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Noida: Admin sets March deadline for builders to clear dues

The Uttar Pradesh stamp and registration department on Friday filed FIRs against builders of 15 projects in Noida and nine projects in Greater Noida-based in this regard.

noida Updated: Feb 11, 2018 22:37 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida,Gautam Budh Nagar,realty woe
Buyers have shifted into Amrapali Sapphire without executing registry.(Sunil Ghosh/HT Photo)

After ordering FIRs against builders for handing over possession of flats without executing registry, Gautam Budh Nagar district magistrate (DM) BN Singh on Sunday said that the administration will not stop action in these cases until the builders pay the revenue, as per the law.

The Uttar Pradesh stamp and registration department on Friday filed FIRs against builders of 15 projects in Noida and nine projects in Greater Noida-based in this regard.

“The law will take its course. The action will be as tough as the provisions of the law because the builders have commissioned an offence. Now, these 15 builders have time till March 31, 2018, to pay the revenue or get ready to face a jail term, as per rules. If they will not ensure compliance, the administration will not hesitate in sending them to jail. Buyers are also suffering due to the fault of builders. When builders have collected flat costs from buyers, why are they not paying stamp fee to the government and clearing other dues?” Singh said.

Non-registration of flats has resulted in huge revenue loss to the government thereby, prompting the administration to file FIRs against violators. According to Section 13 of the UP Apartment (promotion of construction ownership and maintenance) Act, 2010, a builder cannot allow possession or transfer of ownership right without executing the registration of the flat.

The stamp and registration department conducted a physical inspection and found that a total 10,130 flats have been offered for possession to buyers without execution of registry. The state government has lost revenue of Rs334.13 crore, officials said.

Officials said flats in projects of the Unitech Group, Amrapali Group, Divine India Private Limited, Assotech, Victory Cross Road, Realtors Private Limited builder, AGC Ajnara Homes and Gardenia Aims Glory, among others, were found to have been handed over without execution of registry.

Meanwhile, the Noida authority has failed to issue recovery notices to builders who are not paying land dues, despite the authority having to collect around Rs11,000 crore in dues.

In October 2017, the authority’s chief executive officer (CEO), Alok Tandon, had issued an order directing his staff to issue recovery notices (RC) to builders for the collection of land due. However, even after four months, the authority is yet to issue a recovery notice to defaulting builders.

“We have sent several reminders to builders to pay land dues. We are yet to issue recovery notices to those who are repeatedly not paying our dues,” Tandon said.

Buyers are of the view that if the Noida authority also starts taking tough action against builders, the situation will change and all problems in the realty sector can be resolved.

“If the Noida authority starts issuing recovery notices, we will start seizing assets of the builders to recover the government’s money,” Singh said.

The Confederation of Real Estate Developers Association of India (CREDAI), a builders’ lobby group, said that it will ask the errant builders to get occupancy certificates issued and ensure registry of the flats as per the law.

“It is a wrong precedent to offer possession without execution of registry. Both the builders and buyers are at fault and the government is losing a large amount of revenue. We will discuss the issue in our meetings and persuade the builders not to offer possession without the registry. Also, buyers should not move in without registry,” Subodh Goyal, chairman of the legal committee and treasurer of CREDAI, said.

First Published: Feb 11, 2018 22:37 IST