NOIDA: The Noida authority Friday approved a proposal allowing builders to pay financial dues per flat and execute registries for each unit. This would help buyers facing a long delays in registries amid the crisis gripping the real estate sector. The authority has also decided not to increase the land allotment rate.
“Even after developers have obtained the occupancy certificate, many flat buyers are unable to execute lease-deed (registry) in their favour due to the non-payment of land dues by respective builders. As a result, flat buyers have been suffering. Therefore, to address their grievance, the authority has decided that a developer can clear financial dues flat-wise and execute registries,” Ritu Maheshwari, chief executive officer (CEO), Noida authority, said.
The Noida board meeting, which was attended by its chairman Alok Tandon and members such as Greater Noida authority CEO Narendra Bhooshan, Yamuna Expressway authority CEO Arun Vir Singh and others, approved the proposal.
The developers have taken the housing land on an instalment basis after payment 10% of the total plot cost. They were to pay the remaining cost in instalments. These builders got occupancy certificates and also offered possession to apartment buyers without executing lease deeds transferring ownership to the flat buyer. As per rules, the tripartite registry or lease deed — between buyer, builder and the authority — an only be executed after land dues are paid. Citing a dip in sales amid the economic slowdown, the developers are unable to clear outstanding land dues. The builders are supposed to pay ₹50 crore to ₹1,000 crore, depending upon the size of the plot for housing projects.
“Builders can easily pay the land dues per flat. We have taken this decision to benefit homebuyers,” a Noida authority official, not authorised to speak to the media, said.
{{/usCountry}}“Builders can easily pay the land dues per flat. We have taken this decision to benefit homebuyers,” a Noida authority official, not authorised to speak to the media, said.
{{/usCountry}}The authority, in 2017, had approved the flat-wise financial dues clearance and flat registration, but as the UP government had not approved it till date, it could not be implemented. The authority is once again trying to get it implemented. This can benefit around 35,000 flat buyers, who have paid the flat cost but are yet unable to get ownership of property.
Builders said the new rule will help buyers.
“Builders are facing a financial crisis and are unable to pay dues of ₹20 crore or ₹50 crore at one go. If flat-wise financial dues clearance and registry are allowed, it will benefit buyers as builders can somehow manage to arrange per flat dues, which may be around ₹5 lakh or ₹10 lakh,” Suresh Garg, member of confederation of real estate developers association of India (CREDAI), a builders’ lobbying group, said.