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Flats ready, but buyers not interested executing registries in GB Nagar
NOIDA: There are 36,883 apartments that are partially ready for occupation as per the rules, but owners of these units are not getting registrations executed, a
NOIDA: There are 36,883 apartments that are partially ready for occupation as per the rules, but owners of these units are not getting registrations executed, a survey conducted by Uttar Pradesh stamps and registrations department has found.
Apartment owners are not getting registry done to transfer the property to their names due to a slowdown in the realty sector and other technical reasons with the result that the government is losing a lot of revenue — about ₹753 crore of it, to be precise.
The Uttar Pradesh principal secretary Beena Kumar, after reviewing the stamp and registration department’s revenue collection, directed the staff to set up camps to get the flat registrations done to recover the lost revenue.
“The Noida, Greater Noida authorities and other responsible officials should set up camps and ensure that these flats are registered so that the government can collect revenue in terms of stamp duty,” Kumar, who visited district magistrate’s office in Greater Noida for a review on Monday, said.
There are 26,000 flats in Noida and 10,883 units in Greater Noida, for which buyers are yet to execute registries. Some buyers who are already living in these units are not getting registries done as they want to evade having to pay the stamp fee.
As per rules at the time of registration of flat, a buyer has to pay 5% of total flat cost as stamp fee to the government.
There are also others who are unable to get registries executed as builders are unable to pay the financial dues to the Noida or Greater Noida authorities, failing which no occupancy/completion certificate is issued, which is a mandatory document for executing registries.
As per rules, these two authorities cannot let buyers execute registrations until the builders settle their financial dues against respective housing projects. These builders bought land from the authorities on the promise of instalment payments. And, over the years, several of them have defaulted on the instalments.
“We have simplified the process for apartment buyers to get ownership rights for their flats in cases where the builder does not have any financial dues. They can buy the stamp paper and get the agreement to sublease done. By this method, a buyer gets a legal right over the flat and the government also gets its revenue. We will take appropriate steps to recover the revenue,” BN Singh, district magistrate, Gautam Budh Nagar, said.
Prashant Tiwari, president of Western UP wing of Confederation of Real Estate Developers’ Association of India (CREDAI), a builders’ lobbying group, said, “The stamps and registrations department, along with the authority officials, should get registries done by setting up camps to facilitate apartment owners. The move will help in recovering revenue and also benefit buyers who could not execute registries. The administration’s move to allow agreements to sublease will also empower buyers who could not get registries done owing to financial liabilities of developers.”
