Uttar Pradesh chief minister Akhilesh Yadav’s order to allow scrapped ₹500 and ₹1,000 notes to pay property registration fee failed to provide relief to buyers as they could not buy stamp papers with these notes.
On November 16, the UP chief minister had announced that the scrapped notes will be accepted as registration fee at the stamp and registration offices until November 24. The decision was taken to benefit buyers who wanted to get registration done.
However, homebuyers who have not purchased stamp paper before November 8, when the demonetisation of ₹500 and ₹1,000 notes were announced, are suffering.
“A property buyer needs to pay a registration fee in the range of ₹5,000-₹20,000 and buy stamp paper (worth 5% of the property cost) to deposit revenue to the government. As per the state government order, we are allowed to accept the ₹500 and ₹1,000 notes only for registration. The government has not allowed the purchase of stamp paper with these notes,” SK Singh, assistant inspector general, stamp and registration department, Gautam Budh Nagar, said.
Buyers also have an option of buying e-stamp paper through the real time gross settlement system (RTGS) payment or with the new notes.
Officials said that execution of registrations has been severely affected, which has led to a sharp dip in revenue.
“We used to earn ₹2-₹3 crore on an average, daily, before the demonetisation. But now, we earn only ₹40-₹50 lakh revenue daily. Since November 8, only 20-30 registrations have taken place. Only those who had already purchased stamp papers are getting the registration done,” an official with the stamp and registration department in Noida’s Sector 33 office said.
Indirish Gupta, the founder of Noida Extension flat owners welfare association, said, “The demonetisation of ₹500 and ₹1,000 notes has affected homebuyers, most of whom had withdrawn cash to do the registration but could not buy stamp paper before demonetisation. Centre and state governments should have allowed the purchase of stamp paper with scrapped notes to benefit buyers, particularly homebuyers, who are already suffering due to delayed delivery of flats.”
According to the Gautam Budh Nagar district administration, 25,000 homebuyers have occupied flats without registering their properties. The administration, on November 6, had warned them to either get registration done by November 30 or face action. The administration had also issued a notice to builders who allowed possession without registration.
Ajay Tyagi, a buyer and resident of a building in Sector 45, said, “I have paid the total flat cost and want to get it registered but, I cannot do so due to my builder’s fault, who is failing to get clearances from the Noida authority.”
As the order was given before the demonetisation move, the district administration said it will review the situation.
NP Singh, the district magistrate of Gautam Budh Nagar, said, “We are monitoring the cash flow. We cannot force these 25,000 buyers to register their properties by November 30 due to the ongoing cash crunch. Once cash flow is normalised, we will issue a new deadline for buyers to get registration done.”