‘Author­ity vic­tim­is­ing peo­ple’

HT Estates - - Front Page -

“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.

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