Noida to start accepting payment of one-time lease rent
Residents have been demanding for one-time lease rent payment scheme since October 1, 2017, when the authority had stopped this facility for plot owners.noida Updated: Jan 18, 2018 22:30 IST
The Noida authority chief executive officer (CEO) Alok Tandon issued an order enabling the authority staff to accept an initial one-time payment of 15 years’ lease rent, as per new rules that were approved in the last board meeting. Earlier, the one-time payment of lease rent was done on an 11-year basis.
On December 27, 2017, the Noida authority in its 193rd board meeting decided to allow one-time payment of lease rent for all categories of land across the city. Residents have been demanding for one-time lease rent payment scheme since October 1, 2017, when the authority had stopped this facility for plot owners.
“The board decided to allow submission of one-time lease rent. But to implement that decision of the board, the Noida CEO’s order was needed. On Wednesday, the CEO issued an order in this regard. It means now residents or any property owner can make a one-time payment of lease rent. However, he or she will have to pay lease rent of 15 years instead of 11 years,” Manmohan Mishra, financial controller of the Noida authority, said.
In Noida, plots or flats are sold on leasehold basis instead of freehold basis. In leasehold, a plot or flat is owned by the purchaser for 99 years. The buyer has to pay a certain amount of lease rent for the property. Whereas in freehold property, no lease rent is required to be paid by a buyer.
The Noida authority charges 1-2.5% of total property cost as lease rent for various categories of properties. For residential properties, the authority charges 1% lease rent and for properties excluding residential, 2.5% lease rent has to be paid. Lease rent is charged on total land cost. Land cost is calculated on the basis of allotment rate. The allotment rate is the price at which the government allots land to a buyer or builder.
In cases of land sale where third party rights are involved (group housing plots, where a builder has further sub-leased the property to a buyer), one-time lease rent payment continued. It meant that flat buyers and plot owners were affected by the decision.
Earlier, the authority had directed the plot owners, excluding group housings, to either deposit one-time lease rent by September 2017. Since October 1, 2017, plot owners were allowed to deposit the lease rent annually.
Now, under pressure from residents, the authority has adopted its old scheme, under which a plot owner has the choice of either making the payment in one go or annually.
“After I heard about this decision of board meeting in December, I had wanted to pay one-time lease rent but could not because it was not implemented. Now I can pay it,” Sabir Ali of Sector 53 said.