Form ‘B’, Declaration Supported by an Affidavit
Form ‘B’, Declaration Supported by an Affidavit, is a promoter’s sworn declaration covering land title, encumbrances, project funds, completion, approvals, accounts and non-discrimination in allotment. The supplied text identifies it as Form ‘B’ under rule 3(4), but does not identify the issuing department, an order number or a date.
What the form covers
Form ‘B’, Declaration Supported by an Affidavit, must be signed by the promoter of a proposed real estate project or a person authorised by the promoter. It records details including the survey number, village, district and relevant block, wing or tower. The promoter must also state when the project is completed or will be completed.
The supplied text does not name the issuing department, an order number or a date. It describes the document as Form ‘B’ under rule 3(4).
Who it affects
Form ‘B’ directly affects promoters making the affidavit cum declaration. It is also relevant to allottees, property buyers and professionals checking the promoter’s declarations about the project land, finances and approvals.
Main declarations by the promoter
The promoter must declare and undertake that:
- The promoter has legal title to the project land, or has an agreement with a person who has legal title.
- Valid authentication of title and an authenticated copy of the agreement between the landowner and promoter are enclosed where applicable.
- The land is free from encumbrances, or full details of existing rights, title, interests or claims over the land are disclosed.
- Seventy per cent of amounts received from allottees will be deposited in a separate account maintained with a scheduled bank.
- For building projects, the separate account will cover construction and land costs. For layout projects, it will cover development and land costs.
- Project funds will be used only for the stated purpose.
Withdrawals, audit and completion
For a building project, withdrawals from the separate account require certification by an engineer, architect and practising chartered accountant. The withdrawal must be proportionate to the project’s percentage of completion.
For a layout project, withdrawal may be made after an architect or licensed surveyor certifies that development has been completed in all respects according to the layout approved by the competent authority.
The promoter must have the accounts audited by a practising chartered accountant within six months after each financial year ends. The certified statement must be produced to the Authority, and the audit must verify project-specific use of collections and compliant withdrawals.
The promoter must also obtain pending approvals on time, provide prescribed documents, avoid discrimination during allotment, and verify that the declaration is true and that no material information has been concealed.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does Form ‘B’ require the promoter to disclose land encumbrances?
Yes. The promoter must declare that the land is free from encumbrances or provide details of any rights, title, interests or claims affecting it.
How much of the money collected from allottees must go into a separate account?
Seventy per cent of the amounts realised from allottees must be deposited in a separate account maintained with a scheduled bank.
Can a promoter withdraw money from the separate account at any time?
No. For building projects, withdrawal requires certification by an engineer, architect and practising chartered accountant and must match the percentage of completion. A different certification requirement is stated for layout projects.
Does the promoter have to audit the project accounts?
Yes. The promoter must arrange an audit by a practising chartered accountant within six months after the end of every financial year and submit the certified statement of accounts to the Authority.
