The Noida authority on Wednesday issued a public notice informing its buyers that they will lose possession of their residential plots if they fail to build a house on them by June 17, 2017 if 10 years have passed by then since the plot’s allotment date.
Apart from that, if a buyer fails to build a house within three years of the allotment date, heavy penalty will be imposed on the allottee.
According to the authority, there are around 500 vacant plots that are likely to complete 10 years of allotment on June 17, 2017.
“We have decided to cancel plot allotment if the buyer has not built a house till June 17, 2017, and (the allotment of) a particular plot completes 10 years. We had issued an office order on June 18, 2015, informing allottees about the penalty to be imposed on them for delaying construction on their plots. We will have to be tough because these plots create health issues for those living near them,” said PK Aggarwal, additional chief executive officer (ACEO), Noida authority.
According to Noida authority’s order on June 18, 2015, if a house is not built within three years of allotment, the authority will charge a penalty at the rate of 7% of the plot’s cost. If it is not built even after five years, the penalty will be 8% of the total cost. For a delay of each subsequent year, the penalty will increase by 1%, up to 13% between the ninth and tenth year. If the plot remains vacant even after 10 years of allotment, the Noida authority will have the right to cancel the allotment and resume the plot.
However, the penalty will be calculated on the allotment price and not the current price of the plot of land.
“The penalty will keep on increasing with the delay. All those plot owners whose allotment would have completed 10 years by June 17, 2017, but who still haven’t built a house have their last chance to do the same or lose possession of the plot,” said a Noida authority official.
“However, if an allottee provides evidence that he/she could not build on the plot for a valid reason, such as the plot owner met with an accident or passed away, then the authority may look into it,” the official added.
The authority has issued a public notice on the matter so that buyers cannot claim that they were unaware of the new penalty and cancelation norms.
“We have sent notices individually to all allottees who have not built houses on plots. We issued a public notice so that they cannot claim that they do not know about this new penalty,” Aggarwal said.