‘Authority victimising people’
“So if the society constructs flats and allots them to the members, the latter don’t need to pay stamp duty for ownership of the flat. This amounts to buying something which already belongs to them. The Noida Authority, however, wanted us to sign a tripartite deed for the sale of flats. This means that every member had to pay stamp duty as per the prevailing market rate,” said one of the petitioners.
RWA representatives then moved the Allahabad High court, which gave a ruling in their favour in 2004. Aggrieved by the judgment, the UP government filed a petition in the Supreme Court, overruled the Allahabad High Court judgment on September 10, 2011.
However, there seems to be no end to the problems of the RWAs and they have now locked horns over another issue. The flat owners of Arun Vihar Resident’s Welfare Association have once again approached Allahabad High Court, alleg- ing that the SC judgment has been misinterpreted by the Authority. “According to our interpretation, since the Noida Authority leased out land to a society and the society sub-leased the flats to the members, the members should execute a tripartite deed, ie, ‘sub-lease deed for superstructures of residential units and sub-lease deed for land.’ But the Authority is compelling us to execute ‘sale-deed for superstructure and sub-lease deed for land’,” says 82-year-old Brig (retd) Gur Dayal, a flat owner in Sector 37, who spearheaded the legal battle.
He says that the fallout of this ‘wrong interpretation’ would be that flat owners would be forced to pay stamp duty as per the current circle rates when according to Article 63 of the Stamp Act (UP) and as per a 2009 SC judgment, the duty payable on a sub-lease deed would be 5% of the transaction cost (original purchase price of flat) and not the prevailing market/circle rate.”
Most of the flat owners are yet to take a call on the next course of action. They say if they don’t go for execution of tripartite deed, they don’t get ownership of the flat and without ownership, they can’t sell.