PUNJAB REAL ESTATE AGENTS AND MOTOR VEHICLES DEALERS (REGULATION OF BUSINESS) ORDINANCE, 1980

THE PUNJAB REAL ESTATE AGENTS AND MOTOR VEHICLES DEALERS (REGULATION

OF BUSINESS) ORDINANCE, 1980

(VI of 1980)

[21st June, 1980]

An

Ordinance

to regulate the business of real estate agents and motor vehicles dealers in the Province of

Punjab.

Preamble.— WHEREAS it is expedient to regulate the business of real estate agents and

motor vehicles dealers in the Province of the Punjab, in the manner hereinafter appearing ;

NOW, THEREFORE, in pursuance of the Proclamation of fifth day of July, 1977, read with

the Laws (Continuance in Force) Order, 1977 (CMLA Order No.1 of 1977), the Governor of the

Punjab is pleased to make and promulgate the following Ordinance: -

1.Short title, extent and commencement.— (1) This Ordinance may be called the Punjab

Real Estate Agents and Motor Vehicles Dealers (Regulation of Business) Ordinance, 1980.

(2)It shall extend to the Province of the Punjab.

(3)It shall come into force at once.

2.Definitions.— In this Ordinance, unless the context otherwise requires, the following

expressions shall have the meanings hereby respectively assigned to them: -

(a)“Government” means the Government of the Punjab;

(b)“motor vehicle” means any propelled vehicle adapted for use upon roads whether

the power of propulsion is transmitted thereto from an external or internal source

and includes a tractor, a trailor and a chassis to which a body has not been

attached;

(c)“motor vehicles dealer” means a person who arranges or negotiates any transaction

of sale, exchange, transfer or pledge of a motor vehicle in consideration of some

commission or other remuneration in cash or otherwise or who deals in sale or

purchase of motor vehicles;

(d)“prescribed” means proscribed by rules;

(e)“real estate” means immovable property, including land, benefits to arise out of land,

and things attached to the earth or permanently fastened to anything attached to the

earth;

(f)“real estate agent” means a person who arranges or negotiates any transaction of

sale, exchange, mortgage, lease or tenancy of a real estate in consideration of

some commission or other remuneration in cash or otherwise; and

(g)“registering authority” means the District Excise and Taxation Officer or any other

officer notified by the Government for the purpose, in whose jurisdiction the ordinary

place of business of the real estate agent or the motor vehicles dealer is situated.

3.Prohibition of business without registration.— (1) No person shall engage in or carry

on the business of a real estate agent or a motor vehicles dealer unless he is registered with the

registering authority and holds a valid certificate issued by such authority :

Provided that in the case of a person who is already carrying on the business of a real

estate agent or a motor vehicles dealer on the date of commencement of this Ordinance, this

provision shall not be applicable until the expiry of a period of ninety days from the date of such

commencement.

(2)A person already carrying on the business of a real estate agent or a motor vehicle

dealer on the date of commencement of this Ordinance shall apply for a certificate of registration

within a period of ninety days from the date of such commencement.

(3)If any person already carrying on the business of a real estate agent or a motor

vehicles dealer on the date of commencement of this Ordinance fails to apply for a certificate or

registration as requires under sub-section (2), the registering authority may, instead of taking

action against him under the penal provisions of this Ordinance, entertain his application for grant

of a certificate of registration on payment of a penalty which shall be Rs.500/- if the application is

made within a period of six months and Rs.1000/- if it is made within a period of one year from the

date of the commencement of this Ordinance.

4.Disqualifications.— No person shall be registered as a real estate agent or a motor

vehicles dealer and granted a certificate of registration if he-

(a)is a minor; or

(b)is found to be of unsound mind by a court of competent jurisdiction; or

(c)is a declared insolvent; or

(d)has been found guilty of criminal mis-appropriation or criminal breach of trust or

cheating or any other offence involving moral turpitude or an abetment of or attempt

to commit any such offence by a court of competent jurisdiction; provided that this

disqualification will not operate if a period of three years has elapsed since the

completion of the sentence imposed on any person in respect of any such offence.

5.Procedure for registration.— (1) A person who wishes to obtain a certificate of

registration to engage in or carry on the business of a real estate agent or a motor vehicles dealer

shall make an application to the registering authority concerned in such form and manner and on

payment of such fee and furnishing of such security as may be prescribed :

Provided that such fee shall not be more than rupees two thousand.

(2)The registering authority, on being satisfied that the applicant has fulfilled all the

requirements and does not suffer from any of the disqualifications laid down in section 4, shall

register him as a real estate agent or a motor vehicles dealer, as the case may be, and grant him

a certificate in the prescribed form.

6. Renewal of registration.- (1) A certificate of registration issued under section 5 shall be

valid for a period of one year only and shall be renewable annually.

(2)A real estate agent or a motor vehicles dealer who wishes to get his certificate of

registration renewed shall, within thirty days preceding the date of expiry of his certificate, apply to

the registering authority concerned in such form and manner and on payment of such fee as may

be prescribed:

Provided that such fee shall not be more than rupees six hundred.

(3)The registering authority, on being satisfied that the applicant has fulfilled all the

requirements and does not suffer from any of the disqualifications laid down in section 4, shall

grant a certificate of renewal of registration in the prescribed form.

(4)If a real estate agent or a motor vehicles dealer fails to apply for the renewal of his

certificate of registration within the period provided in sub-section (2), the registering authority

may, instead of taking action against him under the penal provisions of this Ordinance, entertain

his application for renewal of registration on payment of a penalty of rupees one hundred if the

application is made within one month and rupees five hundreds if it is made within three months of

the date when the renewal was due.

7.Fixation of commission.— Government may prescribe maximum rate of commission or

remuneration which a real estate agent or a motor vehicles dealer may charge on any transaction

of real estate or motor vehicle arranged or negotiated by him.

8. Maintenance of record and account etc.- (1)A real estate agent and a motor

vehicles dealer shall maintain such accounts and other record of the transactions arranged,

negotiated or made by him and in such manner as may be prescribed.

(2)A real estate agent and a motor vehicles dealer shall, as and when required to do

so, produce the accounts and other record maintained by him under sub-section (1) before such

officer or authority as may be prescribed and shall also supply such information and in such form

and within such time as may be required by the authority.

9.Cancellation and suspension of registration.— (1) The registering authority may, by an

order in writing, cancel or suspend a certificate for such period not exceeding three months for a

first breach and not exceeding six months for a second or subsequent breach, as may be

specified in that order, if it is satisfied that a real estate agent or a motor vehicles dealer has

committed a breach of any of the conditions of the certificate or has committed any of the

following mal-practices: -

(i)Has maintained or submitted incorrect accounts of the transactions;

(ii)Has arranged or negotiated a transaction knowing that there was a defect in the title

of the real estate or the motor vehicle; or

(iii)Has charged commission or remuneration at a rate higher than that prescribed:

Provided that no such order shall be passed without giving the person concerned an

opportunity to show cause within fifteen days from the date of issue of show cause notice.

(2)Any person aggrieved by an order passed under sub-section (1) may, within 30 days

of the passing of the order, prefer an appeal to the Director, Excise & Taxation, concerned and

the decision of the said Director shall be final.

1[9-A.Recovery of dues.— Any amount due under this Ordinance shall be recoverable as

arrears of Land revenue.]

10. Offences.- (1) A person who contravenes any of the provisions of this Ordinance shall be

punishable with simple imprisonment which may extend to six months or fine which may extend to

Rs.5000/- or both.

(2)No court shall take cognizance of the offence under this Ordinance except on a

complaint made in writing by the registering authority.

(3)The offences under this Ordinance shall be bailable.

11.Power to make rules.— Government may make rules for carrying into effect the purposes

of this Ordinance.

1 Section 9-A added vide the Punjab Finance Act, 1998