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Noida: Builders get notices over illegal possession of flats

Builders cannot offer possession without execution of registration because the government loses huge revenue

noida Updated: Jan 21, 2018 22:45 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida,builder,flats
A notice has been issued to Amrapali Sapphire.(Sunil Ghosh/HT Photo)

The stamps and registration department of Gautam Budh Nagar has started issuing notices to builders who have offered possession of flats to homebuyers without executing the registration of property.

As per the notice, the builder cannot offer possession without execution of registration because the government loses huge revenue. In the notice, builders are directed either to provide a list of all flat buyers who have shifted into flats without registration or face legal action.

The builders have been directed to provide the list in 15 days along with a copy of the agreement to sale (or lease).

The notice also states that the builder will also specify the reason as to why the registration is pending and why they had allowed illegal possession of flats.

“Once they (builders) submit a list of the buyers and the reason for not executing the registration, we will decide on the action to be taken against the builders or the buyers. We have, from January 18, started issuing notices to builders, who have illegally offered possession to buyers. The notices will be sent to all those who have violated norms and offered possession with executing the registration,” SK Singh, assistant inspector general of the UP stamp and registration department in Noida, said.

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.

Officials said that the government is losing out nearly Rs700 crore in stamp fee due to non-execution of registry of the flats.

“We charge 5% of total flat cost as the stamp duty. Now, since the buyers are not getting registration executed, we are bearing a huge loss in the revenue annually,” Singh said.

A committee headed by the then additional district magistrate (finance) in 2016 had carried out a survey, which found that around 25,000 homebuyers have occupied flats in various group housing complexes flouting norms. These 25,000 flats are located in Noida and Greater Noida, the survey revealed.

The district administration said if homebuyers are facing problems in getting flats registered because of a delay at the builder’s end in obtaining occupancy certificates, then they can buy the stamps to evade action. “They have an option of buying stamp papers of the value of the duty payable by them even if the builder has not obtained an OC. They can use this option,” Singh said.

To begin with, the department has issued a notice to Amrapali Sapphire housing complex located in Sector 45. The department has issued such notices in the past too but there was no follow through.

“All housing projects violating norms will be issued notices in the time to come,” Singh said.

Shiv Priya, director of Amrapali Group, said, “We have submitted our resolution plan to revive our stuck housing projects in the ongoing case in the Supreme Court. The Supreme Court has issued notices to all stakeholders on January 17. Buyers, as well as the stamps department, should wait for some time. There will be a solution to all issues once the case is settled. The notice by the stamps department will be of no value once the SC notice is served.”

First Published: Jan 21, 2018 22:45 IST