Residents rejoice as transfer charges on resale of property halved in Noida

The move comes after the Uttar Pradesh government issued directions to the authority to reduce the fee as it will benefit homebuyers

In a move that may boost homebuyers’ sentiments, the Noida authority has reduced the transfer charges it levies on the resale of a property by 50%.

Officials said that the new charges will be applicable on the properties allotted after 2011. (HT archive)

In its 203rd board meeting held on Friday, the authority decided to reduce the transfer of memorandum (TM) fee, commonly known as transfer fee/charge, from 5% to 2.5% on residential category, which includes plots and flats. Officials said that the new charges will be applicable on the properties allotted after 2011. The transfer fee is levied on the resale of plots and flats at the time of registry.

The move comes after the Uttar Pradesh government issued directions to the authority to reduce the fee as it will benefit homebuyers.

“We have reduced the TM fee in order to provide relief to residents and those who want to buy a property in this industrial town,” said Sanjiv Mittal, chairman of the Noida authority, after the board meeting held at the authority’s main administrative building in Sector 6.

In a resale property transaction, the Noida authority at present charges 5% of total flat/plot cost as per the prevailing allotment rate as transfer fee. For example, for a ₹1 crore flat, a buyer will now have to pay ₹2.5 lakh as transfer charge instead of ₹5 lakh earlier.

Residents have expressed happiness at the decision by the authority.

“We are happy that the Noida authority finally accepted our long standing demands on TM charges. We hope it will benefit the realty sector in the city,” said Rajesh Sahay, general secretary of the Noida Federation of Apartment Owners Associations, an umbrella body of Noida’s AOAs.

However, a section of residents said that the authority should do away with the transfer fee completely.

“The government charges around 7% of total property cost as registry fee. Then why did they levy additional transfer fee in Noida. The authority should remove this fee completely,” said SK Nagrath, a retired army official and president of Jaypee Aman AOA.

Anti-smog tower at DND

The Noida authority also approved a proposal to install an anti-smog tower along the Delhi-Noida-Direct (DND) road, near the Film City in Noida, to mitigate air pollution in the area. The 20-metre tower -- the first one in the city -- will be installed by November 15 this year and will cover a space of 400 square metres.

“Air pollution is a big problem during the winters. If this tower becomes a success, the authority may also install anti-smog towers at other locations in the city,” said a Noida authority official, requesting anonymity.