Noida authority: One-time lease rent scheme will continue
“We are happy that the authority accepted our demand but we do not agree with the 15 years clause”.noida Updated: Dec 28, 2017 13:17 IST
The Noida authority in its decision on Wednesday allowed owners of all kinds of plots to make one-time payment of lease rent, officials said.
Residents have been demanding the one-time lease rent payment scheme since October 2017, when the authority stopped this facility for plot owners. However, the land, where third party rights are involved, (group housing plots, where a builder has further sublet the property to a buyer), one-time lease rent payment was continued. It meant flat buyers continue to pay one-time lease rent.
Earlier, the authority had warned the plot owners, excluding group housing societies, to either deposit one-time lease rent by September 2017, or pay annually. Since October 1, plot owners were allowed to deposit their lease rent annually. Now under pressure from residents, the authority has adopted its old prevalent scheme under which a plot owner had the choice either to deposit lease rent one-time or annually.
“We have again decided to allow all kinds of property owners to pay one-time lease rent. Now they will have to pay lease rent for 15 years at one go unlike in the past when they were paying one-time lease rent for 11 years,” said Alok Tandon, chief executive officer of the Noida authority.
In Noida, plots or flats are sold on lease hold basis instead of free hold basis. In lease hold, a plot or flat is owned by a purchaser for 99 years. And 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) lease rent for various categories of properties. Categories are residential land, group housing land, industrial and commercial land. For residential property, 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.
For example if 500 flats are built on 10,000 square metres group housing land and the 10,000 sq m land cost (as per the allotment rate) is ₹500 crore, then each flat owner will have to share 1% amount of ₹500 crore land cost lease rent.
Land owners welcomed the decision. “We are happy that the authority accepted our demand but we do not agree with the 15 years clause. We will demand to continue with the 11 years scheme only because a property owner will have to pay more,” said AN Dhawan, general secretary of the federation of Noida RWAs, a residents’ body.