Noida: The deadlock between the builders and development authorities regarding the interest rates of land dues is calculated by homeowners living in cities waiting to receive the registrar of their apartments for years. But they’re not getting different solutions.
Builders claim they won’t be able to pay the bills until they are satisfied with the Supreme Court, which is taking up this case, comes out with a decision.
Homebuyers are anxious because, without any official registry, they don’t have legal rights to their homes and cannot transfer the property to others.
Greater Noida, and the Yamuna Expressway areas that were delivered to purchasers
The number of apartments in Noida, Greater Noida, and the Yamuna Expressway areas that were delivered to purchasers but are yet for registration is estimated to be between 2 and 2.5 lakh in the range of estimations of the officials in charge of development.
Developers are in debt of around 35,000 crores to three authorities. Most of that, about 20,000 crores, is in debt to the Noida Authority.
In the lead-up to state elections in the spring of this year, all parties pledged to find solutions to the deadlock in the registry. It was reported that the Noida Extension Flat Owners Welfare Association (NEFOWA) had sought statements from candidates on their promises to voters.
NEFOWA president Abhishek Kumar said
This was of little importance. NEFOWA president Abhishek Kumar said only the judiciary could offer a resolution in this case. Builders have claimed they will pay according to the Supreme court order. Once that is delivered, we hope the builders will clear their rights, and the registry of flats will eventually start.
There is a different scenario that he explains. This could be another reason of delaying the matter on some excuse or the other. In these years, the authorities have not been able to take suitable action against builders,” he said.
Residents want to know if authorities can allocate the land to builders after paying 10% of the costs. This is a widely controversial policy that caused fees for realtors to increase when they landed large land parcels. Then they ask why they shouldn’t permit the registration of flats by buyers who have paid their dues.
Raj Kumar, a resident of Supertech Ecovillage 2, Says
Raj Kumar, a resident of Supertech Ecovillage 2, says, in the last four years, I have been running after the builder and the Noida Authority for the registry of my flat. The issue has become more complicated since the developer was declared insolvent. An IRP (interim resolution professional) appointed by the National Company Law Tribunal manages the project.
Homebuyers are being made to suffer from the developer’s fault. Without the registry, we are not even the legal owners of our flats.
As with other residents of sports cities, Sanwarjeet Dasoundi, a resident of Gaur Sports Wood, Sector 79, and chairman of the 7X Sports City Foundation isn’t sure when he will be able to declare his home. The sports cities are more complicated because licensing conditions force the construction of sporting facilities.
More than, 3,000 flats have been delivered in five group housing societies
More than, 3,000 flats have been delivered in five group housing societies. Buyers have already paid stamp duty, but the registry of flats is not completed,” Dasoundi says.
He said, I checked the documents and found that our builder has cleared all residential fees. But as a sports city is yet to be developed in the compound in keeping with the original layout, a registry cannot be done. During last year, the state government promised to take suitable action, but nothing has been happened.
There is the option of paying for the fees for a house at a given time and then filling out the registries on their behalf; however, residents say that most builders aren’t prepared for that, despite paying stamp duty.
Builders say authorities have imposed exorbitant penalties that have added to the debt to absurd amounts.
Supreme Court lawyer, Kumar Mihir, Says
A Supreme Court lawyer, Kumar Mihir, says, “In the Amrapali case, issues were raised about the amount that needed to be paid to the authority. During the hearing, it was disclosed that the authority has charged not only interest on dues but also a penal interest.
Ace Group, filed an application saying that the two authorities – Noida and Greater Noida – should not be allowed to charge disciplinary interests of 23%.”
Mihir says that in June 2020, the Supreme Court ruled that the authorities could not charge more than 8 percent from any builder. This order applied to more than 110 projects in Noida and Greater Noida.
The Noida Authority petitioned that 8% was a random figure and opposed it,” Mihir adds.
The judge issued a new order in July, stating that builders must pay the fees under the SBI MCLR (marginal cost of lending), effective from January 2020.
In November 2020, both authorities filed an application seeking a recall of all these orders. The hearings and arguments started in 2021 in the Supreme Court.
Noida Authority CEO Ritu Maheshwari Said
Noida Authority CEO Ritu Maheshwari, also the Additional Charge of Greater Noida, is sticking with the policy that registries are not allowed until the dues are paid. It will look like we favor builders who have not paid dues running into crores. It cannot be allowed,” she said.
Officials have stated that homebuyers pay stamp duty payments are vital to the civic services they offer. The authorities provide municipal amenities and carry out development work through this income.
Developers own RS 35,000 million to the three Authorities in GB Nagar. According to estimates, the figure is the amount of approx. 20000 crores for Noida Authority and about Rs 7000 crore in GNIDA and YEIDA.