UP To File FIRs Against Builders For Property Registration Failure
Days after news became public that the Ghaziabad Administration has issued notices to 41 real estate developers for handing over possession of properties to buyers without registering them, the Uttar Pradesh government has in a first decided to file first information reports (FIRs) against realtors for the offence.
Once an FIR is filed against an offender, the police have to start legal action. After the initial probe, they are legally bound to file a charge-sheet. Based on the findings of the charge-sheet, the matter might be sent to the court to decide on further action.
Official records show several developers in cities such as Noida, Greater Noida and Ghaziabad, the areas that border the national capital, have handed over apartments to homebuyers without registering them. According to media reports, as many as 12,000 properties have not been registered by the 41 realtors who got notices from the Ghaziabad administration while these units have already been handed over to buyers. In Noida, about 16,200 units have been allotted to buyers without proper registration.
It is worth mentioning here that under the Registration Act, 1908, it is mandatory to register a property every time there is a change in its ownership title. Across India, one per cent of the property value is paid as the registration charge. The money thus earned is a major source of revenue for states given that land is a state subject. Evasion of stamp duty and registration charges by developers has adversely impacted the state’s revenue collection.
Sample this. While a revenue target of Rs 2,522 crore has been earmarked for Noida for the financial year 2017-2018, only Rs 1,394.23 crore has been recovered so far. A major cause of this is realtors’ unwillingness to register property. Official data show unregistered properties forced the state government to lose nearly Rs 475 crore in the Gautam Buddha Nagar alone. Despite notices from the government, and despite collecting the amount from buyers, many developers in Noida have not paid the authorities their due.
"We were getting a number of complaints that even after taking the money, the builders were not doing registry. We have got a letter in this regard from the Noida district magistrate. After its review, we found the customers were befooled as they could not get their properties registered," UP Stamp and Registration Minister Nand Gopal Gupta Nandi was quoted by PTI as saying.
With inputs from Housing News