terms and conditions as may be prescribed and who shall perform such functions as the Chairman may direct. The Secretary of the Authority shall also be the secrctary of the Policy Board and shall maintain or cause to be maintained, in the prescribed manner, the record ofeach meeting ofthe Policy Board including the minutes of the meetings as approved by the Chairman.

8. The Chairman may invite any person other than a member to aftend a meeting ofthe Policy Board for the purposes of advising or assisting the Policy Board on any agenda item taken up for consideration at such meeting.

9. A member may resign from his office at any time by writing under his hand addressed to the Patron and such resignation shall be effective from the date of its acceptance by the Patron.

10. No actor proceeding of the Policy Board shall be invalid merely by reason of any vacancy in or defect in the constitution of the Policy Board.

7. Disqualification of members

The Patron shall not nominate a person as a member, who:-

a) is or at any time, has been convicted of an offence involving moral turpitude;
b) is or, at any time, has been adjudicated as an insolvent;
c) is fcund to be a lunatic or of unsound mind or otherwise physically incapacitated; or
d) is in a situation of irreconcilable conflict of interest with the Authority

8. Removal of a member

1. The Patron may remove a menrber (including the Chairman) during the term of office, if such member is:-

a) disqualified from being a member; or
b) absent from three consecutive meetings of the Policy Board without leave of absence fron the Policy Board; or
c) found guilty of misconduct

2. The Patron shall not remove a member (including the Chairman) under sub-section ( I ) without a show cause notice, provision of an opportunity of hearing and recording of reasons in writing.

9. Functions of the Policy Board

1. Subject to sub-section (l) of section 6, the Policy Board shall have the responsibility of laying down the policies, plans and guidelines for carrying out the purposes of this Act

2. Without prejudice to the generality of the functions, mentioned in subsection (l ), the Policy Board shall-

a) establish and maintain strategic direction of the Authority;
b) oversee implementation of strategic objectives of the Authority;
c) monitor performance and review achievements of the Authority;
d) approve the audited accounts ofthe Authority;
e) arrange for, and oversee, the provision of funds for the Authority;
f) approve feasibility studies and proposals for development of scheme or schemes in specified areas;
g) take measures for capacity building ofthe Authority for performing its objectives under this Act and
h) transact such other business of the Authority as the Patron or the Chairman may place before it

10. Chairman and Acting Chairman

1. The Patron shall appoint a Chairman ofthe Authbrity on such terms and conditions as may be prescribed.

2. The Chairman shall be a person of sound integrity and competence, meeting one of the following:-

a) that he is a serving or retired officer of the Federal Govemment in the BPS-22 or equivalent; or
b) that he is a sering or retired officer of the Armed Forces, not below the rank ofa Lieutenant-General or equivalent;
Explanation: The serving ofticers from the civil bureaucracy and the Armed Forces will be eligible to be appointed as the Chairman on deputation or secondment basis, 4s per the applicable laws and rules; or
c) that he is an experienced professional or business person, not having Iess than thirty years of experience in his field and possesses:-
i) a Masters degree recognized by the Higher Education Commission of Pakistan, in the field of accounting, finance, business administration, management commerce, engineering, economics, planning, law; or
ii) the qualification of chartered accountancy, cost and management accountancy, barrister-at- law, solicitor.

3. The Chairman shall not be more than sixty two years of age on the date of first appointment as Chairman.

4. The Patron shall constitute an evaluation committee, comprising a least one Minister and at least two Secretaries, respectively, of the Federal Govemment for the purposes ofevaluating and recommending suitable candidates to the Patron for appointment as Chairman. For this purpose, the evaluation committee shall, on be half of the Patron, solicit applications from candidates through advertisement and recommend at least three names to the Patron. If the Patron is not satisfied with the recommendations of the evaluation committee, he may require further recommendations in the like manner.

5. The Chairman shall, subject to this Act, hold office for a term offive years and may be re-appointed by the Patron for an additional term of five yesrs.
Explanation: ln the event of rcappointsnent as Chairman, subsection (3) of this section, shall not apply

6. In case of death, resignation or removal of the Chairman the Patron shall, in his discretion; appoint an Acting Chairman to exercise the porvers and discretions and discharge the functions and duties ofthe Chairman under this Act, till a new Chairnran is appointed, which shall be done within three months ofthe occurrence of the vacancy.

7. Immediately upon the notification of establishment of the Authority under section 4 of this Act and pending appointment of the first Chairman, the Patron, in his discretion, may appoint an Acting Chairman to exercise the powers and discretions and discharge the functions and duties ofthe Chairman under this Act
Erplanation: An Acting Chairman, appointed under this Act, shall not be precluded from appointment as the permanent Chairman.

11. Functions end Powers of Chairman

The Chairman shall be the chief executive officer of the Authority responsible for the management, administration and operations ofthe Authority and, subject to the provisions of this Act, shall exercise: all powers and discretions and perform all functions and duties of the Authority under the Act.

12. Appointments of employees

1. The Authority may, in such manner and on such terms and conditions as may be prescribed by regulations, appoint, remove and regulate the working of, the employees, consultants and advisers of the Authority as may be necessary for purposes of this Act.

2. The Authority may, from time to time, requestthe Federal Govemment to arrange for the secondmentor deputation ofemployees of the Federal Govemment to the Authority for the purposes of this Act and the Federal Govemment may depute such employees, subject to their relevant service rules and regulations.

13. Delegation of functions

The Chairman may, through a written order, delegate any,powers, functions or duties of the Authority to any other employee of the Authority and may at his discretion, through a written order, revoke and rescind such delellation.

14. Conflict of interest

1. A member of the Policy Board other than the Chairman, shall not directly or indirectly receive any remuneration for his position as the member except the reasonable expenses incurred by the member in the performance of duties under this Act and such fee for attending the meetings as may be prescribed.

2. The pecuniary interests of the immediate family members or close personal or business associates of a member or an employee ofthe Authority shall also be considered to be the pecuniary interest ofthe member or employee.

3. A member or an employee of the Authority shall be in conflict of interest if the member or employee:-

a) is an employee or a consultant ofa business entity that has, or of a trade association ofbusiness entities that have, a substantial pecuniary interest in any ofthe functions ofthe Authority;
b) owns, controls or has directly or indirectly more than ten per cent equity in a business entity that has a substantial pecuniary interest in any of the functions ofthe Authority;
c) receives more than twenty-five percent of his individual income from a business entity that has a substantial pecuniary interest in any ofthe functions of the Authority; or
d) benefits either directly or indirectly financially or otherwise, from any other organization for being the member or employee of the Authority.

4. An employee oftheAuthority shall disclose a potential, real or perceived conflict of intercst as soon as he becomes aware of the potential conflict, to the Chairman. A member ofthe Policy Board (other than the Chairman) shall disclose a potential, real or perceived conflict of interest as soon as he becomes aware ofthe potential conflict, before the Policy Board or any of is committees seized ofthe matter. The Chairman shall disclose a potential, real or perceived conflict ofinterest as soon as he becomes aware of the potential conflict, to the Patron. Any uncertainty or doubt on part ofthe disclosing party with respect to the existence of conflict of interest shall be decided by the corresponding person or forum as applicable to whom disclosure is to be made in terms of this sub-section.

5. A member shall not take part in the proceedings of the Policy Board in which any question of conflict of interest ofthe member is on the agenda.

5. The disclosure of conflict of interest and the decision ofthe Chairman, Policy Board or the Patron, as the case may be, shall be specifically recorded in writing and form part ofthe records ofthe Authority.

15. Committees and sub-committees

1. The Chairman may constitute committees and subcommittees and assign specific tasks to the said committees' or sub-committees for efficient performance of the functions of the Authority. The committees or sub-committees, so constituted, shall perform their mandated tasks in the manner to be specified by the Chairman.

2. A committee or sub-committee may comprise one or more members of the Policy Board, employees of the Authority and/or such experts or persons as the Chairman may corrsider appropriate for the relevantmandate of the said committee or sub-committtee.

3. The committees or sub-committees, as applicable, shall submit their reports to the Chairman.

FEDERAL LAND BANK ETC.

16. Federal Land Bank

1. The Federal Government, on the recommendation of the Authority, shall constitute a Federal Land Bank and for which it may an ange or procure immovable property for the purposes ofa scheme through any means permissible under law, including provision of state land by any govemment or Public department, authority, agency or any corporation or entity falling there under, on such terms as may be mutually agreed between the Federal Govemmentand the relevant transferor or provider; compulsory acquisition; purchase, lease or license through private agreement or donation by any private party, in the prescribed manner.

2. For the purposes ofthe Federal Land Bank, the Federal Covemmenl Provincial Govcmments, Local Govemments and all other public departments, authorities, agencies and all corporations and entities falling thereunder shall cooperate with the Authority, to collect information of the immovable property owned or possessed by them and to furnish the same in the manner as prescribed.

3. The information collected under sub-section (2) ofthis section shall be compiled and rec.rrded by theAuthority in hardcopies and software containing re.qu isite details, maps and geo-graphical location ofthe immovable properties.

17. Vesting of Property

Upon arrangement or procurement of immovable properties in terms of section 16, the relevant immovable property shall, unless already so vested, vest in and belong to, the Federal Govemment. The Authority shall, for and on be half of the Federal Govemment, possess, control, manage and deal with all such immovable property for the purposes, and in accordance with the provisions, ofthrs Act and any rules or regulations prescribed here under.

18. Regulation of Transfen etc.

Dealings with immovdble property in a scheme including transfer, lease, license or encumbrance of such immovable property may be restricted and controlled in such manner and on such terms and conditions as may be prescribed under this Act.

DEVELOPMENT OF SCHEMES AND PROCUREMENTS ETC.

19. Development of schemes

The Authority shall prepare or cause to be prepared feasibility studies for the development of a scheme or schemes and determine the mode of development accordingly.

20. Procurement, Outsourcing and public private partnership etc.

1. The Authority may outsource any of its activities, including development works, through any mode including public private partnership.

2. Notwithstanding anything in the Public Private Partnership Authority Act, 2017 (Act No. VIII of 20l7), any rules and regulations made there under or any similar laws, the Authority may, by regulations, prescribe the manner, methods and procedurcs for undertaking public private partnerships under this Act and such prescribed conditions shall exclusively govern public private partnerships by the Authority.

3. Notwithstanding anything in the Public Procurement Regulatory Authority Ordinance 2002 (Ordinance No. XXII of 2002), any rules and regulations made there under or any similar laws, the Authority may, by regulations, prescribe the manner, methods and pmcedures for undertaking procurcments under this Act and such prescribed conditions shall exclusively govem procurement by the Audority.

21. Re-development scheme

1. The Authority may undertake re-development (including renewal, re-constnrction, or upgradation) of whole or a part of a scheme.

2. The provisions of this Act for development ofa scheme shall, with necessary changes, apply to re-development under sub-section (l).

REGISTER OF TITLES

22. Registrar

1. The Authority may appoint one or more Registrars of titles for a specified area or part thereof on the terms and conditions as may be prescribed in the regulations.

2. In the course of performance of his duties under this Act, the Registrar may exercise the powers of a civil court under the Code of Civil Proccdure, 1908 (as enforced in the Province or territory ofthe relevant Registrar) for summoning any person, document, enforcing attendance of any person or compulsory production of any document or taking statement on oath.

23. Record of titles

1. The Authority may. in the prescribed manner, maintain the records of titles itself or outsource the same in the specified; area or part thereof, to a central depository company or any other similar entity.

2. The Authority may link the record of titles in the specified area with the record ofthe National Database and Registration Authority on rnutually agreed terms and conditions.

3. The Authority shall maintain computerized record of titles.which may be exhibited on the website ofthe Authority, in the prescribed manner.

24. Registration of Properties

1. Notwithstanding anything contained in any other law, the Authority, as prescribed, may enter into arrangements to effect registration and transfer of properties and maintain records in relation to any property or part thereoffalling in a scheme, with Provincial Governments, and where applicable, Local Govemments or other bodies.

2. The certificate of title issued by the Registrar shall be deemed to constitute a title ,document of the relevant immovable property.

3. The Registrar shall maintain, accurately and completely the current facts about each immovable property including certiticate oftitle, leasehold rights, mortgage, an easement, a right of occupation or any other right or interest which shall beavailablt online on the rvebsite ofthe Authority with geo-tagged system, in such manner as ,may be prescribed.

4. The Registrar may issue certified copies of certificates of title in the prescribed manner.

HOUSE FINANCE AND MORTGAGES

25. House finance for a scheme

1. Where house finance has been provided by a financial institution for immovable property in a scheme pursuant to an arrangement between the Authority and the financial institution, all disputes between the financial instir ution and the relevant borrowes in the scheme shall, notwithstanding anything contained in any other law, be adjudicated upon by the Adjudicator. The process and requirements for lodging and adjudication of a claim before the Adjudicator shall be prescribed through regulations. .

2. Any party aggrieved of the final judgment of the Adjudicator under sub-section (l) may, within thirty days of the final judgment file an appeal before the Appellate Tribunal. The process and requirements for lodging and adjudication of an appeal before the Appellate Tribunal shall be prcscribed through regulations.

3. An appeal to the Supreme Court from a final judgment or order of the Appellate Tribunal shall lie only, if the Supreme Court grants leave to appeal.

26. Process for Mortgage and Auction

Where house finance for immovable property in a scheme is or is proposed to be secured through mortgage of such immovable property, the manner, method and procedure for creation and registration of such mortgage, determination of liability, valuation of mortgaged property, fixation of reserve price, auction, bidding and sale of mortgaged immovable property shall be as prescribed.

COMMON PROPERTY

27. Common property

1. The common property/common areas in a scheme (including common areas in buildings) shall remain vested in the Federal Government. The Authoriry- shall control, manage and deal with all such common property common areas for and on be half of the Federal Govemment for the purposes of this Act.

2. The Authority may delegate and regulate the management of the common property/common areas in a scheme in the prescribed manner. Without prejudice to the generality ofthe foregoing, such prescription may provide for the establishment (including incorporation), composition, regulation, operations, powers and functions and dissolution of management associations by whatever name called.

TAXES, FEES AND CHARGES

28. Authority to be exempt from taxation

1. Notwithstanding anything contained in any other law, for a period of five years starting from the date of notification under sub-section (l) of section 4, the Authority shall be exempt from income tax.

2. The Federal Govemment through a notification in the official Gazette may extend the exemption mentioned in subsection (l ) of this section to such extent and on such terms and conditions, as it may deem fit.

29. Authority to collect property tax

The Authority or, if authorized by the Authority, management association shall collect property tax if any, and the Authority shall enter into an arrangement with the concerned government for sharing of proceeds of the property tax collected from a scheme.

30. Aurhority to levy fee and charges

The Authority shall fix fees or charges for rendering of any service in a scheme including registration fee. water rate, sanitation fee, solid waste management fee, development or re-development charge and maintenance fee or any other fees, dues and charges.

31. Addlitional charge or surcharge

lf a person fails to pay a tax, fee or charge to the Authority, the Authority may in the prescribed manner, but subject to the terms of arrangement with the concerned govemment, levy and collect additional charge and surcharge for non-payment of dues within the specified time.

OFFENCES, ENFORCEMENT AND ADJUDICATION

32. Penalty

1. If a person contravenes any provision of this Act, or any rules or regulations made under this Act, he shall, if no other penalty is provided for such contravrention, be punishable with imprisonment for a term which may extend to one year or with fine which may extend to two hundred thousand rupees or with both

2. The magistrate competent to try an offence under sub-section ([) may try the offence in a summary manner in accordance with the provisions of sections 260 to 265 of the Code of Criminal Procedure. 1898 (V of 1898).

33. Offences and cognizance

1. lf a person commits an offence specified in-

a) Part-A ofthe Schedule, such person shall be liable to imprisonment for a term which may extend to seven years or fine which may extend to five hundred thousand rupees or with both and where an accused was directed by the Authority for immediate discontinuance of the offence, the court may impose a further fine which may extend to fifty thousand rupees for every day for the period the accused has persistcd in the offence from the date of its commission; and
b) Part-B of Second Schedule, he shall be liable to imprisonment for a term which may extend to three years or fine which may extend to one hundred thousand rupees or with both and where an accused was directed by the Authority for immediate discontinuance of the offence, the court may impose a further fine which may extend to ten thousand rupees for every day for the period the accused has persisted in the offence from lhe date of its commission.

2. An offence punishable under sub-section ( I ) shall be cognizable on a complaint in writing ofan employee authorized by the Authority to the officer incharge of the police station.

34. Offences to be cognizable and bailable

Notwithstanding anything contained in the Code ofCriminal Procedure, I 898 (Act V of I 898), offences under thisAct shall be bailable and cognizable by the magistrate first class on the complaint ofan employee authorized by theAuthority.

35. Offences by companies

1. Where an offence under this Act has been cornmitted by a company, every person who at the time of commission of offence was in charge of and was responsible for the conduct of its activities shall be deemed to be guilty of the offence and shall be liable to be proceeded against under this Act.

2. Nothing contained in this section shall render any such person liable if it is proved that the offence was committed without the person's knowledge or that such person exercised due care to prevent the commission of the offence.

36. Administrative p€nalties

1. An Adjudicator may, in the prescribed manner, issue directions to any person for compliance with any provision of this Act, the rules or regulations within the time and in the manner specified in such directions.

2. If a person fails to comply with any direction of the Adjudicator within such time as may be specified in such direction or where violation is declared as grave under the regulations, the Adjudicator may pass one or more of the following orden, namely:-

a) direct the delinquent person to pay a fine as administrative penalty which may extend to one hundred thousand Rupees and in case the failure continues, with an additional fine which may extend to five thousand Rupees for every day during which such failure continues after the direction to pay fine for the first such failure is passed;

b) direct initiation of prosecution against the delinquent person for the offence under section 33;

c) seal (for a specified or unspecified period) the immovable property where violation of this Act, rules or regulations has taken place;

d) direct the relevant employee ofthe Authority, a civic or utility agency to stop or discontinue the provision of municipal or utility services to the immovable property in occupation of the delinquent person till such time as the violation continues;

e) direct removal or construction ofany structure by the Authority

f) direct the enforcement inspector to dispossess an unauthorized occupant from an immovable property and hand over peaceful poss,ession ofthe propertyto the person entitled to the possession of the property; and

g) direct cancellation of lease or allotment ofthe delinquent person and resumption of possession ofthe immovable property by the Authority.

3. The Adjudicator shall take cognizance of a case on the report of an enforcement inspector or an employee authorized by the Authority which shall contain documentary evidence of the violation and identification of the delinquent person.

4. The Adjudicator shall not pass any final direction or order without issuing a show-cause notice in writing and affording an opportunity of hearing to the delinquent person, in the prescribed manner

37. Administrative penalty and offence

1. A person, on whom an administrative penalty is imposed under section 36, shall not be prosecuted for an offence in respect of the same incident that gave rise to imposition of the administrative penalty unless th€ Adjudicator directs prosecution of the person.

2. A person charged with an offence may also be subject to an administative penalty in respect of the same incident that gave rise to the charge of the offence.

38. Enforcement inspectors

1. The Authority shall devise and implement enforcement plans regarding the observance of this Act, rules and regulations.

2. Thr Authority shall designate enforcement inspectors for the implementation of the enforcement plans in such manner as may be prescribed under the regulations.

3. The enforcement inspectors shall exercise such powers, in such manner and to such extent as is provided in this Act or as may be prescribed in the rules or reguIations.

4. The Authority may, for discharge of its functions under this Act, seek assistance and support from law enforcement agencies and other public bodies who shall provide all such assistance and support.

39. Power to enter

1. Subject to any rules or regulations, an enforcement inspector may, whenever it is necessary for purposes of this Act and at all reasonable times, enter upon any immovable property and :-

a) make inspection, survey, measurement, valuation or enquiry;
b) take levels;
c) dig or bore into sub-soil;
d) set out boundaries and intended lines of work;
e) mark such levels, boundaries and lines by placing marks and cuning trenches;
f) take electronic or other evidence; and
g) do such other acts or things as may be prescribed

2. An enforcement inspector shall not enter any immovable property excep!

a) with the consent ofthe occupant and with prior written notice specifying date and time of inspection; or
b) when directed by a court or Adjudicator or
c) without notice to prevent any disaster in an emergency.

40. Ejectment of unauthorized occupants

1. Subject to an opportunity of hearing the Chairman, enforcement inspector or any other authorized officer of the Authority may summarily eject any person in unauthorized occupation ofany immovable property under the management or conhol ofthe Authority and may for such ejectment use such force as may be necessary.

2. Subject to an opportunity of hearing the Chairman enforcement inspector or any other authorized officer of the Authority, on his own motion or on the application of the lawful occupier of an immovable property, summarily eject any person in unauthorized occupation of such immovable property in a scheme and may, for such ejectment, use such force as may be necessary.

3. Nothing contained in sub-sections (l) and.(2) shall prohibit the Chairman, enforcement inspector or any other authorized officer of the Authority to proceed against such person on commission of an ofence, as provided in the Act.

41. Adjudicator

1. The Authority shall appoint one or more Adjudicators for a specified area and if the Authority appoints more than one Adjudicators for a specified area- it shall specify jurisdiction of each Adjudicator. The qualifications and tenns and conditions of appointment as Adjudicator shall be prescribed through regulations.

2. The Adjudicator shall hear and decide a case refened to him by the Chairman, Registrar or an enforcement inspector under this Act, rules or regulations.

42. Inquiry and decision

1. The Adjudicator may

a) conduct an inquiry in any case;
b) while inquiring into a case, exercise powers of a civil court under the Code of Civil Procedure 1908 (Act V of l90E) in respect of the following matters:
i summon and enforce attendance of a person, compel a person to give oral or written evidence on oath and to produce a document or any other material;
ii receive evidence on affidavit;
iii requisition information from any office; and
iv issue summons for witnesses or documents.

2. The Adjudicator shall execute his decisions as if he is a civil court under the Code of Civil Procedure, 1908 (Act V of I908) or may direct an enforcement insjector to execute the decision in the manner mentioned in the direction.

3. During the course of any proceedings before him, and before passing a final order the,adjudicator may pass such interlocutory orders as he may consider appropriate in the circumstances.

43. Review

lf no appeal is filed under section 45 against any decision of the Adjudicatcr, the Adjudicator may, at any time, review his decision to correct any error or on proof of any other sufficient cause justifying review of the decision

44. Rercovery of dues

1. If a person fails to pay any amount due to the Authority or a mortgage or fails to repay house finance in accordance with Section 25, the Adjudicator shall, on a reference from an authorized employee of the Authority or the financial institution, as applicable, recover the amount due from the person or mortgag or as arrears of land revenue under the Land Revenue Act, 1967 (XVll of 1967).

2. In exercise of porvers under this section, the Adjudicator shall exercise any power of collector under the Land Revenue Act, 1967 (XVII of 1967).

45. Appeals

1. A person aggrieved from any final direction, decision or order ofan Adjudicator may within thirty days from the date of communication of the same, file an appeal before an Appellate Tribunal of the Authority.

2. The Appellate Tribunal shall be constituted and shall discharge is functions in the prescribed manner.

3. An appeal to the Supreme Court from a final judgment or order ofthe Appellate Tribunal shall lie only if the Supreme Court grants leave to appeal.

46. Bar of jurisdiction

Notwithstanding anything provided in any other law for the time being in force, but save as expressly provided in this Act-

a) no court or other authority whatsoever shall have jurisdiction to entertain, or to adjudicate upon, any mafter which the Authority, the Chainnan, the Registrar or a Adjudicator, enforcement inspector or any other person is empowered by or under this Act, or the rules or regulations framed thereunder, to dispose ofor to determine;

b) the validity of anything done or an order passed by the Authority, the Chairman, the Registrar or a Adjudicator, enforcembnt inspector or any other person empowered by or under this Act, or the rules or regulations framed there under, shall not be called in question in any manner whatever before or by any court or other authority whatsoever; and

c) no court or other authority , whatsoever shall be competent to grant any injunction or pass any other order in relation to any proceedings' under this Act or any rules or regulations framed there under before the Authority, the Chairman, the Registrar or a Adjudicator, enforcement inspector or any other person empowered by or under this Act, or the rules or regulations framed thereunder.

FINANCIAL PROVISIONS

47. Fund

1. The Authority shall establish a fund to be known as Naya Pakistan Housing and Development Authority Fund to be administered and controlled by the Authority.

2. The Fund shall consist of:

a) funds, loans or grants provided by the Federal Government or a Provincial Govemment;

b) grants and loans negotiated and raised or otherwise obtained by the Aurhority:

c) fee charges, rentals, tolls, fines and other moneys received or collected by the Authority;

d) income from the lease or sale of the property;

e) funds from, bonds, sukuk and other forms of finances obtained on the basis of participation term cenificate (PLC), musharika certificates, term finance certificates (TFC) or any other financial or debt instruments or securities issued by the authority; and

f) all other sums received by the authority

3. The fine imposed or the fee charged under this Act, the rules or regulations shall. on receipt or recovery, be deposited in and shall form part of Naya Pakistan Housing and Development Authority Fund.

4. The Authority shall meet all its expenses from the Fund and shall exercise prudence in is expenditures from the Fund.

48. Bank accounts

The Authority may open and maintain its bank accounts at such scheduled banks as may be prescribed and until so prescribed, as the Chairman rnay determine.

49. Budget and accounts

1. The Chairman shall cause to be prepared the budget of the Authority for each financial year commencing on first day ofJuly ofa year and enrling on thirtieth day ofJune ofthe succeeding year.

2. The Chairman shall approve the budget atleast forty five days priorty the commencement of a financial year.

3. The accounts of the Authority shall be maintained in such manner as may be prescribed.

50. Audit

1. The Chairman shall appoint a firm of chartered accountants, which is placed in category 'A by State Bank of Pakistan, for the annual audit ofthe accounts ofthe Authority.

2. The auditors appointed under sub-section (2) shall submit the audit report to the Chairman and the Chairman shall cause the same to be placed before the Policy Board for approval.

MISCELLANEOUS

51. Duty to assist the Authority

1. The Authority may in the performance of its functions seek assistance of any office, authority or agency working under the Federal Government, a Provincial Government or a local govemment.

2. The oflice, authority or agency shall comply with the direction of the Authority under sub'section ( l ) unless, for reasons to be recorded in writing and within thirty days of the direction, an officer not below the rank of head of the office, authority or agency requests the Authority to place the matter before the Chairman whose decision, on such matter, shall be final.

52. Authentication of instruments of Authority

All orders, decisions and other instruments of the Authority shall be authenticated by the signature ofthe Chairman or any other employee of the Authority authorized by the Chairman.

53. Annual report

1. The Authority shall, within three months of the end ofa financial year, submit to the Patron art annual report.

2. The Annual report under sub-section (l) shall consist of.-

a) the statement of accounts and audit reports of the Authority;

b) a comprehensive statement of the work and activities of the Authority during the preceding financial year and its proposed projects; and

c) such other matters as may be prescribed or as the Authority may consider appropriate.

54. Public servents

The Chairman, a member, Adjudicator, enforcement inspectoc Registrar and an employee, expert or consultant of the Authority shall when acting or purporting to act in pursuance of any ofthe provisions of this Act, be demed to be public servants within the meaning of section 2l of the Pakistan Penal Code. I 860 (Act XLV of I E60).

55. Immunity

No suit, prosecution or any other legal proceedings shall lie against the Chairman, a member, Adjudicator, enforcement inspector, Registar or an employee, expert or consultant oftheAuthority, in respect of anything done or intended to be done in good faith under this Act.

56. Act to prevail over other laws

1. In the event of any conflict or inconsistency between the provisions of this Act and the pmvisions of any other law, the provisions of this Act shall, prevail to the extent of such conflict or inconsistency

2. lf an instrument is required to be registered under this Act as also under any other law, the instrument shall only be registered under this Act

57. Rules

The Patron may on the recornmendation of the Authority and by notification in the oflicial Gazette, make rules for carrying out the purposes of this Act.

58. Rugulations

Subject to this Act and any rules prescribed here under, the Authority may, by notification in the official Gazette and publication on its website, make regulations, to give effect to the provisions of this Act.

59. Removal of Dillicultie

lf any difficulty arises in giving effect to any provision of this Act, the Authority may, at any time, make such order, not inconsistent with provisions of this Act and any rules made here under, as may appear to it to be necessary for the purpose of removing the difficulty.

60. Savings

Notwithstanding the provisions of this Act all actions taken and decisions made by the Covemment for providing housing and real estate development and other activities related to land and construction through the Naya Pakistan Housing and Development Authority till the enactment of this Act shall continue and be deemed to have been validity made under the provisions of this Act.