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+--- Thread: Real estate is a lawful business: SECP (/showthread.php?tid=6437)
Real estate is a lawful business: SECP - Naveed Yaseen - 07-28-2009 05:37 AM
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) while addressing misconception in general public regarding real estate sector informed that the Companies Ordinance, 1984 deals with the incorporation of companies and there was no legal restriction on real estate companies being incorporated under the ordinance, as real estate was a lawful business.
A press release issued here on Monday revealed that the SECP could not regulate the real estate sector. Under the Constitution of Pakistan, this sector falls within the ambit of the provinces and not federal level institutions like the SECP.
Most of the real estate development projects in the country were being carried out by societies, trusts, authorities and such other vehicles, which in any case could not fall within the jurisdiction of the SECP.
Advances received by companies as pre-payment for tangible assets agreed to be delivered at a future date could not fall in the definition of deposit. However, currently real estate development companies, which could not possess the lands were required to get approval from the SECP for inviting advances through media advertisements. In this respect whatever limited role the SECP has, it was pursuing it diligently. The SECP's role came to an end after approval of advertisements.
Any disputes between the developer and a customer being contractual obligations between parties, also could not fall within the jurisdiction of the SECP and falls within the jurisdiction of the courts of law.
Despite this, the SECP had time and again launched public service campaigns against unscrupulous elements to bring into the knowledge of the general public, the fraudulent activities of such elements by publishing advertisements in print media.
http://www.dailytimes.com.pk/default.asp?page=2009\07\28\story_28-7-2009_pg5_3