Homebuyers to pay less, Noida stamp dept favours flat registration on carpet area
“It means a flat buyer will have to pay less stamp duty for execution of registry and the builder will not be able to cheat a buyer in the name of ‘super area’.”noida Updated: Jun 15, 2017 09:47 IST
In a move that will benefit lakhs of homebuyers, the Gautam Budh Nagar stamp and registration department may allow registry of flats for the ‘carpet area’ instead of ‘super area’.
“It means a flat buyer will have to pay less stamp duty for execution of registry and the builder will not be able to cheat a buyer in the name of ‘super area’. But we will start registry on the basis of carpet area only after the Uttar Pradesh government adopts the real estate regulatory act (RERA) that was put into effect from May 1, 2016,” said GP Singh, deputy inspector general (DIG), stamp and registration department, Gautam Budh Nagar district.
Carpet area is the space between the inner faces of the walls. The super area includes outer parts such as balcony, club, shafts, etc.
The UP stamp and registration department has decided to discuss the matter with top officials in Lucknow because RERA clearly states that the flat size will have to be calculated on the basis of carpet area instead of super area.
“I discussed the matter with the UP stamp and registration department that now they should execute flat registry for only carpet area. They should stop charging stamp duty for super area as RERA has removed all confusions on how a flat size should be measured,” said Santosh Kumar, officer on special duty, Noida authority.
If implemented, the move will benefit around three lakh flat buyers in Noida and around two lakh flat buyers in Greater Noida.
“Because RERA is a central act, we will have to adhere to it. But let the state government form RERA and start implementation,” said the DIG.
“Builders cheat buyers in the name of super area by asking for extra money for increase in “super area” -- the space reserved for lifts, balcony, passageways and clubs in a building. For example, if one buys a 1,200 sq ft apartment at the rate of Rs. 5,000 per sq ft (Rs 60lakh), the actual covered area or the size of the apartment would be just 900 sq ft, with no exact specification of the ‘super area’ for which one paid Rs 15 lakh. As per RERA, a builder cannot use the term super area now,” said Rajiv Singh, a flat buyer.
Builders said the move would reduce revenue for the government but it will certainly benefit buyers.
“If the registry is executed on super area basis, the government earns more revenue in stamp duty. As per RERA there will be no ambiguity with regard to calculating the flat size. Now the builder will have to declare as to how he has calculated carpet area of the flat. The builders that increase flat size on completion of a project will not be able to do so and buyers will benefit,” said Amit Modi, vice-president , CREDAI, western UP.