No NOC needed to sell flats on land owned by govt or civic agencies

Confusion had arisen in April, after the department amended Article 18 (a)(1) (b) of the Registration Act. The amendment was ambiguous, and officials had interpreted it in a way that required an NOC from MHADA, SRA, MIDC and CIDCO for the sale and transfer of every flat built on their property

MUMBAI: The department of stamps and registration has issued a circular that has brought relief to developers intending to sell flats they have built or properties they have redeveloped on land owned by various government or civic agencies.

MHADA Office at Bandra Internet photo

In a clarification issued on Thursday, the department said builders do not require a no-objection certificate (NOC) from agencies such as the Maharashtra Housing Area and Development Authority (MHADA), City and Industrial Development Corporation (CIDCO), Maharashtra Industrial Development Corporation (MIDC) or municipalities, to sell or transfer flats built on land belonging to these agencies. The clarification was issued by Dharmdev Mainkar, deputy inspector general of stamps and registration.

Confusion had arisen in April, after the department amended Article 18 (a)(1) (b) of the Registration Act. The amendment was ambiguous, and officials had interpreted it in a way that required an NOC from MHADA, SRA, MIDC and CIDCO for the sale and transfer of every flat built on their property, explained Hitesh Thakkar, an expert on property registration.

“This led to procedural and other delays, which ultimately led to a 70% fall in the registration of such properties. Some buyers also sought a refund of stamp duty as it was not possible to get NOCs in time,” he said.

The July 24 circular, however, clarifies that the provisions of section 18 (a) (1) (b) of the Registration Act will not be applicable to the sale or resale of residential and/or non-residential units in buildings developed by private developers on land leased by municipalities, local self-government bodies and authorities such as MHADA, CIDCO and MIDC. They will, however, apply to documents in the form of final purchase deed / assignment deed in the form of land and construction in the interest of the organization or company in respect of such property, the clarification said.

Raju Dhote, deputy inspector general, stamps and registration department, said the clarification had been issued after consulting the state revenue department and law and judiciary department. They had also informed the state inspector general of stamps and registration, Ravindra Binwade, about the delays and losses in revenue.

A senior officer in the state finance department said, “The finances of the state are strained because of the Ladki Bahin and other welfare schemes. Most revenue comes from urban areas and we realised that our revenue from stamps and registration in urban areas was falling. Hence, we asked the Stamps and registration department to issue the clarification.”