District Admin Offers Relief To Noida Buyers Living In Projects Without Occupancy Certificates
There is finally some respite for about 50,000 Noida and Greater Noida homebuyers, who have been living in units where the project has yet to receive an occupancy certificate (OC). These homebuyers can now enter into an "agreement to sub-lease" with the developer by paying a five per cent stamp duty, the Gautam Budh Nagar Administration has said. This agreement to sub-lease would work as a legal proof of property ownership for such homebuyer. The move would also help the district administration recover Rs 1,300 crore as revenue.
Early this year, 24 developers in the region were warned of strict action if they failed to obtain OCs for their projects within a specified time period. First-information reports (FIRs) was filed against these developers, who had started giving possession of flats to homebuyers without executing registry.
Impact on developers
After the FIR was filed against these developers, they have been facing difficulties in taking loans from banks to further execute and complete their ongoing projects. According to the Confederation of Real Estate Developers of India (Credai), this has brought the possession process of as many as 24,000 apartments in Noida to a standstill.
Impact on homebuyers
An OC is one of the most important certification a developer must possess when selling a property. This certificate proves that this property is legal and has been constructed by the prior permission of the government. A developer has to give the OC to every homebuyer along with the possession letter. It is only then that you are considered the legal owner of the apartment.
Now, what can a homebuyer do in case the developer doesn’t have an OC?
Apart from the sub-lease-agreement facility that the administration has announced, there are some other legal ways to raise your voice against this issue.
*In case your developer does not possess an OC, you can take a legal action against him. You could bring this to the notice of your state’s Real Estate Regulatory Authority (RERA).
*File a Right-To-Information report asking for the legality of the project.
*You could also ask for compensation and move the Consumer Court in case the developer delays in giving the OC.
With inputs from Housing News