The fundamental aim of the Code of Conduct for the
CREDAI – PUNE METRO (Formerly PBAP), is to maintain the
honor and dignity of Promoters and Builders in general,
to secure a spirit of friendly co-operation between the
Promoters and Builders and their customers in the
promotion of highest standard of Promotion, Development,
and Construction activities and to establish honorable
and fair dealing of the Promoters and Builders with
their customers; and to establish a spirit of
brotherhood in the Association of Promoters and Builders
itself and to try and ensure that Promoters and Builders
discharge their responsibilities to the community in
For the aforesaid objects the members of the CREDAI –
PUNE METRO (Formerly PBAP) desire to adopt the following
norms of conduct, both in letter and spirit. However,
specific mention of the following norms of conduct/rules
shall not be construed as conferring upon the members
and / or the customers and / or the flat purchasers any
legal right enabling them to enforce the same in Court
of Law or otherwise.
If any member is found to violate the code suitable
action can be taken against him by the Association even
to the extent of his membership being discontinued;
after a detailed enquiry by a select committee which
recommendation if endorsed by the Managing Committee
would lead to the termination of membership of the
Any such action taken by the Managing Committee shall be
put into effect 30 days after communicating the decision
to the member in writing by Registered Post at his
address as per records of the Association. The member
can appeal the decision of the Managing Committee to the
General Body whose decision shall be final and binding.
This appeal must be lodged within 30 days of the date of
communication by the Managing Committee failing which
the decision communicated shall be final and binding.
Member of CREDAI Pune Metro (formerly PBAP) hereby
undertake and agree to abide with and honour this Code
of Conduct as approved by the General Body and as
amended and agreed from time to time.
The property under development should have a marketable
title and the Developer shall enclose a copy of the
“Title Certificate” from a Solicitor/Advocate showing
his rights, along with the Agreement for sale.
2] INSPECTION OF SANCTIONS
All sanctions from the sanctioning authorities like
approved plans and commencement certificates, N. A.
permission, exemption order under U.L.C. Act (if
required) etc., should be made available for perusal of
3] BOOKING OF PREMISES
The Developer should commence booking/sale of
flats/premises only after obtaining sanction of plans
and commencement certificate from the concerned
Municipal Authority/Planning Body and sanction/clearance
under the Urban Land (Ceiling & Regulation) Act, 1976;
if required, N.A. order, except in cases where finance
is to be raised by mutual agreement.
4] AGREEMENT OF SALE
The Developer should enter into a proper agreement as
per the relevant Acts immediately on receipt of Earnest
Money from the purchasers of flats/premises.
Payments receivable under the Agreement for sale should
be scheduled according to the progress of the work and
as per the provisions of the relevant Acts or as may be
mutually agreed between the Purchaser and Developer.
The Developer should not enhance the price of the
flats/premises once the agreement for sale is executed –
or any account whatsoever; except for additional
Government levies/taxes/court orders or in terms of the
relevant Acts or under force major conditions. However,
if there is a specific understanding between the
Developer and Purchaser, escalation can be charged on
mutually agreed formulae.
7] CONSTRUCTION OF BUILDING
The Developer should construct the building only as per
the rules and regulations of the Authority and should
not construct any unauthorized structures. He/it should
not indulge in any illegal business activity.
8] QUALLITY OF CONSTRUCTION
The Developer must ensure good quality materials and
proper workmanship. Specifications as per agreements
should be adhered to and statutory specifications of the
Local Planning Authority should be complied with. Proper
technical supervision on site should be ensured through
qualified and experienced technical personnel in
addition to usual qualified structural engineers and
9] CARPET AREA
The carpet area of the flats/premises should be clearly
and unambiguously defined in the agreement.
10] DESCRIPTION OF AMENITIES
All amenities and common facilities should be clearly
mentioned in the agreement for sale and same should be
11] INFRASTRUCTURAL REQUIREMENTS
All conditions with regard to infrastructures as set out
in the approval of the layout plan by Municipal
Authority or Planning Authority should be fully complied
with by the Developer. The building and its premises
should be left in a clean and habitable condition.
12] TREE PLANTATION
Maximum tree plantation should be done near sites on the
basis of at least one tree per 100 sq. mtrs., except
where it is not possible in congested areas.
13] LABOUR WELFARE
Members are encouraged at large sites (more than 4,000
sq. mtrs.) to have crèches and educational facilities
for the children of the labour, be provided along with
other possible labour welfare activities, such as
periodical medical check-ups, insurance, etc.
14] REFUND OF MONEY
In case the completion of the building is delayed beyond
the period stipulated under the agreement for sale with
the flat purchaser, the Developer should return all the
moneys received by him from the flat purchaser, along
with interest as specified in the agreement under the
Maharashtra Ownership Flats Act, if so demanded by the
The Developer should ensure timely completion, physical
possession, as committed to buyer. It shall be builder’s
responsibility to obtain completion/occupation
16] DEFECT LIABILITY PERIOD
During the Defect Liability Period, the Developer should
attend to bonafide complaints expeditiously.
17] SOCIETY ACCOUNTS/OTHER DEPOSITS SUCH AS STAMP
The Developer shall maintain separate account in respect
of sums received by him from the flat purchaser as
Advance or Deposit, sums received on Account of the
capital for promotion of a Co-operative Housing
Society/Apartment Association or a Company or towards
the outgoings, legal charges, etc. and shall utilize the
said amounts only for the purpose for which they have
been received. Such accounts should be given to the
Society/Association/Company not later than 3 months from
handing over the charge of the building to such
Society/Association/Company, and / or within a period of
3 months from the date of final conveyance, whichever is
18] FORMATION OF A SOCIETY OR A BODY CORPORATE
The Developer should take steps for registration of
Co-operative Housing Society or any other body corporate
as may be necessary.
19] TRANSFER CHARGES
The Developer should not charge more than 2% of the
purchase price for transferring the rights of the Flat
Purchaser under an agreement for sale. Any such consent
by the Developer to the flat purchaser for transferring
his rights under agreement of sale should not be
unreasonably withheld, provided the flat purchaser pays,
and/or is ready and willing to pay full amount of
consideration under the agreement for sale together with
transfer fees as aforesaid and other dues payable.
20] TRANSFER OF TITLE
The Developer should not inordinately delay the
execution of the Conveyance or any other similar
instrument in favour of the common organization of the
flat holder, after the development and sale of entire
scheme and after all amounts payable by the purchasers
are paid to the Developer.
21] HANDING OVER OF ORIGINAL CERTIFIED COPIES OF
TITLE DEEDS, SERVICE DRAWINGS, ETC.
The Developer should at the time of transfer hand over
to the Society/Apartment / Company all original title
deeds and related documents as well as all plans of the
buildings including all external service drawings and
22] MEDIATION IN DISPUTES
In case there be any dispute of any member of the
Association with any person or flat holder or Government
or Semi Government Body or Authority or Local Authority,
and if the Association is asked to intervene, the
Managing Committee of the Association will consider such
request and decide in its absolute discretion whether to
intervene or not depending upon the merits of the case
and wherever possible the Association will make efforts
to resolve the said dispute by amicable settlement or
otherwise on merits of the case. However, any such
mediation, even if it be with the consent/concurrence of
both the disputing parties, shall not be construed as
Arbitration under the Indian Arbitration Act.
23] MEMBER BOUND BY MANAGING COMMITTEE/GENERAL
Any decision resolution pertaining to the Code of
Conduct, that is taken or passed in the General Body
Meeting or Managing Committee Meeting, is binding on the
member of the Association, even if he has not attended
the meeting provided that the item was on the agenda
that was circulated.