Partial completion but with basic amenities is legal
Noida Authority will be issuing occupancy certificates in proportion to the funds deposited by developers for land HOW IT WORKS
Coming to the aid of homebuyers facing delays in completion of residential projects, Noida Authority has tweaked its existing housing norms. Rules for issuing occupancy certificates ( OC) for buildings have been relaxed. This means builders will now be able to easily get the OC even if they haven’t fully paid up their land dues. An OC for their building enables buyers to get their flats registered.
About 50,000 buyers who have paid 100% apartment costs have not been able to get their prop- erties registered for the last three to four years because the Authority was not issuing OCs as cash-strapped builders failed to pay land dues. “The authority will issue OC in proportion to the funds a realtor has deposited for land on which the residential project is developed. Earlier the realtor was supposed to first clear the remaining dues to be eligible for OC,” says Vipin Gaur, general manager (group housing), Noida Authority.
Noida Authority had given land to realtors on installment basis. They paid 10% at the time of allotment and were required to pay the remaining amount in installments at a certain time. Many of them have, however, defaulted saying they were unable to sell unsold inventory.
But home buyers have their objections. “The Sapphire project in Sector 45 has 11 residential towers. The authority’s new plan will allow the builder to obtain OC for a certain number ( one or two) towers, the residents of which can get their registry done. The majority of buyers will continue to suffer. So we object to this new plan,” says RK Shrivastava, a retired naval official and a home buyer.
However, some Authority officials feel this plan will work out only where 20% to If a builder has 100 acres of land worth ₹ and has paid ₹ in land costs till date, the Authority will deduct (₹ 10% of this ₹
The ₹ 54 crore left will be calculated as total cost of 54 acres land and OC will be issued for apartments on 54 acres
30% home buyers have shifted to a group housing society. “This plan will not work for a group housing society where 100% or 90% home buyers have shifted because they all want to get their registry done without further delay. The new plan can work in societies, where only 100 have shifted out of 500. But what is the guarantee that a realtor will pay the remaining land dues later,” they say. A temporary occupation certificate is subject to cancellation. The terminology (temporary occupancy certificate) does not exist in any rule book of any authority, says S K Pal, a Supreme Court lawyer.
Recently, the term ‘partial’ completion certificate was incorporated inthe UP Apartment Act and building byelaws. Under this, a certificate is issued to the builder to facilitate tower wise completion. This comes under Section 4 (5) of the UP Apartment Act and has to be read along with Section 5 that defines the rights of the apartment owner. It states that an apartment cannot be sold in isolation and has to be handed over with basic amenities such as parking, fire safety, community centre etc.
“At the time of providing partial completion certificate, the authority has to ensure that the common facilities are completed before the developer decides to hand over the tower for possession,” he says.
“Buyers should keep in mind that the lifespan of a sanction plan is five years, which at best can be extended for two years along with some fine. The entire project has to be completed by the builder within six to seven years. A builder has to apply for a completion certificate from the authority before the validity of a sanction plan lapses,” he says. Also, the final completion certificate that a builder receives includes references to the dates of all the partial completion certificates and a declaration that the entire project is complete,” says Pal.