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In case of non compliance of the provisions of this Act, what are the consequences?

The relevant provisions for non compliance of The Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972, are sections 12, 13, 14, & 15. Which are dealt with herein below:

Sec. 12: General liabilities of a person who takes a flat - Any person who has executed an agreement to take a flat and who without reasonable excuse failed to pay at the proper time and place the price, the Municipal Taxes, Water and Electricity charges Ground Rent, and other Public Charges, payable in respect of the Flat taken by him, shall on conviction be punished with fine which may extend to Rs. 1000/-. 

Sec. 13: Manager not to cut off, withhold, curtail or reduce essential supply or service- Any person, who is a promoter, or who is in charge of management or connected with the management as a member of the Managing Committee Director/ Secretary, who contravenes the provisions of Section 13 or disobeyed the directions of the Court for restoration of amenities shall on conviction be punished with   imprisonment for a term which may extend to 3 months or with fine or with both. 

Sec. 14: Offences by promoter -  Any promoter  who  without  reasonable excuse fails to comply with, or contravenes any provisions of the Act or any Rule made there under shall on conviction be punished with imprisonment for a term which may extend to one year or with fine which may extend to Rs. 2000/- or with both; and any  promoter who commits criminal breach of trust of any amount advanced or deposited with him for the purposes mentioned in Section 5 shall on conviction be punished  with imprisonment for a term which may extend to 4 years or with fine or with both. 

Sec. 15: Offences by companies - If a person committing an offence under this Act is a Company, every person who at the time the offence was committed was in charge of and was responsible to the Company for the conduct of business by the Company as well as the Company  shall be  deemed to be  guilty of the  offence and shall be liable to be proceeded against and punished accordingly except wherein such person proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

In case an offence under this Act has been committed with the consent or connivance of, or is attributable to any negligence on the part of any director, Manager, Secretary or other officer of the Company, such Director, Manager, Secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to proceeded against and punished accordingly.

Note: (1) Section 5 deals with the promoter to maintain separate account of sums taken as advance or deposit and to be trustee thereof and disburse them for purposes for which given.

(2) The language used in this note under sec. 12, 13, 14 and 15 are not the verbatim of the stature language.


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