Noida Developers To Face Penalty For Delayed Property Registration
Registering flats has been mandatory for all the group housing societies with the Noida Authority for years. However, there are still many defaulters. The Gautam Budh Nagar stamps and registration department estimates that there are over 30,000 flats in their jurisdiction that haven’t been registered with the authority but have been handed over to homebuyers. This is a big loss to the authority because a single registry brings in about five per cent of the property cost towards stamp fee.
To put an end to such defaults, the authority has now decided to impose a penalty on builders if they delay the execution of registry of their flats in group housing projects that are ready for possession.
Process and penalty
A developer is liable to execute the sub-lease deed of a flat to a buyer within 15 months of receiving the Occupation Certificate (OC). For every day of delay after the end of the 15-month deadline, a penalty of Rs 50 per day will be levied for flats sized under 100 square metre (1076.39 sq ft) and Rs 100 per day for flats bigger than 100 sqm.
Industry body Confederation of Real Estate Developers Association of India (Credai) has welcomed the move given that it helps them transfer the property title. However, homebuyers aren’t too happy about it. Delayed project deliveries have added to their financial woes and the mounting expenses owing to stamp duty weighs heavy on them. In fact, homebuyers, as well as the Credai, has written to the state government demanding that registries be executed at the circle rate that was prevalent last year. These flats were supposed to be delivered last year. Buyers say that the brunt of a hike in circle rates should not be borne by them because they expected the possession in 2012-13 but were allotted the unit many years later.
A high-level committee headed by the housing and urban affairs secretary was constituted to look into issues that have affected the property sector. The 11-member committee is in agreement with buyers and has written to the Uttar Pradesh government seeking to implement this recommendation.