Impose stamp fee as per original flat delivery date: Central Committee
The UP government will soon take a decision on the recommendations made by the high-level committee formed on June 18, 2018Updated: Sep 10, 2018 03:56 IST
In a major relief to aggrieved homebuyers, an 11-member high-level committee headed by DS Mishra, secretary, Union ministry of housing and urban affairs, has recommended that the Uttar Pradesh government allow registry of a flat at the circle rate prevalent when possession of the dwelling unit was promised by the builder.
Currently, if the builder delivers a flat after a five-year delay, then the Uttar Pradesh stamp and registration department imposes a stamp fee based on the circle rate of the year of registry. The practice increases the financial burden on the homebuyer, who, due to no fault of his/her own, simply received the flat late.
The UP government will soon take a decision on the recommendations made by the high-level committee formed on June 18, 2018. The Noida, Greater Noida and Yamuna Expressway authorities’ chief executive officers, top officials as well as national building construction corporation officials are members of this committee. The committee has made 11 recommendations to the ministry of finance, the UP government and the industrial authorities to solve homebuyers’ issues.
The committee’s recommendations include waiving off stamp fee for homebuyers, the formation of a ‘zero period policy’, additional funding to builders to finish stuck projects, legal assistance to aggrieved homebuyers and a separate real estate regulatory authority (RERA) for Noida and Greater Noida, among others. The Hindustan Times had, on September 8, reported that the committee has also recommended to the ministry of finance that the Reserve Bank of India should ask banks to consider realtors’ proposals to fund stuck realty projects.
Zero period refers to the time period in which the government cannot impose an interest on land dues to be paid by the builder. Builders take housing land under the 90:10 scheme. The builder pays 10% at the time of allotment and remaining 90% is paid in instalments over eight years. If the builder defaults on instalments, the authority imposes a 12% interest on the principal amount, which runs into crores of rupees. Builders have been demanding the waiver of interest for the period when construction was affected in the area due to a legal dispute between farmers and the government that allotted land to builders. Builders have asked that the period when construction was affected be declared ‘zero period’ so that they need not pay any interest.
As per the committee’s recommendations, if the housing project land is affected by legal disputes in different courts then the government should give it an interest waiver.
The high-level committee has also recommended that the suggestions made by the Uttar Pradesh government’s three ministers’ panel, was formed in April 2017, should be implemented to address homebuyers’ issues.
“The UP government will very soon take decisions on the suggestions and recommendations made by the high-level committee and the suggestions made by the ministers’ panel,” Jai Pratap Singh, UP excise minister and in-charge of Gautam Budh Nagar district, said.
Once the UP government takes a decision, the Noida, Greater Noida and Yamuna Express authorities will implement it. “Let the state government take a decision, we will follow,” Partha Sarthi Sen Sharma, CEO, Greater Noida authority, said.