If you want to buy a property (commercial or residential) along the two Metro routes in Greater Noida you will have to cough up more money. The Greater Noida authority has started levying more fees on property purchase if it is located along the under-construction Metro routes in the city. In a board meeting on October 21 the authority had approved a proposal that sought to charge additional fee on purchase of property along the Metro lines.
A 1km area on either side of the Metro link is considered as the Influence Zone, where the additional charges will be applicable.
“We have started charging a 2% additional charge on each property transfer if the flat, shop, plot or any other type of property is located along either of the two routes that will be operational soon. We are levying 10% charges on new allotments along the two routes,” said Deepak Agarwal,chief executive officer of the Greater Noida authority.
As per an estimate, the Greater Noida authority officials hope to earn about ₹1,300 crore by implementing additional fee on property purchase along Metro lines.
“There are Alpha-I, II, Knowledge Park-II and Delta areas located along 8km stretch. We estimate earning around ₹300 crore by charging the additional fee. We will earn around ₹1,000 crore in Greater Noida West area, where we will have 10km Metro link stretch,” said Arvind Mohan, general manager (group housing), the Greater Noida authority.
Along 10 km stretch there are 10 important areas including sectors 1 and 16, which are a hub of group housing complexes.
One of the Metro routes that is under-construction under the 30 km Noida-Greater Noida link connects Noida’s sector 71 with Greater Noida’s Delta. Work on this route is 60% complete and will be opened to public by December 2017. About 8km of the stretch falls in Greater Noida. Another route that has been proposed is a 15km stretch connecting Noida’s sector 71 with Greater Noida’s Knowledge Park-V. Around 10 km of it falls in Greater Noida.
However, demonetisation has affected the collection of the authority, as property purchase has witnessed a slowdown.
“We are yet to calculate how much we have earned so far by imposing the 2% levy on property transfer. We are yet to allot new land to impose 10% additional charge. But the exercise will help us in meeting the cost of the Metro projects,” said Agarwal.
Greater Noida authority begins imposing a 2% levy on property transfer
This means if A buys a property from B then A will have to pay 2% more for the property. So, for a property of ₹1 crore one will have to pay ₹2 lakh transfer charge
The authority will also charge 10% more on a new property allotment . So, for a property of ₹1crore, a buyer will pay ₹10 lakh more
The additional money will be used to be invested in Metro projects: 30 km link: ₹5,533 crore (approx) and 15km Metro link: ₹3,884 crore (approx)