NOIDA: Homebuyers linked to New Era Flat Owners Association (NEFOWA) have opposed a proposal by YEIDA and GNIDA making it mandatory to pay the entire stamp duty while booking a flat.
Buyers expressed concern that their money would get stuck should the builder turned a defaulter and left the project midway. Earlier, buyers paid 10% of the flat cost as the booking amount and made an agreement with the builder on a 100-rupee stamp paper.
On Sept 9, UP chief secretary Manoj Kumar Singh had directed the three industrial bodies — Noida, GNIDA, and YEIDA — to take this effective step. The move aims to address the issue of realtors selling properties to multiple buyers through unregistered agreements, leading to long litigation and distress for property consumers. The Noida and Greater Noida authorities are expected to implement the proposal soon.
Officials said that the move stems from residents’ complaints that builders have tweaked the agreements to harass the homebuyer or cancel the project. It is meant to protect the interests of the homebuyers, they said.
An official went on to add that the UP govt allows property sales through ‘registered agreements’ because unregistered agreements result in huge revenue losses with each sale.
However, homebuyers decried the move, stating that paying the entire stamp duty at the time of the flat booking for a lease agreement is not justifiable.
“This is a completely unjust and arbitrary decision that will increase the financial problems of the homebuyer. Where on one hand there is no guarantee of when the house/flat will be available, then how far is it justified to deposit the total stamp duty of the value of the flat beforehand? It would have been better if the agreement to lease was made on 10% of the value of the flat instead of the entire flat price,” said Abhishek Kumar, president of NEFOWA.
Deepankar Kumar, another homebuyer, said that officials should have first consulted buyers on the matter and should have only implemented the move after taking suggestions. “There are many flaws in the current order, like how will it be ensured that the project will be delivered by the builder or the homebuyer’s money is safe and guaranteed possession, etc. The brunt of all this will ultimately fall on the homebuyers,” he said.
Dinkar Pandey, a resident of Greater Noida West, cited the example of neighbouring Haryana, which has fixed a minimum fee for lease agreements as a better solution. “This will protect the interests of the homebuyers and the flat will also be registered,” said Pandey.
The authorities’ final decision is awaited, subject to govt approval of the proposal, officials said.
