Greater Noida adopts Noida model for flat registry to help homebuyers
The Greater Noida authority will relax the terms for select housing projects that are stuck because builders have failed to clear land dues.noida Updated: Sep 20, 2017 22:18 IST
The Greater Noida authority has decided to replicate the Noida model for payment and issuance of occupancy certificate. The move will allow staggered payment of land dues, ensuring faster completion and handover of housing units to homebuyers.
The Greater Noida authority will relax the terms for select housing projects that are stuck because builders have failed to clear land dues. The move will benefit homebuyers.
“We have prepared a proposal to replicate the Noida model. The proposal will be approved in our board meeting on September 22 and sent to the state government for final clearance before we open the new terms for OC issuance to builders,” said chief executive officer of Greater Noida authority Debasish Panda.
In Noida, a builder can deposit 10% of the total land dues and register flats by paying the remaining dues per housing unit.
For example, if a builder owes Rs 100 crore to the Noida authority against a housing project that has 1,000 flats, he will have to pay Rs 10 crore to offer possession and execute registry.
Against this payment, the authority will issue a temporary occupancy certificate for half the project—500 flats. The total land dues of R100 crore will be distributed across 1,000 flats, i.e, Rs10 lakh per housing unit.
Earlier, a builder had to pay land dues per tower. For example, if a builder owed Rs100 crore in land dues for a building with 1,000 flats in 10 towers, he was supposed to deposit Rs 10 crore per tower to deliver flats to buyers.
Similarly in Greater Noida, builders are unable to clear land dues and get OC to offer possession to homebuyers. Builders in 203 housing projects are struggling to clear Rs 7,200 crore land dues to Greater Noida authority.
At present, Greater Noida builders can get flat registry done on pro-rata basis. But since ongoing scheme requires more funds to be eligible to get registry, Noida model may benefit both builders and buyers.
The Noida authority made the changes on August 24.