Noida admin to register FIRs against errant builders

On Wednesday, district magistrate BN Singh asked deputy registrars 1, 2 and 3 and Sadar to identify all such flats and builders to take legal action against them.

The Gautam Budh Nagar district administration will register FIRs against builders who have handed over newly constructed flats to buyers without executing registry.

even builders — Amrapali Group, Divine India Private limited, Assotech, Victory Cross Road, Realtors Private Limited , AGC Ajnara Homes and Gardenia Aims Glory — have handed over flats to buyers without executing their registry. (Virendra Singh Gosain/HT PHOTO)

On Wednesday, district magistrate BN Singh asked deputy registrars 1, 2 and 3 and Sadar to identify all such flats and builders to take action against them.

According to the DM’s letter, the officials have been asked to physically go and identify newly built buildings which have been handed over without paying stamp duty for registry of property. These officials have been asked to take photographs of such properties to submit as proof in the report.

The letter was sent after Singh came to know that seven builders — Amrapali Group, Divine India Private limited, Assotech, Victory Cross Road, Realtors Private Limited , AGC Ajnara Homes and Gardenia Aims Glory — have handed over flats to buyers without executing their registry.

“The seven builders have offered possession to 10,318 homebuyers without execution registry and this has caused a revenue loss of ₹334.13 crore to the state government. Under Section 64 of the UP Stamps Act, the stamp and registration department should file an FIR against such builders. The FIR will be filed after sending a week’s notice to the builders,” BN Singh said.

“We have asked all the sub-registrars to identify and take appropriate action against builders who are not following rules and regulations. The stamp and registration department has been asked inspect housing projects where buyers have shifted into flats without completing registry,” Singh said.

Recently, the administration officials, along with the stamp and registration staff, held a meeting with the builders. Builders were directed to not give possession of flats without completing the registry.

“Such acts are causing a revenue loss to the UP government. All such builders will face strict legal action,” Singh said.

Singh has asked the stamp and registration department to take action under Section 17 of Registration Act, 1908, and Section 13 of the UP Apartment (promotion of construction ownership and maintenance) Act, 2010.

Buyers will not be facing any action from the administration. “No buyer will face any action as it is the fault of the builder if flats are handed over without completing the necessary formalities. Buyers need not panic or worry. This action is only meant for erring builders,” Singh said.

Gitamber Anand, president, CREDAI, a lobby group of builders, said, “The authority should allow buyers to pay the lease rent because, currently, the market is bad and builders are not in a position to pay the total lease rent of the land and the project. There is also GST on that.
Without paying the lease rent, we can’t get the occupancy certificates. This compulsion will delay the process of handing over flats.”