NEW DELHI: A new policy approved by the administrators of Noida and Greater Noida will unlock the gates for registry of nearly 40,000 flats in the twin cities that are currently stuck for no fault of the buyers.
Registrations have not happened even after many buyers have got possession of flats because real estate companies haven’t cleared their dues for land allotted to them, and consequently , been unable to procure a noobjection certificate. According to existing rules, an NoC for registration of sale deeds is issued only after all dues on land price and other charges related to an entire housing project are cleared by the developer. In other words, NoCs now are only issued en bloc.
The Project Settlement Policy , or exit policy, approved by the Noida, Greater Noida and the Yamuna Expressway Authorities on October 21, changes this by allowing individual buyers to get NoCs for registry if a builder clears proportionate dues against one flat along with a 10% additional charge that the respective Authority will levy.
Since most developers have not cleared their dues, this provision will come as a major relief to thousands of homebuyers who currently face the peculiar situation of having received possession of flats after years of delay and even occupation certificates but not the NoCs to register them. It will also allow those wishing to sell their new flats to do so once the sale deed is made. Unless a flat is registered in the owner’s name, it cannot be sold. If it is sold through power of attorney , the buyer cannot get a bank loan. As a result, the seller does not get a good price.
How to get an NoC for just one flat?
Suppose a developer has launched 500 apartments on a 5-acre plot that it bought for Rs 50 lakh and paid Rs 25 lakh to the respective Authority . The proportionate dues here are Rs 5 lakh per apartment. According to the existing rule, the developer must pay the remaining Rs 25 lakh to get an NoC. But under the new poli cy, a payment of Rs 5.50 lakh (including 10% additional levy) can get an NoC for one flat (This is a simple example. Dues includes other charges too, but land price is the major component).
Deepak Agarwal, CEO of the Greater Noida Authority , said, “This will help reduce the buyers’ hardship,“ he said. The exit policy will come into force when the UP government gives its stamp of approval. Buyers who are still paying their dues to builders or those in the process of taking possession after paying the last instalment can ask developers to get an NoC for the flat using that money and make an adjustment in the payment. Money deposited by buyers will go to an escrow account that each developer will open for each housing project.That money will automatically move to the respective Authority’s account for settlement of dues.