Entry of Foreign Architects in India - 1

You might also like

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 17

GLOBALISATION AND ITS IMPACT ON ARCHITECTURE

The number of Indian mega cities will double from the current three (Mumbai, Delhi and
Kolkata) to six by the year 2021 (new additions will be Bangalore, Chennai and
Hyderabad), when India will have the largest concentration of mega cities in the world
The IT and BPO sectors have transformed the social structures of Indian families and their lifestyle
patterns.
Globalization in India has some crucial issues which need to be addressed, such as planning systems for cities
wherein the infrastructural nodes and integrated townships redefine the aspects of travel, work, live and play
Entry of foreign architects in India

Introduction

The profession of architecture in India has undergone a drastic change in the past decade.

The past few years have been turning point not seen since the independence of India.

The increasing economy and the growing middle class have caused the developers to bring the foreign architects
for designing bungalows, resorts, airports, residential and office buildings.

Currently, there are many companies practicing architecture in India. The profession of architects is governed and
regulated by the Architects Regulation, 1989 (as amended in 2003).
Architecture Firms follow these business patterns
Sole Proprietorship Partnership Firm Private Ltd Company

Individual ownership Shared ownership between two or Increase in the size of the firm and
more people. annual income
Individual invests capital. Investment of capital is done by all the As per the Companies Act, 1956, the
partners. company is to be registered with the
Individual has the decision making Registrar of the Companies
authority. Partnership activities are governed by
(Indian Partnership Act, 1932). If any of the members of the company
Single owner is responsible for both is a non-architect than the company
profit and loss. Sharing of profits can be equal or will be registered as business firm and
unequal as per the terms of the not a professional firm.
If not registered as a limited liability agreement.
company or corporation with the They can offer a variety of services
state. All the partners in an architectural under one roof.
firm should be registered architects
Then the owner does not pay income (Architects Act, 1972).
tax separately for the company but
mentions income or losses on his/her
personal income tax return.
Illegal Practices in the Architecture profession

There are three aspects under which the profession is illegally practicing in the modern day:

Illegal Practice 1-
Foreign companies practicing with the local players in India
1. Have unregistered Foreign/Indian directors in the company.
2. The company is registered to pay Architecture service tax.

Illegal Practice 2-
Indian companies practicing
1. Have unregistered Foreign/Indian directors in the company.
2. Company registered to pay Architecture service tax.

Illegal Practice 3-
Indian company practicing architecture
1. Have registered Indian Directors.
2. The company is not registered to pay Architecture service tax.
Requirements for practicing as an architect in India

Registration with COA (Council of Architects, constituted by Government of India under the provisions of The
Architects Act, 1972) as an architect. Registration with the Tax Department of India as an architectural practice.
Registration with the Council of Architecture
One cannot use the title ‘Architect’, if not registered with the Council of Architecture in India.
Qualications required for registration as specied by the Architects Act, 1972 [see here]
A recognized architectural degree or diploma. Resides in India. If he/she is not an Indian but is engaged in the
practice for not less than 5 years. Possesses other qualifications that certify his application for registration (Search
here).

Section 37(1) of the Architects Act, 1972


Prohibition against use of title.
1. No individual other than a registered architect, or a firm of architects may use the title and style of an architect
after the termination of one year from the appointed date under sub-section (2) of section 24 provided that the
provisions of this section do apply to:
1. A designated “landscape architect” or “naval architect” practicing the profession of an architect. Wherein
“landscape architect” means any person dealing with the designing of open spaces relating to plants, trees and
landscapes, and “naval architect” means a person dealing with the designing and construction of ships. 2. A person
who is carrying on the profession of an architect outside the boundaries of India as far as he has the prior
permission of the Central Government to undertake the position as a consultant or designer in India for a specific
project.
WHY ARE THEY ILLEGAL?

These claims are simply based on the following excerpts from the Architect’s Act 1972. I have taken the liberty to
highlight few important notes.

SECTION 25 – REGISTERATION

Qualication for entry in register – A person shall be entitled on payment of such fee as may be prescribed by rules to
have his name entered in the register, if he resides or carries on the profession of architect in India and–

(a) holds a recognised qualication, or


(b) does not hold such a qualication but, being a citizen of India, has been engaged in practice as an architect for a
period of not less than ve years prior to the date appointed under sub-section (2) of section 24, or
(c) possesses such other qualications as may be prescribed by rules :
Provided that no person other than a citizen of India shall be entitled to registration by virtue of a qualication
(a) recognised under sub-section (1) of section 15 unless by the law and practice of a country outside India to which
such person belongs, citizens of India holding architectural qualication registrable in that country are permitted to enter
and practise the profession of architect in such country, or
(b) unless the Central Government has, in pursuance of a scheme of reciprocity or otherwise, declared that
qualication to be a recognised qualication under sub-section (2) of section 15.
FOR REFERENCE SECTION 15 – FOREIGN ARCHITECTS

Recognition of architectural qualications granted by authorities in foreign countries –

(1) The Central Government may, after consultation with the Council, direct, by notication in the Ofcial Gazette, that an
architectural qualication granted by any university or other institution in any country outside India in respect of which a
scheme of reciprocity for the recognition of architectural qualication is not in force, shall be a recognised qualication for
the purposes of this Act or, shall be so only when granted after a specied date or before a specied date : Provided that
until the rst Council is constituted the Central Government shall, before issuing any notication as aforesaid, consult the
expert committee set up under the proviso to sub-section (2) of section 14.

(2) The Council may enter into negotiations with the authority in any State or country outside India, which by the law
of such State or country is entrusted with the maintenance of a register of architects, for settling of a scheme of
reciprocity for the recognition of architectural qualications, and in pursuance of any such scheme, the central
Government may, by notication in the Ofcial Gazette, direct that such architectural qualication as the Council has
decided should be recognised, shall be deemed to be a recognised qualication for the purposes of this Act, any such
notication may also direct that such architectural qualication shall be so recognised only when granted after a specied
date or before a specied date.
COA (Council of Architecture) Has left opportunities for reciprocity between different architectural councils,
however, no such agreement has been made yet.
SECTION 37 – WHO CAN USE TITLE?

Prohibition against use of title-


(1) After the expiry of one year from the date appointed under subsection (2) of section 24, no person other than a
registered architect, or a firm of architectsshall use the title and style of architect:

Provided that the provisions of this section shall not apply to

(a) practice of the profession of an architect by a person designated as a “landscape architect” or “naval architect”;

(b) a person who, carrying on the profession of an architect in any country outside India, undertakes the function as a
consultant or designer in India for a specific project with the prior permission of the Central Government.

(i) “landscape architect” means a person who deals with the design of open spaces relating to plants trees and
landscape;
(ii) “naval architect” means an architect who deals with design and construction of ships. (2) If any person
contravenes the provision s of sub-section
(iii) he shall be punishable on first conviction with fine which may extend to five hundred rupees and on any
subsequent conviction with imprisonment which may extend to six months or with fine not exceeding one
thousand rupees or with both.
III.WHAT IS BEING DONE? I am at a predicament where the information I am allowed to share is limited. Information
shall surface publicly in due course of time. Believers may trust me that CoA is asking illegal entities to shut down or
change their MoA. It is summoning unregistered practioners. Companies are also facing criminal charges currently,
example RSP Singapore as per the 16thJuly article in the Times of India. However, what I can share is the following

1. On 10 October 2011 a circular was released by Ministry of Corporate Affairs (MCA), instructing all ROCs and RLLPs to
not register any company that have architecture in their Memoranda of Association (MoA). In their notice they
clearly index Architects Act 1972 Section 36 and 37.

2. On 1 March 2012 another circular was released by MCA to ROCs and RLLPs. This time, commenting on the profession
of Chartered Accountant, Cost Accountant, Architect, Company Secretary etc. Here, the October circular was reinforced
and all ROCs + RLLPs were instructed to refer the respective regulatory body before registering a company.

Clearly that would mean that for Architects the CoA was to be refered and CoA in turn indexes the Architects Act. 3. On
16 July 2012, TOI highlighted some of the issues regarding foreign practices. It used the case led against RSP Architects
as an example too. In short the purging of the profession has begun. Appendices: Currently there are 900 Companies
practicing architecture in India. Whatever they may claim in their MoA (design services, spatial planning, etc) most of
them are paying Service tax for Architecture. Some don’t even have architects as directors. There are also honest
Foreigners who have registered themselves with the CoA. Which shows their respect for the law of the land.

To s u m u p , t h e r e a r e a v e n u e s f o r a s y s t e m a t i c a p p r o a c h t o p r a c t i s e i n t h i s c o u n t r y.
Then why choose wrong methodologies?
Case: Premendra Raj Mehta and Ors vs National Building Construction Corp. Ltd. and Ors [W.P. (C) 2106/2012]

The petitioners, registered architects under the Architects Act, 1972 complained that respondent no. 1 National Building
Construction Corp. Ltd. (NBCC) has awarded to respondent no. 4, a foreign firm, work for providing consultancy services for
a project of redevelopment of Kidwai Nagar, East, though the firm is neither registered under the Architect Act, 1972 nor
has it taken permission from the Government in terms of the proviso to Section 37 of the Architect Act,1972. Therefore,
petitioners seek relief through the issue of the writ of certiorari and mandamus.
NBCC in the counter affidavit claimed that petitioners have no locus standi in the present petition and also submitted that
the petition does not comply with the Delhi High Court (PIL) rules, 2010. NBCC states that section 37 of the Act only
regulates the use of the term “architect‟ as title or style and has no bearing on the right to engage any architectural
practice.
Work awarded by the respondent no.1 is for comprehensive services not limited to architectural services but extends to
other fields such as consultancy and engineering as well. It is further submitted that the architectural functions assigned to
respondent no.1 would be carried out principally by its Indian partners M/s Sapna Kumar who is duly registered under
Section 37 of the Act.
Issues
1. Whether the petitioners have Locus Standi to file the writ petition? 2. Whether or not the respondents have violated
the terms of Section 37 of the Architects Act, 1972?

Court’s Reasoning
1. The petitioners have no Locus Standi as the petition was not filed in public interest and during the hearing the
petitioners had also stated that they have not filed a PIL. Being the registered architects under Section 37 of the
Architect Act, 1972, the petitioners had a personal interest in the outcome of the petition, therefore, they cannot
possibly file a petition in public interest.
2. No, the respondents have not violated the terms of Section 37 of the Architects Act, 1972. As we read Section 37 of
the act which is laid down under the heading “Prohibition against use of title” shows that though the provisions
herein bars a person other than a registered architect or firm of architects from using the title and style, but it does
not stop him from giving architectural services as long as he does not use the expression architect or firm of
architects.
Holding
V.K.JAIN, J held that “For the reasons stated hereinabove, I find no merit in the writ petition and the same is
dismissed. No order as to costs.”

Opinion
Such interpretation of law may lead to unqualified persons providing services such as supervision of construction of
buildings and the constructions supervised by such persons may not be safe and economical, but, then the remedy
lies in the hands of the Parliament who have the power to amend the provisions of the act, and not in the court taking
an interpretation of the already existing provisions of the act.
What is being done?
The Council of Architect is asking the illegal organizations to either shut down or change their MoA (Memorandum
of Association). It is summoning illegal/ unregistered practitioners. Companies are also facing criminal charges
against them.

1. A circular was released by Ministry of Corporate Affairs (MCA) on 10th October 2011, instructing all ROCs
(Registrar of Companies) and RLLPs (Registrar of LLPs) to not register any company having the architecture in
their MoA. (For Notice see here #116).

2. Another circular was released by MCA to ROCs and RLLPs on 1st March 2012, reinforcing the October circular
and all ROCs and RLLPs were to refer to the respective regulatory body before registering a company. Therefore,
for architects, the Council of Architects was to be referred. (For Notice see here).

3. Council of Architects on 15th November 2014 issued a Public Notice for Information and Guidance. (For Notice
see here).

4. Council of Architects on 15th November 2014 also issued a Public Notice regarding Unqualified and
Unregistered persons practicing as architects wherein they asked such persons to stop the use of the title and
style of architect and/or practicing architecture immediately or else they will face penal action against them. (For
Notice see here).
Conclusion

The love of Indians for all foreign things can be seen everywhere and most of the real estate players utilize this
opportunity. That is the reason many of them advertise their residential and commercial projects as the one being
designed by reputed international architects, giving buyers a misleading impression that the apartments made by
foreign collaborations are of the international level and of better worth. However, by doing this, they are violating the
provisions of Section 37 of the Architects Act, 1972, which prohibits a foreign architect from working in India without the
prior permission of the Government of India.

References
1. https://timesofindia.indiatimes.com/business/india-business/Architects-keep-foreignplayers-
out/articleshow/23433916.cms
2. http://www.thehindu.com/news/cities/Delhi/HC-dismisses-petition-against-foreignarchitects/article17279363.ece
3. https://www.coa.gov.in/
4. http://epaper.timesofindia.com/Repository/ml.asp? Ref=VE9JQS8yMDEzLzEwLzAzI0FyMDE1MDA%3D
5. https://indiankanoon.org/doc/194771575/

You might also like