Section 27
of Housing Developers (Control And Licensing) Ordinance, 1993
Section 27
—
Where on his own volition a housing developer informs the Controller or where as a result of an investigation made under section 15 or for any other reasons the Controller is of the opinion that the housing developer has or is likely to become unable to meet his obligations to his purchasers or is about to suspend his building operations or is carrying on his business in a manner detrimental to the interests of his purchasers, the Minister may, either on his own motion or on the report of the Controller for the purpose of safeguarding the interests of the purchasers of the housing developer—
(a)
direct the housing developer in question to take such steps as he may consider necessary to rectify any matter or circumstance;
(b)
appoint or cause to be appointed a person to advise the housing developer in the conduct of his business;
(c)
direct any other housing developer (hereinafter referred to as “the designated housing developer”) to assume control and carry on the business of the housing developer upon such terms and conditions as the Minister may determine with a view to completing any housing development which the housing developer is undertaking;
(d)
direct the housing developer to present a petition to the
High Court for the winding up of his business; or
(e)
take such action as the Minister may consider necessary in the circumstances of the case for carrying into effect the provisions of this Ordinance.
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(2)
The action to be taken by the Minister under subsection
(1)
may include a declaration that the housing development has been abandoned as where a housing developer had refused to carry out or delayed or suspended or stopped or ceased works continuously for a period of six months or more or beyond the stipulated period of completion as agreed under the sale and purchase agreement.
(3)
Every such direction or action of the Minister made under subsection (1) shall be binding on the housing developer.
(4)
Where a designated housing developer has, in pursuance of a direction of the Minister under subsection (1)(c), assumed control of and carried on the business of a housing developer, the following provisions shall apply:
(a)
the housing developer in question shall submit his business to the control of the designated housing developer and shall provide the designated housing developer with such facilities as the Controller may consider necessary for the purpose of carrying on the business of the housing developer with a view to completing any housing development which the housing developer is undertaking;
(b)
the designated housing developer shall take over and become in control of and continue to carry on the business of the housing developer until such time as the Minister may in writing otherwise direct or until the completion to the satisfaction of the
Controller of the housing development of the housing developer;
and
(c)
every such assumption and cessation of control of the business of a housing developer pursuant to a direction of the
Minister made under subsection (1)(c) shall be published by the
Controller in the Gazette.
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