THE
JHARKHAND GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
7 Agrhayan, 1941(S)
Ranchi, Thursday, 28th November, 2019
Urban Development & Housing Department
--------------
NOTIFICATION
25 October, 2019
Jharkhand Smart Cities Land and Other Fixed Assets (Utilisation, Allotment
and Disposal) Rules, 2019
Memo No.01/Smart City/Bhu.Aa.)/2019Na.Vi.Aa-5343-- In exercise of
powers conferred under Chapter 46, section 590 of Jharkhand Municipal Act, 2011
(Act 07 of 2012), the State Government of Jharkhand, hereby makes the following
rules to carry out the purposes of the said Act with respect to Jharkhand
Smart Cities Land and Other Fixed Assets (Utilisation, Allotment and Disposal)
Rules, 2019.
CHAPTER I: GENERAL
1. Preamble
Whereas, the Government of Jharkhand has, in association with the Government of
India, decided to engage in the development of Ranchi, the capital city of Jharkhand,
under the Smart Cities Mission (“the Mission”), a scheme sponsored by the
Government of India for promoting sustainable urban development, utilising
information services and technology to achieve its objectives;
And whereas, the proposed development of the city of Ranchi under the Mission
entails the specific development of a plot of land, hereinafter referred to as “Area
Based Development (ABD)”;
And further whereas, the Government of Jharkhand, in line with the specific
stipulations set forth by the Government of India has constituted a Special Purpose
Vehicle (SPV), namely the Ranchi Smart City Corporation Limited (“RSCCL”) for
implementing the projects and other initiatives stipulated under the Mission;
No. 985
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And further whereas, the Government of Jharkhand has, vide its resolution
SUDA/SCM/SPV_RSCCL-13/2016-4552dated17-08-2016, assigned the power(s)
vested with the Ranchi Municipal Corporation (“the Municipal Corporation”) to
RSCCL with regards to discharging the obligations towards implementing the
projects and other initiatives set forth under the Mission;
And whereas, these rules have been adequately scrutinised and objections/suggestions received
from the public, are incorporated in line with the provisions of section 590 of the Jharkhand
Municipal Act, 2011 and approved by the Government of Jharkhand;
Now, in view of these presents; these rules are prepared under section 590 and in pursuance to the
provisions of section 11 of the Jharkhand Municipal Act, 2011 with respect to utilisation, allotment
and disposal of land and other fixed assets vested by the Government of Jharkhand to RSCCL.
2. Short Title, Objectives, Extent & Commencement
2.1. These rules shall be called as Jharkhand Smart Cities Land and Other Fixed Assets
(Utilisation, Allotment and Disposal) Rules, 2019.
2.2. These rules are made with this objective that:
2.2.1 Land governed by these rules is optimally utilised for the purposes incidental to or
directly responsible for meeting the objectives of the Mission;
2.2.2 Considerations levied and received for use of such land(s) and/or buildings are
commensurate with fair value, and still not impede the conduct or viability of
businesses;
2.2.3 Stipulation(s) covered under any other Laws and Acts prevalent and applicable to
RSCCL are adequately complied with;
2.2.4 The utilisation of land adheres to the principles of environmental sustainability;
2.3. These rules shall govern the allocation, utilisation and disposal of land and other fixed
assets such as buildings for the purposes of implementing the projects and other
initiatives set forth under the Mission. It shall apply to all land(s) and/or fixed assets
placed at the disposal of RSCCL.
2.4. It shall come into effect on the date of notification in the official gazette of the State of
Jharkhand and shall supersede all earlier Government/Board Resolutions, orders or
Regulations, if any with regard to the Allotment, Utilisation and Disposal of Land and
Other Fixed Assets.
3. Definitions
Unless repugnant to the context, or explained by any other way, the following terms shall imply,
for the purposes of these rules, as follows:
3.1. “Act” means the Jharkhand Municipal Act, 2011including all its amendments as maybe
notified by the State Government from time to time;
3.2. “Agency” means a business or organization providing a particular service on behalf of
another business, person, or group;
3.3. “Allotment” means the transfer of ownership and/or the grant of rights of usage of any
property by RSCCL to allottee for any purpose(s) as may be specified by RSCCL, or as may
be determined jointly between such person and RSCCL in accordance with the applicable
laws in force;
3.4. “Allottee” means a person:
(i) in whose name an allotment has been made by RSCCL;
(ii) to whom the ownership rights and/or the rights associated with the use of such land
and/or any other fixed asset(s) for a specified purpose has been accorded by
RSCCL;
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3.5. “Annual Lease Rent” means the consideration levied by RSCCL from an allottee for the
rights associated with the use of such land and/or any other fixed asset(s) for a specified
purpose as agreed between the allottee and RSCCL, but excluding statutory levies as may
be applicable under prevailing law;
3.6. “Apartment Ownership Act” means the Jharkhand Apartment (Regulation & Ownership)
Act, 2011including all amendments as maybe notified by the Government from time to
time;
3.7. "Appropriate Government" means the Government of India or Government of Jharkhand,
as the case maybe;
3.8. “Auction Committee” means the committee constituted for the purpose of setting up pre-
qualification criteria for applicants and conduct of auction for land and other fixed assets
under these rules;
3.9. “Base Price” means the price which is fixed by RSCCL for the purpose of this rule;
3.10. “Board” means Board of Directors of RSCCL;
3.11. “Commercial use” shall mean the use of any land and/or building for purposes defined in
section 13.1.3. of this rule;
3.12. “Companies Act” means the Companies Act,1956/2013including all its amendments made
from time to time as may be notified by the Government from time to time;
3.13. "Competent Authority" means an Authority notified by the Government of Jharkhand
and/or Government of India;
3.14. “Compoundable Violation” means a violation which can be compounded after
compensating RSCCL, and/or the concerned Public Authority;
3.15. "External Development Works" include roads and road systems, landscaping, water
supply, sewerage and drainage systems, electricity supply, transformer, electric sub-
stations, solid waste management system and disposal or any other infrastructure works
which may have to be executed by RSCCL for a project, as may be provided under the local
laws or as required;
3.16. “FAR”-Floor Area Ratio as defined in Jharkhand Building Bye laws 2016 (JBBL);
3.17. “Freehold Sale” means the sale in which property and title is transferred to the allottee
upon successful payment of full Offer Price after allotment in stipulated time period;
3.18. “GRIHA”, refers to Green Rating for Integrated Habitat Assessment including all its
amendments as may be notified from time to time;
3.19. “Institutional Use” shall mean the use of any land and/or building for purposes defined in
section 13.1.1. of this rule;
3.20. “JBBL” refers to Jharkhand Building Bye Laws, 2016 including all its amendments as
notified by the Government from time to time;
3.21. “Joint Development Agreement” means an arrangement between RSCCL and one or more
person(s), who have agreed to jointly develop or re-develop or retrofit any plot(s)or
building(s);
3.22. “Land” means the land or any plot thereof which is acquired by, vested in, or belonging to
the RSCCL including the land allotted under these Rules;
3.23. “LARR Act” means The Right to Fair Compensation and Transparency in Land Acquisition,
Rehabilitation & Resettlement Act, 2013, including all its amendments as notified by the
Government from time to time;
3.24. “Lease” shall have the meanings assigned to them under section 105 of the Transfer of
Property Act, 1982;
3.25. “Leasehold basis” means the right to hold or use property for a fixed period of time at a
given price, without transfer of ownership, on the basis of a lease contract,as indicated in
section 10 of this rule;
3.26. “Lessee” shall have the meanings assigned to them under section 105 of the Transfer of
Property Act, 1982;
3.27. “Market Price” shall have the same meaning as “Market Price” in section 26 of the LARR
Act;
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3.28. “Mixed Use” shall mean the use of any land and/or building for purposes defined in
section 13.1.5. of this rule;
3.29. “Municipal Corporation” means the Municipal Corporation of Ranchi, established under
the Jharkhand Municipal Act, 2011;
3.30. “Non-Compoundable Violation” means a violation which cannot be compounded;
3.31. “Offer Price” means the final price payable by the allottee to RSCCL;
3.32. “Payment against demand letter” shall mean any consideration, which may be levied by
RSCCL on any allottee for any asset where such levy has been agreed to in the terms of
allotment, prior to granting possession of land and/or building(s) or such other assets to
the allottee;
3.33. “Person” for the purpose of these rules includes, —
(i) an Individual;
(ii) a Hindu Undivided Family;
(iii) a Company as defined under Companies Act, 1956/2013;
(iv) a Firm under the Indian Partnership Act, 1932 or the Limited Liability
Partnership Act, 2008, as the case may be;
(v) a Competent Authority;
(vi) a Co-operative Society registered under any law relating to co-operative
societies;
(vii) a Trust whether public or private;
(viii) any such other entity as the Appropriate Government may, by notification, specify in
this behalf;
3.34. “Plot” means parcel of land set apart for development and/or forming part of the
sanctioned master plan or a scheme prepared by RSCCL and includes the construction
there on;
3.35. “Promoter” or “Developer” shall have the same meaning as “promoter” as per section 2 of
Real Estate (Regulation and Development) Act, 2016;
3.36. “Property” shall have the same meaning as the term “immovable property” as defined in
section 3 of General Clauses Act, 1897;
3.37.
“Property Tax” is the tax applied directly on the property as per rules notified by the
State Government from time to time and shall be payable to RSCCL by the property
owner;
3.38. “RERA” means The Real Estate (Regulation & Development) Act, 2016, including all its
amendments as notified by the Government from time to time;
3.39. “Reserve Price” means the minimum price, below which land shall not be allotted to any
allottee by RSCCL;
3.40. “Residential Use” shall mean the use of any land and/or building for purposes defined in
section 13.1.2. of this rule;
3.41. “RSCCL” means Ranchi Smart City Corporation Limited;
3.42. “State Government”, unless specified otherwise shall imply the Government of Jharkhand;
and
3.43. “Utility” refers to the uses defined in section 13.1.6. of this rule.
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CHAPTER II: OBLIGATIONS OF RSCCL PRIOR TO UTILISATION,
ALLOTMENT OR DISPOSAL
4.
List of plots along with use and development controls
4.1. RSCCL shall comply with the provisions of the approved Master Plan of Ranchi Smart
City, a sanctioned layout of the area based development or such other land(s) vested
with it, indicating inter-alia:
4.1.1.
The list of plots along with area, measurements and means of access to such
plot;
4.1.2.
The purpose(s) for which such plot(s) shall be used;
4.1.3.
Development controls associated with each plot or each group of plots (if
applicable), such as ground coverage, floor area ratio, setback, heights etc.
Provided that, where such separate stipulations are not made, the provisions of JBBL
shall apply to such a plot of land.
4.2. Such a list of plots, along with the layout plan and the information as indicated above
shall be made available by RSCCL for public inspection, both at its office, offices of its
authorised real estate agents as well as on the website of RSCCL or any dedicated
website as determined by RSCCL.
4.3. RSCCL shall assign unique plot numbers or any such means of identification to each plot,
which will be used to identify the characteristics of each plot as indicated in Rule
4.1above, and which may be used by any prospective allottee to verify the location and
other particulars of such plots and other use which is necessary.
5.
Demarcation of plots
5.1. RSCCL will demarcate or cause to be demarcated, through placement of suitable physical
markers such as picket fences, metallic stand posts, stone boulders or any such other
suitable contraption, around the periphery of each unique plot.
5.2. RSCCL shall also maintain, through the course of demarcation of plots, Ground Control
Points and Geographic Information System database, with geographic coordinates of the
outer periphery of each plot, which will be used to identify the limits and extent of any
plot in case the physical feature identifying the boundary of such plot is physically
damaged and/or stolen. It is clarified that while this information shall not be placed as
part of the information before the public, at the time of utilisation, allotment or disposal,
this information will be used to pinpoint the specific plot(s) that is/are being subject to
utilisation, allotment or disposal.
Provided that, in case of any discrepancy between the layout plan and the actual
measurements of the plot as contained within the geographic coordinates of the outer
periphery of such plot, the latter shall be recorded as the correct admeasure.
5.3. RSCCL shall also maintain, for the purpose of demarcation of roads, parks, playground,
amenities and other utilities, Ground Control Points and Geographic Information System
database, derived out of geographical coordinates of the outer periphery of:
5.3.1.
Each plot, where the demarcation is meant to be made for a plot of land or right
of way;
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5.3.2.
Line of alignment, where the demarcation is meant to be made for laying of a
utility line such as electricity supply, water supply, telecommunications, gas etc.
6.
Recording of plots with Competent Authority for land records
6.1. The layout plan shall overlay upon existing plot(s) prevailing in the area. RSCCL shall
record with the relevant Competent Authority of the Government of Jharkhand the
following:
6.1.1.
Details of the plot(s), Khata number(s), and Mauja name(s) on which the layout
plan is imposed;
7.1. Details of the new plot(s) that shall be created as a result of implementation of the layout
plan.
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CHAPTER III: VALUATION AND PRICING
7. Asset price fixation and loading of various costs
7.1. Where an asset is being placed for utilisation, allotment or disposal by sale or lease, the
Base Price shall be fixed by RSCCL in accordance with the applicable laws in force.
7.2. The Reserve Pricefor consideration of utilization or allotment of any property by RSCCL
shall be based on the following factors:
7.2.1. Base Price as fixed by RSCCL
7.2.2. Loading of Non-Saleable Area
It is estimated that around forty-three percent of land within the area based
development may not be allotted on account of such land being used under
roads, open spaces, utilities etc. representing common interest of other
allottees. The cost of such non saleable land shall be loaded on to the land
available for allotment.
7.2.3. Loading of Cost of Development of Infrastructure
RSCCL shall facilitate the provision of the following as part of the site development:
7.2.3.1.
Roads and storm water drainage system.
7.2.3.2.
Water supply system.
7.2.3.3.
Power supply system.
7.2.3.4.
Sewerage network and treatment system.
7.2.3.5.
Telecommunication network.
7.2.3.6.
Smart technologies.
7.2.3.7.
Landscaping of open spaces and other public area which is not part of
any allotted plots.
7.2.3.8.
Such other infrastructure that RSCCL may choose to provide on a non-
discretionary basis i.e. to all allottees.
All of these costs, collectively called “External Development Charges”, shall be loaded on to
the land available for allotment.
7.2.4. Loading of Opportunity Cost for Built Up Area
A built-up opportunity cost for FAR shall be loaded on the Base Price of
each plot.
Provided that, in any case, loading of opportunity cost shall not be less than 5% of the Base
Price.
7.2.5. Loading of Cost as per Land Use
7.2.5.1.
Residential allotments shall be on Leasehold basis/Freehold basis.
7.2.5.2.
Other than residential allotments shall be on Leasehold basis for a period
of ninety nine years.
7.2.5.3.
Residential allotments for Economic Weaker Section (EWS) shall be
offered on subsidized rate.
7.2.5.4.
Public/Semi Public allotments shall be offered on subsidised rate.
7.2.5.5.
Commercial allotments shall be offered at a premium rate.
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7.2.6. Administrative-cost Loading
The cost of administration - design, development, supervision, salaries of
staff and so on for managing, marketing and making the overall
development shall be loaded on Base Price.
7.3. After consideration of the above factors (Rule 7.2.1. to 7.2.6.),Reserve Price shall be fixed as
follows:
Note: X is the Base Price.
Provided that, land/plot shall be offered at INR 1 only for the first applicant from amongst
the top 500World Universities as per Quacquarelli Symonds (QS) or Times Higher
Education (THE) Ranking.
Provided further that, RSCCL may put up a proposal to the Government of Jharkhand, to
alter these factors taking into consideration ground conditions, market demand or such
other factors as may be deemed appropriate.
8. Incentive for Green Building
Additional FAR will be made available to each plot, if the allottee commits to build Green
Building. In such a case, the allottee shall be allowed additional FAR on the condition that an
amount equivalent to 5% of the base price is paid to RSCCL. The milestone and the
corresponding additional FAR shall be as follows:
For achieving GRIHA 3 star
An additional 6% FAR of the base FAR
For achieving GRIHA 4 star
An additional 10% FAR of the base FAR
For achieving GRIHA 5 star
An additional 14% FAR of the base FAR
9. Freehold transfer considerations
9.1.
All Residential allotment shall be offered on freehold basis to the allottee with a condition
to complete the project within five years and obtain completion certificate as per the rule
27.4.
Provided that, for construction period, an unconditional Construction Bank Guarantee
(CBG) of 25% of Offer Price shall be submitted by allottee prior to allotment. If allottee
fails to complete the project within five years the CBG will be forfeited.
Land use Category
Reserve Price
Institutional
0.8x
Residential
2.3x
Residential – EWS
1.3x
Commercial
4.6x
Public / Semi Public
1.3x
Mix Use Component
3.3x
Utility
1.3x
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Provided further that, if an allottee fails to complete the project within five years and fails
to obtain completion certificate as per the rule 27.4., all the provisions related to
compoundable violations will be applicable.
9.2.
The consideration sought shall be 40% of the Offer Price, as determined under
Rule7.3.,payable at the time of allotment, and remaining 60% within twelve months from
the date of auction.
9.3.
Maximum one fourth of the Residential plots will be subdivided into sub plots by RSCCL
and auctioned to individuals.
10. Leasehold transfer considerations and annual lease rent
10.1. All Commercial/Public-Semi Public/Mixed use/Institutional/Utilities allotments shall be
offered only on leasehold basis to the allottee.
Provided that, in case of Universities, Colleges and Professional Institutions,
minimum NAAC “B” Accredited Grade Ranking shall be required for allotment.
Provided further that, in case of School, person having an experience of operating
minimum 2,500 student capacity and produced rank holders of 1-10 either CBSE
or ICSE, shall be eligible for allotment.
Provided furthermore that, in case of Hospital, person having an experience of
operating minimum 500 bedded capacity hospital, shall be eligible for allotment.
10.2. When the property is offered on leasehold basis to the allottee, the period of lease
available to the allottee, shall be for 99 years only.
Provided that, an amount of 10% of Market Price (at that time) shall be charged from
allottee as lease renewal charge after expiry of lease period.
10.3. When the property is offered on leasehold basis to the allottee, sub lease may be allowed
only with the prior approval of RSCCL.
10.4. Where the property is offered for lease, the consideration sought shall be 40% of the Offer
Price, as determined under Rule 7.3.,payable at the time of allotment, and remaining 60%
within twelve months from the date of auction and/or nomination.
10.5. RSCCL shall levy, an annual lease rent of 0.5 percent (rounded off to the nearest hundred)
of consideration paid, for every year of occupancy.
10.6. Lease rent shall be payable on a year-on-year basis by the allottee to RSCCL.
11. Obligation for allottees and payment of taxes and user charges
11.1. Obligation such as payment of stamp duty and registration charges shall be separate and
payable by the allottee to the concerned department of Government of Jharkhand.
11.2. RSCCL shall inform all the concerned departments regarding any further statutory
compliances that may be applicable on the allottee, once the allotment process has been
completed.
11.3. Unless specifically waived off by the Government of Jharkhand as part of any promotional
activity, the allottee will be liable to pay all taxes, levies and user charges for all services
being availed, whether from the Municipal Corporation, RSCCL or any such other service
provider as may be granted rights to provide services under any law or regulation
applicable at such time.
Provided that, in all cases, Property Tax shall be charged by and payable to RSCCL.
12. Treatment/use of fund or surplus
Revenue/income or surplus generating from land monetization shall be used by RSCCL
as per Smart City Mission Guidelines, as notified from time to time.
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CHAPTER IV: USE, UTILISATION AND DISPOSAL
13. Methods of use, utilisation and disposal
13.1. Various kinds of uses of land for the purposes of these rules are as follows:
S. No.
Land Use
Inclusions in general
13.1.1.
Institutional
Schools, Colleges;
Research, Training, Professional Institutes etc.; Universities
/ Deemed Universities (under an Act of the State Legislature
or by an Act of Parliament under section 2 or deemed
University under section 3 of the UGC Act, 1956.);
Institutions, Universities/Deemed Universities;
(established under statutes of foreign Governments)
Standalone hostels and hostels within institutions.
13.1.2.
Residential
Individual and group housing.
Affordable housing.
Guest houses.
13.1.3.
Commercial
Retail Shops, Wholesale, Regulated Markets, Vending
Zones, Weekly Market, Sector, Mercantile Buildings, Hotels
and any other intended for use by for-profit businesses.
Purposes as defined under the Bihar Shops and
Establishments Act, 1953 adapted by Government of
Jharkhand
vide
Notification
S.O.
No.
2/SEA/(LC)
501/2001-L&T 2870 dated 14th November 2002.
13.1.4.
Public, Semi
Public
Government/Semi Government/Public Offices
Government land (use undetermined).
Hospitals as defined under The Clinical Establishments
(Registration and Regulation) Act, 2010, Government of
India
and
Jharkhand
State
Clinical
Establishment
(Registration and Regulation) Rule 2013 and as amended
from time to time.
Social, cultural and religious use.
Community facilities and services etc.
13.1.5.
Mixed Use
Building/premises consisting of more than one compatible
use of which the principal use shall not be less than 2/3rd
of total built up area. Compatible use can be either
Residential or Commercial.
13.1.6.
Utility
Services such as roads including approach roads, bridges,
bypasses and underpasses, street lights, water supply
system, sewerage system, storm water drainage system,
electrical system, communication and command control
system, telecommunication, sewage treatment plants,
irrigation
system,
public
fire
protection
systems,
percolation wells, solid waste disposal system, collection,
treatment,
discharge
and
disposal
of
industrial,
institutional and township waste, gas systems, common
effluent treatment plants (CETP), and any other as may be
defined by the Government.
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Provided that, RSCCL may put up a proposal to the Government of Jharkhand to alter the
definition of land uses taking into consideration factors as may be deemed appropriate.
13.2. RSCCL shall adopt any of the following means of allotment, utilisation or disposal of Land:
13.2.1. Freehold sale to the highest bidder;
13.2.2. Lease to highest bidder;
13.2.3. Award to highest premium paying developer;
13.2.4. Allotment on nomination and/or auction basis for provisioning of Utilities;
13.2.5. Allotment
on
nomination
basis
to
any
Appropriate
Government
Department/Agency/Undertaking/Board.
Provided that, in case of allotment on nomination basis, terms and condition
of the allotment shall be decided by the HPSC.
14. Process of allotment in case of inadequate response
14.1. If RSCCL is unable to secure allottees through first auction, the process may be repeated
two more times. If even after three attempts RSCCL fails to find an allottee, it may, having
taken due cognizance of failure, take corrective actions.
14.2. In case, the Reserve Price of the property is deemed to be the reason for failure to secure
allottees, RSCCL may set forth a new Reserve Price for the property in question after due
consideration.
14.3. Notwithstanding anything contained herein above, the Reserve Price shall not be below the
Base Price.
14.4. If a property fails to evoke interest amongst allottees even after being placed for allotment
after a reduction in the Reserve Price, RSCCL shall resolve to withdraw the property from
allotment till such time a fresh valuation is performed or till such time RSCCL resolves
again to place the property for allotment.
15. Announcement of intent to allot
15.1. The Board shall resolve to place properties for allotment, utilisation and disposal by e-
auction.
15.2. The intent to allot shall be communicated on the website of RSCCL, apart from being listed
on such property portal(s) as may be determined by the Auction Committee or any other
such service as may be selected by the Auction Committee.
Provided that, the RSCCL shall approve of the use of such websites, portals as may be
prescribed after having taken due consideration of security and risk of information;
15.3. RSCCL may also publish such notice in leading newspaper(s) as per media and advertising
policies of Government of Jharkhand.
16. Information to be indicated
16.1. RSCCL shall, in its notice indicating intent to allot, indicate, for each property being placed
for allotment, all the relevant information.
16.2. Reserve price of each property that is placed for allotment (as applicable) through auction.
16.3. A timeline indicating the schedule of allotment viz. start date of sale of application forms,
last date of filing application forms, registration processes, conduct of auction, declaration
of results, payment of upfront sale price and/or lease premium, grant of possession etc.
shall be indicated by RSCCL.
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17. Inspection of properties
17.1. RSCCL shall maintain, at its office, and for all potential allottee(s) and agents to see and
examine, details of information collated under Rules 4to6.
17.2. RSCCL may organise site visits to the Area Based Development to facilitate potential
allottees to assess the actual site(s) for themselves. No reimbursement of any type of
expenses shall be made by RSCCL for these visits to potential allottees.
18. Application process
18.1. RSCCL will solicit registration from interested Person (s) for participating in the allotment
process from a particular date after announcement of intent, wherein:
18.1.1. RSCCL shall issue an application form to be filled up by prospective applicants,
clearly indicating the plots of interest as per development phasing plan of RSCCL.
18.1.2. RSCCL shall ask the applicant to furnish certain “Know Your Customer” (KYC)
documents, as relevant, inter-alia:
i. Statement of incorporation or registration of the applicant in case of a body
corporate such as companies, societies, cooperative societies, trusts, limited
liability partnerships and partnership firms;
Provided that, individuals may also apply; however, RSCCL shall be at liberty to
seek additional information regarding the source of funds from where the lease
or sale consideration is intended to be paid.
ii. Proof of address of registered office and place of actual operations for
communications;
iii. Board resolution attested by Company Secretary and filed with Registrar of
Companies authorising the signatory to act on behalf of the applicant;
iv. PAN and/or AADHAAR Card;
v. Such other information as may be required;
18.2. RSCCL may solicit such applications through its website or any dedicated website with
which it shall enter into an agreement to manage the application process.
18.3. Subject to Rule 18.12., any person may apply for allotment, utilization and disposal of a
plot of land.
Provided that, such person should be (1) legally capable of holding property within the
Union of India, (2) not be insolvent, (3) not of unsound mind in case of individuals, (4) not
be restricted by any law or any order of a competent court of law to hold property.
18.4. RSCCL, in case of allotment, utilization and disposal by freehold basis or by leasehold
basis, shall demand a refundable application fee of five percent of the Reserve Price, to be
payable either as:
18.4.1. A bank guarantee executed in favour of RSCCL in a format specified at the time of
soliciting applications;
18.4.2. Demand draft drawn in favour of RSCCL;
Provided that, in case of the winning bidder not honouring the commitment, in case
of winning the auction, such amount will stand forfeited along with any claims that
RSCCL may place as damages on account of losses if any, suffered by RSCCL in the
process.
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Further provided that,in case of successful bidders, application fee in form of
Demand Draft, shall be adjusted in the Offer Price. In the case of unsuccessful
bidders, the application fee shall be refunded without any interest accrued within
the time such amount is held by RSCCL.
18.5. RSCCL may, in line with statutory requirements for certain kinds of businesses, trades,
professions, restrict applications to certain categories of persons, who meet such criteria
as laid down by RSCCL.
18.6. A person may apply for allotment of more than one property. In such case, the applicant
has to apply separately for each property.
18.7. RSCCL may set forth a non-refundable application processing fee of 0.01 percent (rounded
off to the nearest hundred) of the Reserve Price for each property that is placed for
allotment.
18.8. Application processing fee may be paid in any manner specified by RSCCL, as listed below:
(1) Demand Draft, (2) NEFT/ RTGS/ SWIFT transfer, (3) Challan filed at designated post
office or scheduled commercial bank, (4) any other digital method as mentioned by RSCCL.
18.9. Applications shall be accepted only up to a particular date and time as decided by RSCCL.
Applications and/or payments made after the deadline shall not be accepted.
18.10. In case, RSCCL comes across inadequate interest in any property(s), it may extend the
application window by a period specified by RSCCL.
18.11. Each application accepted shall be assigned an acknowledgment number by RSCCL. For
the purpose of convenience, this number shall be used in all communications and
assignments till the time of granting physical possession of the property.
18.12. Applicants shall be allowed to participate in the auction only if they qualify both Technical
and Financial Eligibility approved by RSCCL.
19. Constitution of an Auction Committee
19.1. RSCCL shall constitute an Auction Committee to set pre-requisites and eligibility criteria
for applicants to participate in the auction, comprising of the Chief Executive Officer, Chief
Financial Officer of RSCCL and at least one member nominated by the Chairman and
Managing Director, RSCCL;
Provided that, where Auction Committee is of the view that an independent view of the
market is necessary, externally nominated individual shaving specialised knowledge of the
function for which the property is meant to be used, may be nominated by the CMD, who
are not associated with any applicant in any manner.
19.2. The Auction Committee shall set the pre-qualification criteria ensuring both Technical
Eligibility and Financial Eligibility of the applicants. The auction committee shall submit
the pre-qualification criteria for prior approval by RSCCL, before issuing a public notice.
20. Conduct of auction for sale or allotment of leasehold rights
20.1. All auctions shall be conducted electronically through a website specifically designated or
co-opted by RSCCL, who shall also take the necessary steps in listing the auction process
and steps.
Provided that, the selection or usage of such websites, portals as may be prescribed shall
be approved by RSCCL after having taken due consideration of security and risk of
information.
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14
20.2. RSCCL shall intimate all applicants, who have been assigned an acknowledgement number
and who have expressed interest in a property that is to be allotted through auction, about
the date and time of the auction.
Provided that, any person who has received an acknowledgment number, but has not been
intimated of the auction, may also participate in the auction using the acknowledgment
number/slip.
20.3. On the appointed day, RSCCL will conduct the auction process after duly verifying that the
participants in the auction, are ones who have previously registered for allotment;
20.4. Bids will be placed on the actual Reserve Price to be paid for the property as determined
by RSCCL. In effect, a bidder cannot bid for a unit rate or for a lease period that is different
from what is on offer.
20.5. The results of the auction shall be recorded by the website as indicated above and also
recorded by the competent representative of RSCCL and placed on its website. The
winning bids will be listed by (1) application acknowledgment number and (2) winning
bid amount.
21. Joint Development Agreement
21.1. In pursuance of the exercise of powers under section 191 of the Act, in certain cases,
where RSCCL wishes to develop any particular Land and/or Plot in association with a
developer, such developer shall be selected, on the basis of a competitive bidding process.
21.2. RSCCL may procure the services of a Transaction Advisor with specialisation in executing
similar projects, to advise, amongst others, on the best course of development of such
property. RSCCL may, use land monetisation as a method on which the Joint Development
Agreement shall be executed as an appropriate mode of transaction along with a
concession.
Provided that such Transaction Advisor shall not be allowed who is/are
associated with any applicant in any manner.
21.3. RSCCL may, form a new joint venture special purpose vehicle company for the specific
project involving the plot, for which joint development agreement is to be made.
21.4. The selection of the developer will be conducted separately and by a Special Committee
constituted by RSCCL for the said purpose. The Transaction Advisor will provide the draft
of the joint development agreement, term sheets and such other documentation required
to execute the project, which will be approved by RSCCL.
22. Issue of demand cum offer of allotment letter
22.1. RSCCL may, within two weeks of the conduct of the auction, issue demand-cum-offer of
allotment letters seeking the upfront payment of the Offer Price based on the amount
realised during the auction.
22.2. The demand letter shall lay out a period of three months from the date of issue for the
allottee to deposit the amount with RSCCL through its Authorised bank or method
mentioned.
22.3. In the event of failure of the allottee to do so, the offer of allotment shall stand withdrawn;
Provided that, the offer will be made, in the case of auction, to the bidder who has
submitted the next highest bid; if such bidder does not accept, then the offer shall be made
to the third highest bidder, and so on.
Provided further that, any letter or notice sent by RSCCL through the Registered Post or
through Courier or through the Electronic Post (E-Mail) to the allottee at the address or E-
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Mail address given in agreement to lease or agreement for sale shall be deemed to have
been legally delivered and served upon the allottee.
23. Payment of consideration
23.1. An allottee shall make the payment of consideration as per Rule7.3 before being granted
possession of the property.
23.2. RSCCL will issue letter stating no-objection to the mortgage of the property only against
the property where the entire consideration has been received in full by RSCCL.
23.3. Payments shall be made to the account specified by RSCCL, in a manner of its choosing,
such as demand draft, NEFT/ RTGS/ SWIFT, pay order, bank challan and any digital
method. Regulations associated with mandatory disclosures in terms of sale, purchase,
transfer or conveyance of property such as quoting of Income Tax PAN etc. as announced
by Government of India or Government of Jharkhand from time to time shall apply.
24. Grant of possession and issue of conveyance deed/lease deed
24.1. RSCCL, after having satisfied itself that the conditions of the demand letter and offer of
allotment have been met, shall execute a conveyance deed or lease deed, as the case may
be, in favour of the allottee. The registration of deed will be facilitated by RSCCL, with the
registration charges, stamp duty and applicable taxes being paid for by the allottee to the
concerned department.
Provided that, in any case, conveyance deed or lease deed, as the case may be, shall be
executed only after receiving full and final consideration amount from the allottee.
24.2. At the time of grant of possession, a representative of RSCCL shall ensure the demarcation
of the plot in line with the coordinates recorded as per Rule5, and issue a letter of
handover to the allottee.
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CHAPTER V: RIGHTS AND OBLIGATIONS OF ALLOTTEE
25. Use not to be changed without express permission of RSCCL
25.1. Allottees shall be expected to use the premises only for the purpose, for which it is
allotted. Changes in use, where permitted by applicable law shall require being approved
by RSCCL.
Provided that, even in case of changes permitted by applicable law, only up to5% of the
built-up area shall be allowed to be changed.
Provided further that, such changes shall be allowed only when the changes in use are for
allied activities permitted under applicable law.
26. Transfer of lease
26.1. An allottee may transfer the lease of the property to another person(s) for a consideration.
The tenure of the lease will not exceed the period of the original lease.
26.2. An allottee desiring to transfer lease or possession to another person has to seek and
obtain a no-objection certificate (NOC) from RSCCL.
26.3. RSCCL shall be entitled to receive payment of two percent of the consideration paid by the
transferee to the transferor. Such payment may be made either by the transferor or
transferee.
Provided that, if RSCCL is of the opinion that the consideration paid by the transferee to
the transferor, is below the Market Price of the property. RSCCL is entitled to carry out an
instant valuation of the asset as per the provision of section 247 of Companies Act, 2013
and Companies (Registered Valuers and Valuation) Rules, 2017as amended time to time
and be entitled to receive two percent of such Reserve Price as derived under Rule 7.3.
Provided further that, where the property is changing hands between the transferor and
transferee as a gift, RSCCL is entitled to carry out an instant valuation of the asset as per
the provision of section 247 of Companies Act, 2013 and Companies (Registered Valuers
and Valuation) Rules, 2017as amended time to time and be entitled to receive two percent
of such Reserve Price as derived by Rule7.3.
Provided further that, this clause shall also apply to situations where the allottee may wish
to transfer part or whole of the asset to a Real Estate Investment Trusts (REITs)as
recognised by the Securities and Exchange Board of India (SEBI).
Provided furthermore that, the cost incurred on valuation shall be paid either by the
transferor or transferee to RSCCL.
27. Development controls and adherence to bye-laws
27.1. Allottees will adhere strictly to the development conditions laid forth by RSCCL at the
time of allotment of the plot. Where any provisions are not explicitly specified, the
provisions of JBBL shall be deemed to apply.
27.2. Deviations from sanctioned plan shall be addressed in the manner as prescribed under
the applicable law.
27.3. To the above effect, an allottee must submit a building and/or a site plan to RSCCL within
ten months of being granted possession and seek approval from the relevant authority
under applicable law.
27.4. Allottees will have to commence construction on the land within one year of grant of
possession and obtain a completion certificate from RSCCL within a period of five years of
grant of possession;
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Provided that, where the plot of land is proposed to be developed in phases, at least one
phase should be made operational in a span of five years. The term ‘phase’ includes a
building, for which an occupation certificate has been received.
Provided further that, an extension may be allowed for maximum one year to obtain
completion certificate as the case may be. Thereafter the allottee shall be liable for penal
actions and legal procedure to be pursued including cancellation of allotment as per the
provisions of RERA and/or as per the provisions of this Rule.
28. Sustainability measures
28.1. Latest GRIHA Star Rating Two or equivalent is mandatory for the ABD buildings.
28.2. Allottees in possession of more than two acres of land will be obligated to install the
following in addition to the compliance with GRIHA Criterions:
28.2.1. measures pertaining to on-site waste management capable of handling all organic
waste;
28.2.2. measures for generating solar energy through solar panels installed on the roof of
the structure or any such horizontal or vertical surface, which does not impede
movement of public or users, nor encroaches upon any public land, right of way or
such other means of access that may impede safety and accessibility across the
site, in general.
Provided that, in case the allottee fails to achieve committed rating at the time of
final completion, a penalty shall be imposed at the rate of two (2) times of the land
cost as per the ‘Reserve Price’ for the incentive FAR for the rating not achieved.
29. Mortgage or securitisation of land/plot
29.1.
Allottees may mortgage their land with any recognised financial institutions with prior
permission from RSCCL in order to raise financial resources for their respective projects;
29.2.
RSCCL shall, in line with Rule 23.2 above, issue a letter stating no-objection to such
mortgage, unless it has any concerns about the intent or capability of the allottee, which
it may communicate to the same in writing, stating reasons.
29.3.
In the event of the mortgaging bank or financial institution having to liquidate the
asset(s) on account of default by the allottee, the following principles shall apply:
29.3.1. The mortgaging bank or financial institution shall take possession of the land
along with any property, such as buildings, plant and machinery installed on the
same.
29.3.2. The mortgaging bank or financial institution shall consult with RSCCL as to the
period for which the asset shall be leased to a new lessee to recover dues from
the defaulting lessee.
29.3.3. The mortgaging bank or financial institution shall auction freehold sale for the
plot of land; the Reserve Price for the freehold land being determined in the same
manner as the freehold sale of a new plot of land in Rule7.3 above.
29.3.4. The mortgaging bank or financial institution shall auction leasehold rights for the
plot of land for a period of years remaining in the lease period of the current
(defaulting) lessee at the time of the bank or financial institution taking
possession; the Reserve Price for the lease being determined in the same manner
as the lease of a new plot of land in Rule 7.3 above.
29.3.5. If applicable, the mortgaging bank or financial institution shall also auction the
assets situated on the land, such as building, plant, machinery or other movable
assets on an as-is basis at a value determined by it, in accordance with
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18
regulations for valuation of assets hypothecated or mortgaged to the bank or
financial institution.
29.3.6. Proceeds from the auction of freehold sale/leasehold rights shall be used to, first,
settle the outstanding debt of the financial institution. The remaining proceeds
shall be used to settle any outstanding dues of Government/RSCCL. Thereafter
the remaining proceeds shall be used towards settlement of any outstanding dues
of Utilities and, surpluses, if any, shall accrue to allottee.
Provided that, RSCCL shall have the first right over the property which is being
auctioned by the mortgaging bank or financial institution on the matching price
of the highest bidder.
29.4. The mortgage shall be purely usufruct in nature, i.e. the mortgaging financial
institution shall only securitise the rights of the allottee to occupy and use the premise
and transfer in case of default such rights to another allottee.
29.5. In the event of usufructuary mortgage, the conveyance shall not be treated as a
‘transfer’ under Rule 26 above; however, in the event of the financial institution
allotting such rights to another party for liquidation of the liabilities of the original
and defaulting allottee, the same will be treated as a ‘transfer’ under Rule26.
29.6. In certain cases, allottees may desire to transfer the debt liability from one financial
institution to another on account of better terms of loan or a repayment plan, such
transfer shall be allowed under intimation to RSCCL, and shall not be considered as a
‘transfer’ under Rule26.
30. Surrender of leasehold land
30.1.
Allottees, who desire to surrender land including any building(s) constructed at any
given point may do so by:
30.1.1. Applying to RSCCL of their intent to surrender or vacate such land and building;
30.1.2. Providing a current valuation of immovable assets existing on the plot at the
time of applying for such surrender not including trees, shrubs or such other
natural vegetation, rocks, earth or naturally occurring materials.
30.1.3. Issue a certificate duly certified by its statutory auditors that at the time of
demanding the surrender, no dues or liabilities are pending with any bank or
financial institution that would be passed on the land, buildings and/or any
other immovable or movable assets situated on the land, or any such third party,
which would result in a claim to be made towards RSCCL in the future, after the
surrender has taken place.
30.1.4. Providing a tentative schedule of evacuation and handing over of such premises.
30.2.
RSCCL, upon receipt of such request, may verify the present condition of the land and
structures, if any, present on the same and communicate its acceptance or rejection of
such surrender.
30.3.
RSCCL shall accept or reject such request on the basis of prevailing market condition and
other relevant factors as deemed fit, at the time of such request to surrender.
30.4.
RSCCL shall reimburse to the surrendering allottee, the following sum(s) of money for
the various portions surrendered:
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S.No.
Component
Maximum amount payable
30.4.1.
Balance of lease
amount
Sixty percent of original lease consideration
paid apportioned for the balance amount of
lease period; forty percent shall be retained
by
RSCCL
as
penalty/
compensation.
Consideration shall not be adjusted to
present day, nor any interest payable
thereupon.
30.4.2.
Constructed assets
that are found to be
in violation of any
applicable law
None, cost of demolition/dismantling to be
deducted from the returnable amount of the
allottee.
30.4.3.
Constructed assets
which are not in
violation of any
applicable law
Depreciated replacement cost.
30.4.4.
Plant, machinery or
other movable
assets
None, cost of disposal to be deducted from
the returnable amount of the allottee and
proceeds from disposal thereof retained by
RSCCL.
30.5.
The allottee shall execute a conveyance deed (“surrender deed”) in favour of
RSCCL.Stamp duty and registration charges, if any, shall be payable by the allottee.
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CHAPTER VI: MISCELLANEOUS
31. Penal levies
31.1.
In case of any instances of violation of the terms of freehold or leasehold by an allottee,
RSCCL shall first classify the nature of the violation. Typically, a violation will be of one
of the two types: (1) Compoundable and (2) Non-compoundable. The following violation
shall be categorized as compoundable violations:
31.2.
The following shall be categorized as non-compoundable violations:
S. No.
Non-compoundable violations
31.2.1.
Non-payment of lease or lease premium or considered
amount.
31.2.2.
Diversion of land for purposes other than what was
prescribed in approved layout plan provided by RSCCL.
31.2.3.
Material violation of approved layout plan which cannot
be corrected.
31.2.4.
Material violation of building plan which endangers the
lives and livelihoods of people or goods inside.
31.2.5.
Encroachments on public space, natural drainage of the
locality, area earmarked/approved for roads, parking,
drains and other facilities as indicated in approved lay
out plan.
31.2.6.
Where number of floors has been increased from
permissible limit/sanctioned map.
Note:The above compoundable or non-compoundable violations are indicative only and
not exhaustive in nature. At any stage, if it is felt that the above violations are not covering
all violations, RSCCL shall have liberty to add or delete the violations as the case may be
with approval of competent authority.
S.No.
Compoundable violations
31.1.1.
Non-commencement of construction.
31.1.2.
Non-completion of construction/project.
31.1.3.
Violation of approved plan but not to an extent that any
other service within the site is compromised.
31.1.4.
Variations in building plan which do not endanger the
building
31.1.5.
Development has been undertaken in deviation of the
approved plan, but within the framework of the use
restriction and provisions, norms, and stipulations of this
Rules.
31.1.6.
Deviations up to5% in respect of side, front and rear
setbacks.
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21
31.3.
RSCCL shall indicate the nature of material loss it would stand to incur on account of the
compoundable or non-compoundable violations allegedly committed by the allottee.
Such nature of loss shall be the basis for RSCCL to proceedings for cancellation of lease
as per Rule 32 below.
31.4.
Violations in the nature of non-compoundable shall be penalised as per the relevant
provisions of Act(including all its amendments made thereafter) and any other
prevailing Act, Rules etc.;
31.5.
Violations in the nature of compoundable shall be penalised as per the relevant
provisions of Act (including all its amendments made thereafter) and any other
prevailing Act, Rules etc.;
Provided that, such penal levy(s) should be minimum 5% and maximum 10% of the
consideration paid, adjusted to the year in which such levy is being made;
Provided further that, such levy(s) will be treated as arrears of land revenue and
recoverable under the Bihar and Orissa Public Demand Recovery Act, 1914 as adapted
by the Government of Jharkhand or recovered as per section 181 of the Act.
32. Cancellation of allotment, resumption and payments to be made
32.1.
RSCCL reserves the right to cancel the allotment:
32.1.1 in case of non-compoundable violation;
32.1.2. allottee fails to pay or deposit the amount of penal levy(s) determined, in case of
compoundable violation.
32.2.
Before cancellation of allotment, the allottee shall be granted the right to be heard, and
explain its position.
32.3.
If RSCCL is not satisfied with explanation of the allottee, it shall cancel the allotment
through a reasoned order.
32.4.
No amount will be refundable in case of cancellation of allotment.
32.5.
RSCCL and the allottee shall initially attempt to settle the issue by reference to
Arbitration by an Arbitral Tribunal constituted in accordance with the provisions of the
Arbitration and Conciliation Act, 1996 as amended from time to time. The number of
Arbitrator shall be Three (3). Each party shall appoint one Arbitrator and the third
Arbitrator shall be appointed by the two Arbitrators, who shall act as the Presiding
Arbitrator. The place of the arbitration shall be Ranchi, Jharkhand and the language of
the arbitration proceeding shall be in the English language. The cost of arbitration shall
be borne by each party equally.
32.6.
The Courts in Ranchi shall have exclusive jurisdiction.
32.7.
The vacation of property by the allottee shall be governed by the relevant law in force in
of the State of Jharkhand. Upon vacation of the premises by the allottee, RSCCL shall
resume possession of premises.
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32.8.
The plot of land or property of RSCCL or resumed by RSCCL shall be deemed ‘public
premises’ and therefore liable to eviction proceedings under Bihar Public Land
Encroachment Act, 1956 as adapted by Government of Jharkhand.
33. Power of the State Government
33.1.
Notwithstanding anything contained in the foregoing paragraphs of the Jharkhand Smart
Cities Land and Other Fixed Assets (Utilisation, Allotment and Disposal) Rules, 2019, the
State Government by issuance of notification in the official gazette may amend or
withdraw any of the provisions mentioned herein above.
33.2.
If any difficulty arises in giving effect to provisions of this rules, the same shall
be referred to the High Powered Steering Committee (HPSC) constituted under
Smart Cities Mission by Government of Jharkhand vide Notification No. 06A/न०व०/
SCM-01/2015-2433 dated 13/07/2015, and thereon the decision taken by the HPSC
shall be final.
By the order of the Governor of Jharkhand,
Ajoy Kumar Singh,
Secretary to Government
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Printed & Published by the Superintendent of Jharkhand Government Press, Doranda, Ranchi.
Jharkhand Gazette (Extraordinary) 985-- 100.