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
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.