Why 2.5 lakh flats’ registries are stuck in Noida

March 12, 2023
Why 2.5 lakh flats' registries are stuck in Noida

NOIDA: A stalemate between development authorities and builders over Rs 39,500-crore land dues has kept nearly 2.5 lakh homebuyers in the district waiting for the registry of their flats for years, and they are no closer to a solution.

For long, homebuyers had pinned hopes on the apex court judgment related to the rate of land dues, anticipating that builders will clear their dues as per the court order and the registry of flats will finally start. They say despite paying 90-95% for their units, they still don’t have legal rights over the flats and can’t sell them without a registry.

The builders’ lobby, meanwhile, insists that the authorities have imposed excessive penalty amounts on them after the Supreme Court in November last year recalled its June 2020 order that capped the rate of interest at 8% for the delay in payment of land dues by real estate firms. Only a few—six have shown interest and two applied with Noida Authority—for the reschedulement policy, approved by the Noida and Greater Noida authorities in January.

Builders, cumulatively, owe nearly Rs 35,000 crore to the Noida, Greater Noida and Yamuna authorities. A bulk of this, Rs 26,000 crore, is due to Noida Authority. Of 116 projects in Noida, dues have not been cleared by 90. Nearly 135 of 195 projects in Greater Noida have not cleared dues.

Ashok Vardhan, who bought a flat at Mahagun Mirabella in Noida’s Sector 79, in 2018 and got possession in 2020, said the registry of the flat remains a distant dream. “I am not alone. Over 3,000 homebuyers in five high-rise apartments in the sector’s Sports City project are awaiting registry. There are no dues on any individual project, but builders failed to develop sports facilities as per the layout. So registries are stuck,” Vardhan said.

Without the registry, homebuyerscan’t re-selling flats or form any residents’ association. “In case of any mishap, police will blame homebuyers for living in a society without a registry. They treat us like intruders,” he added.

Fed up with delays, Sports City residents wrote to PM Narendra Modi last year.

Rohit Mishra, a resident of Apex Golf Avenue in Greater Noida’s Sector 1, is also awaiting the registry of his flat for the past three years. “I paid the full amount and bought the flat on the builder’s promise that an occupation certificate (OC) would be obtained shortly. But that did not happen. There is a problem with Sports City projects, and different agencies have different versions,” Mishra said.
Why 2.5 lakh flats' registries are stuck in NoidaIn January 2023, the residents met the CEO at a public hearing. “We received a letter last week saying our case is pending at planning department. Unless it clears the file, not much can be done for the registries of our flats. While we are stuck between the builder and the authority, banks are sending us notices to submit the registry against the loan taken by us. Banks say if we do not submit the registry papers, they will levy an additional 2% interest on the loan,” he said.

Several homebuyers claimed to have paid the stamp duty but still unable to get their flats registered. Residents said builders were not ready to pay financial dues per flat and execute registries for each unit.

Karunakar Biswal, a homebuyer at Kasa Greens 1 in Greater Noida’s Sector 16, said he bought the apartment in November 2014 and got possession in July 2020. “I have purchased the stamp papers for the registry but the builder has not even applied for the OC. Of the 9 towers at the project, OC for 6 has been received. So, of 850 flats in the society, only 350 flats have the approval for a registry. Whenever we write to the builders, there is no response,” said Biswal.

Homebuyers in Noida Extension have been holding protests for many months but the builders have remained unmoved. Recently, a delegation of homebuyers along with Jewar MLA Dhirendra Singh met CM Yogi Adityanath, who assured relief. However, nothing has happened yet.

The authorities insist registries cannot be done without the builders clearing their dues. “Builders will never clear the dues if we delink registry and land dues,” said Noida Authority additional CEO Prabhash Kumar.

UP industrial development minister Nand Gopal Gupta, however, told TOI the homebuyers’ issue would be resolved soon. “The government along with the authorities is actively working in this direction. The homebuyers are our first priority,” he said.

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