The Gautam Budh Nagar administration on Saturday warned builders and nearly 25,000 homebuyers to either register their flats before November 30 or pay a heavy penalty.
Officials said living in flats without execution of registry is illegal and that the government is losing out nearly Rs700 crore in stamp fee.
A committee headed by additional district magistrate (finance) Keshav Kumar carried out a survey, which found that around 25,000 homebuyers have occupied flats in various group housing complexes flouting norms.
These 25,000 flats are located in Noida and Greater Noida, the survey revealed.
“We called 36 builders for a meeting at the district headquarters on November 4 and told them to either get the registry done or get ready to face action. The administration will act against the builders first and then against homebuyers. We will impose a 10% (of the stamp fee) on each flat as penalty on the builder. We are also planning to lodge FIRs against builders,” said NP Singh, district magistrate, Gautam Budh Nagar.
The district administration is miffed with builders for offering possession of flats before execution of registry.
“We will earn Rs 700 crore revenue if stamp fee is paid for these 25,000 flats,” said an official of UP stamp and registration department.
The district administration said if homebuyers are facing problems in getting their flats registered because of a delay by the builders in obtaining occupancy certificates, then they can purchase the stamp fee to evade action.
“If the builder is able to ensure that a homebuyer who has taken possession of a flat will buy stamp in proportion to the property cost, then we will not take action because we are recovering our revenue,” the DM said.
Noida and Greater Noida have also not been able to recover land dues running into Rs 10,000 crore from builders, who are citing a dip in sales due to a realty slump for not paying up.
“A leading builder has given possession to 8,000 homebuyers without even completing the towers. We are planning to lodge an FIR against him if he fails to get registry executed,” an official of the registration and stamps department said.
Confederation of Real Estate Developers Association of India (CREDAI) said homebuyers should not be made to suffer.
“Laid down procedures should be followed by builders before offering possession to buyers. Homebuyers should not suffer at all because they have invested their hard-earned money in these flats,” said Getambar Anand, CMD, ATS Infrastructure, and national president, CREDAI.
According to officials, they can execute 60 registries in the course of a working day. “But if we work overtime, like we did in March, we can execute 250-300 registries a day,” SK Singh, assistant inspector general, UP stamps and registration, Noida, said.