Today in New Delhi, India
Sep 20, 2018-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Noida: FIR to be lodged against builders giving flat possession without registry

The decision is a result of an inquiry by Gautam Budh Nagar district magistrate BN Singh. Singh had suggested that FIRs should be registered against such builders.

noida Updated: Mar 16, 2018 22:43 IST
Preety Acharya
Preety Acharya
Hindustan Times
Noida,RERA,possession
UP Stamp and civil aviation minister Nand Gopal Gupta has confirmed that builders will be facing legal action if they do not follow the process of registration of flats before delivering the same to buyers.(Representational picture by Sunil Ghosh/HT)

The stamp and registration department of Uttar Pradesh has decided to file FIRs against all builders who have given possession of flats to buyers without executing registry.

The decision is a result of an inquiry by Gautam Budh Nagar district magistrate BN Singh. Singh had suggested that FIRs should be registered against such builders.

So far, the stamps and registration department has filed FIRs against 15 builders in Noida and nine in Greater Noida for allowing possession of flats in 24 housing projects without paying stamp duty to the government.

UP Stamp and civil aviation minister Nand Gopal Gupta has confirmed that builders will be facing legal action if they do not follow the process of registration of flats before delivering the same to buyers.

“Not only have consumers suffered due to the builders’ actions, but the government has also suffered a loss in revenue. FIRs will be lodged against builders for offering possession without proper registration,” Gupta said.

According to the minister’s office, the government was informed that in Gautam Budh Nagar district itself, 16,197 flats have been allocated to buyers without registration. The government has suffered a revenue loss of nearly Rs 475 crore on account of this.

The builders were issued notices earlier, but they failed to start the process of registration.

“The government has been receiving complaints from buyers regarding builders’ reluctance to execute registration of flats. Buyers have complained that while they are willing to get flats registered, builders are putting it off for a various reasons,” the minister’s office said.

A revenue target of Rs 2,522 crore has been set for Gautam Budh Nagar district for the financial year 2017-2018, of which Rs 1,394.23 crore has been collected so far.

“It’s a good decision by the government to take on builders who are causing revenue loss to the government. Buyers also have been facing trouble because of builders. I am happy that the government has accepted my suggestion of filing FIRs against builders who are not executing registry of flats,” BN Singh said.

Meanwhile, principal secretary (stamp and registration) Himanshu Kumar issued a letter on Friday to all the district magistrates, asking them to identify builders who are giving possession of flats without registry and file an FIR against such builders under Indian Registration Act 1908, Uttar Pradesh Apartment Act 2010 and Indian Stamp Act 1899.

However, the Confederation of Real Estate Developers Association of India (CREDAI), a builders’ lobby group, is not happy with the government’s decision.

“The government’s decision to lodge an FIR against the builder is not going to help anyone. Builders couldn’t get completion certificates because of government policies only. We are not very happy about the decision as I think we didn’t manage to give our account properly. We will request the government to resolve the issue amicably. We will,again, present our side of the problems to the officials,” said Amit Modi, vice president, CREDAI (west UP).

First Published: Mar 16, 2018 22:43 IST