G Noida authorities gives penalty waiver for delay in registry

By Bricksnwall | 2024-08-03

The initiative to waive the penalty was made to grow the registration of homebuyers. The decision is projected to help at least 40,000 purchasers across 60 housing projects.

GREATER NOIDA: The Greater Noida government will not impose any penalties on homeowners who were unable to complete the registry of their homes since the developers failed to pay dues even after occupancy certificates were provided, officials said on Friday. The relief will last for six months.

These certificates certify that the facility is supplied with basic necessities including sanitation, water, and electricity.

The initiative to waive the penalty was made to grow the registration of homebuyers. The decision is projected to help at least 40,000 homebuyers in 60 housing developments, they said.

"There is an urgent need for the permanent abolition of these unjustifiable taxes, particularly because many homebuyers have already paid the stamp duty years ago. We would write again to the authorities to eliminate it for all in the future, even if six months have passed', said Shashank Mishra, a flat buyer.

According to the guidelines, the authorities will not provide registry approval for units in a housing complex if the developers fail to pay their financial obligations.

The penalty waiver, which is applicable for six months beginning July 22, 2024, aims to make as many property registrations as feasible. A plan for it was approved at the authority's board meeting in June 2024.

According to the Greater Noida Authority's 2018 rule, homebuyers have one year to complete the registry without incurring any penalties after the essential licenses are received. After this period, a fine of ₹50 per day is enforced for flats under 100 sqm and ₹100 per day for larger flats.

Partial occupancy certificates were awarded for around 60 developments, and authority to register residential units was first granted. However, due to nonpayment of dues, the authorities later suspended the registry for these projects.

Thousands of homeowners were unable to complete the registry of their properties due to the developers' unpaid dues, resulting in substantial penalties.

The 2018 directive, which was intended to discourage investors from buying flats without registration and then selling them at higher prices, had an unintended consequence for real homeowners.

In December 2023, the Uttar Pradesh government announced a policy to resuscitate stalled projects. As a result, developers of over 60 projects consented to the policy and deposited 25% of their net dues with the authority.

Following that, registry permissions were provided in proportion to the deposited funds.

Previously granted registry rights resulted in late costs ranging from ₹2 lakh to ₹2.5 lakh per unit, discouraging homeowners from completing the registry process.

Earlier this year, homebuyers' associations requested the government to waive these excessive penalties. The authority replied by submitting a proposal at its board meeting on June 15, deciding to waive the penalty for the following six months. The official order was issued on Thursday, with the waiver effective on July 22.

"There is an urgent need for the permanent abolition of these unjustifiable taxes, particularly because many homebuyers have already paid the stamp duty years ago. We would write again to the authorities to eliminate it for all in the future, even if six months have passed', said Shashank Mishra, a flat buyer.

Source: Hindustan Time