Buyers warned against registering flats delivered by defaulting builders

The body said homebuyers will be made to pay the dues themselves if they register the flat, and a police case may also be filed.

Apartment buyers should not register their flats if the builder concerned has not cleared financial dues with the Noida authority, the body has warned, and warned that buyers will be subject to pay the dues themselves if they register the apartment, and face an FIR as well.

A sub-lease deed is crucial to have the property title transfer from the builder to a buyer. Since builders have not been able to clear the dues, buyers have been struggling to get the sub-lease deed made. (HT File)

The move comes after a probe by the authority in June 2019 established that sub-lease or registrations of 119 apartments by different developers were executed without the builder having cleared dues owed to the Noida authority.

The probe found that these registries were done as the builder and the clerk of the authority were hand-in-glove. After the findings of the investigation, the authority filed FIRs against the builder, buyers and the clerk, in the 119 cases. The authority has also suspended the clerk involved in the matter. The FIRs were filed under the Indian Penal Code’s sections 420 and 467 for forgery and cheating.

A builder is required to clear dues to before a sub-lease deed is executed with the buyer. The tripartite sub-lease deed (registry) takes place between the buyer, builder and authority, after all dues are cleared. A sub-lease deed is crucial to have the property title transfer from the builder to a buyer.

Since builders have not been able to clear the dues, buyers have been struggling to get the sub-lease deed made.

“We have warned buyers that if they are involved in such kinds of irregularity, the authority will have to take legal action and recover the flat’s respective dues from buyer. We have now made it compulsory for buyers to reach the authority’s Sector 6 office and sign to be eligible for the registry,” said Rajesh Kumar, officer on special duty, Noida authority.

The authority’s group-housing department will check whether financial dues are cleared or not, and will then allow the buyer to sign a register before the sub-lease deed is executed.

“The clerk did not do their job properly in 119 cases, and registries took place without dues being cleared. But now it is the duty of the buyer to ensure that registry is not done without clearing financial dues,” Kumar said