Uttar Pradesh Government Allow Registry Of Delayed Flats At Original Circle Rates

Homebuyers, for a long time, have been demanding that registry to be done at the original circle rate. Currently, if the builder delivers a flat after a five-year delay, then the Uttar Pradesh stamp and registration department impose a stamp fee based on the circle rate of the year of the registry.

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Uttar Pradesh Government Allow Registry Of Delayed Flats At Original Circle Rates

11-member high-level committee headed by secretary, Union ministry of housing and urban affairs, has recommended that the Uttar Pradesh government allow registry of a flat at the circle rate prevalent when possession of the dwelling unit was promised by the builder.

Homebuyers, for a long time, have been demanding that registry to be done at the original circle rate. Currently, if the builder delivers a flat after a five-year delay, then the Uttar Pradesh stamp and registration department impose a stamp fee based on the circle rate of the year of the registry. The practice increases the financial burden on the homebuyer, who, due to no fault of his own, simply received the flat late.

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The UP government will soon take a decision on the recommendations made by the high-level committee formed on June 18, 2018. The Noida, Greater Noida and Yamuna Expressway authorities’ chief executive officers, top officials as well as national building construction corporation officials are members of this committee. The committee has
made 11 recommendations to the ministry of finance, the UP government and the industrial authorities to solve homebuyers’ long pending issues.

The committee’s recommendations include waiving off stamp fee for homebuyers, the formation of a ‘zero period policy’, additional funding to builders to finish stuck projects, legal assistance to aggrieved homebuyers and a separate Real Estate Regulatory Authority (RERA) for Noida and Greater Noida, among others, with the aim to solve issues faced by the real estate sector in this region.

Zero period refers to the time period in which the government cannot impose an interest on land dues to be paid by the builder. Builders take housing land under the 90:10 scheme. The builder pays 10% at the time of allotment and the remaining 90% is paid in instalments over eight years. If the builder defaults on instalments, the authority imposes a 12% interest on the principal amount, which runs into crores of rupees. Builders have been
demanding the waiver of interest for the period when construction was affected in the area due to a legal dispute between farmers and the government that allotted land to builders.

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Builders have asked that the period when construction was affected be declared ‘zero-period’ so that they need not pay any interest. The high-level committee has also recommended that the suggestions made by the Uttar Pradesh government’s three ministers’ panel should be implemented to address homebuyers’ issues. The ministers’ panel that was formed in April 2017 has also recommended that the state government should formulate a ‘uniform zero period policy’ for all realty projects, which were affected due to various legal battles over housing land.

The UP government will very soon take decisions on the suggestions and recommendations made by the high-level committee and the suggestions made by the ministers’ panel. I have written to the chief minister to take a decision on it at the earliest to solve homebuyers’ issues, UP excise minister and in-charge of Gautam Budh Nagar district, said.

As per the committee’s recommendations, if 30% of the total housing project land is affected by legal disputes in different courts then the government should give a 100% interest waiver if 20-30% of the land is affected by the dispute, the waiver should be 50%, and if 10-20% of the land is affected by the dispute, the waiver should be 25%.

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Once the UP government takes a decision on the recommendations, the Noida, Greater Noida and the Yamuna Express authorities will implement the same to provide relief to buyers. Let the state government take a decision and then we will follow the same, chief executive officer of the Greater Noida authority, said.

Source Link- http://paper.hindustantimes.com/

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