THAT’S A PRETTY HEFTY PENALTY

Noida res­i­dents with un­reg­is­tered prop­er­ties have been cry­ing foul over huge fines im­posed on them by the Author­ity, says Jee­van Prakash Sharma

HT Estates - - Front Page -

Can reg­is­ter­ing an apart­ment cost three times more than its pur­chase price? Strangely enough, the an­swer is yes for the 3500plus flat-own­ers liv­ing in co­op­er­a­tive and wel­fare hous­ing so­ci­eties in Noida who have yet to get their prop­er­ties reg­is­tered. They have been di­rected by the Noida Author­ity to pay up for homes they had bought in the ’80s to 2000 and not reg­is­tered. The amount as penalty, cal­cu­lated on the ba­sis of the cur­rent circle rates, is in most cases al­most three times that of the prop­er­ties bought at much lower prices.

B S Sandhu, who was al­lot­ted his 180 square me­tre flat in 1982 for R2.5 lakh, has been asked to pay R3 lakh as penalty and R4.5 lakh as stamp duty for reg­is­tra­tion, which adds up to a whop­ping R7.5 lakh. Pay­ment im­me­di­ately af­ter pur­chase at 5% of the cost of the flat would have come to just R12,500.

Peo­ple who have been af­fected ob­ject to the Noida Author­ity’s de­ci­sion to charge penalty from 1995 (see box) and cal­cu­la­tion of the stamp duty on the ba­sis of pre­vail­ing circle rates. They ar­gue that the is­sue of reg­is­tra­tion of flats was un­der lit­i­ga­tion first in the Al­la­habad High Court and then in the Supreme Court from 2000 to 2010 and dur­ing this pe­riod the Author­ity was not ready to sign the tri­par­tite deed for reg­is­tra­tion (with Noida Author­ity as first party, hous­ing so­ci­ety as sec­ond and the flat owner as third party).

Those who had not got their prop­er­ties reg­is­tered had been granted six months from July 27, 2011 to Jan­uary 25, 2012, by the Supreme Court to ex­e­cute the tri­par­tite deed. No penalty would have been charged for this pe­riod. “We clar­ify that if the tri­par­tite deed is not ex­e­cuted within the pe­riod of six months, the law or in­struc­tions would take their own course and Noida would be en­ti­tled to levy such charge as it was en­ti­tled to,” the Supreme Court or­der had stated.

“The court hasn’t said that penalty would be charged from 1995. The Noida Author­ity is im­ple­ment­ing the or­der in an ar­bi­trary man­ner. When I had ap­proached it sev­eral times be­tween 2000 and 2010 to sign a tri­par­tite deed, why did the Noida Author­ity refuse, say­ing that the is­sue was in court?,” asks Col (retd) Ke­sar Singh Sanghera, a 61-year-old res­i­dent of Sec­tor 34.

Mem­bers of var­i­ous RWAs also say they would pre­fer it if penalty is charged af­ter Jan­uary 25, 2012.

Where’s the cer­tifi­cate?

There’s an­other rea­son for the anger of more than 1000 flat own­ers of var­i­ous some co-op­er­a­tive so­ci­eties in Sec­tor 62 . They blame Noida for not de­liv­er­ing the com­ple­tion cer­tifi­cates and hav­ing an ‘am­bigu­ous stand’ on the re­sale of apart­ments.

Ac­cord­ing to SM Singh, pres­i­dent, Sec­tor 62 RWA, “There are co-op­er­a­tive group hous­ing so­ci­eties which have been wait­ing for com­ple­tion cer­tifi­cates since 2000 and the Author­ity has been in­dif­fer­ent to their de­mands. In the ab­sence of that, no tri­par­tite deed can be ex­e­cuted. Now if they give the com­ple­tion cer­tifi­cate to­day, why should the flat own­ers pay the penalty from 2000?”

Res­i­dents who bought flats in the sec­ondary mar­ket say that they have writ­ten sev­eral times to the Author­ity to clar­ify its stand on re­sale of flats to en­able them to ex­e­cute the tri­par­tite deed. “We didn’t hear any­thing from them. Now they are ask­ing for penalty,” com­plaints SM Singh.

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