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

HT Estates - - FRONT PAGE - Vinod Ra­jput 100 crore 60 crore 6 crore) crore. 60

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.

SU­NIL GHOSH

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