by THO
GREATER NOIDA: The Greater Noida authority will not levy any penalty against the homebuyers who couldn’t execute the registry of their apartments because the developers failed to clear dues, even after the occupancy certificates were issued, officials said on Friday. The relief will last six months.
These certificates indicate that the building is equipped with civic needs such as sanitation, water, and electricity.
The move to waive off penalty has been undertaken to increase the registry of homebuyers. The decision is expected to benefit at least 40,000 homebuyers in 60 housing projects, they added.
“The Greater Noida authority has taken the decision to waive off penalty for the delay in registry to protect the rights of homebuyers. The authority has given six months time so that the buyers can execute the registry without paying the penalty,” said Saumya Srivastava, additional chief executive officer, Greater Noida authority.
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As per rules, the authority does not issue registry permission for apartments in a housing complex if the developers fail to clear the financial dues.
The penalty waiver, effective for six months starting July 22, 2024, aims to facilitate as many property registrations as possible. A proposal regarding it was approved in the authority’s board meeting in June, 2024.
According to the Greater Noida authority’s 2018 order, homebuyers are given one year to execute the registry without any penalty once necessary permissions are obtained. After this duration, a ₹50 per day fine is imposed for flats under 100 square metres (sqm) and ₹100 per day for larger flats.
In approximately 60 projects, partial occupancy certificates were issued, and permission for registry of residential units was initially granted. However, due to non-payment of dues, the authority subsequently stopped the registry in these projects.
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Thousands of homebuyers had been unable to execute the registry of their properties due to the developers’ unpaid dues, resulting in significant penalty.
The 2018 order, aimed to curb investors who bought flats without registering them and later sold them at higher prices, inadvertently impacted genuine homebuyers.
In December 2023, the Uttar Pradesh government introduced a policy to revive stalled projects. Consequently, developers of over 60 projects agreed to the policy and deposited 25% of the net dues with the authority.
Following this, registry permissions were granted in proportion to the amounts deposited.
However, since the registry permissions were already given in the past, it led to the imposition of late fees of ₹2 lakh to ₹ 2.5 lakh on each unit, deterring homebuyers from executing the registry.
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Earlier this year, homebuyers’ associations urged the authority to waive these undue penalties. The authority responded by tabling a proposal during its board meeting on June 15, deciding to waive the penalties for next six months. The official order was issued on Thursday, with the waiver starting on July 22.
“There is a dire need for a permanent removal of these unreasonable fees, highlighting that many homebuyers had already deposited the stamp duty years ago. We will write again to the authority to abolish it for all in future even after six months will pass,” said Shashank Mishra, an apartment buyer.
