Authority plans legal action against erring builders, buyers for living in flats without OC
Noida buyers are caught between the devil and the deep sea. Even after paying the full amount towards their flats to the developer, they are being hounded by the Noida Authority for living in unregistered flats. Homebuyers said they are suffering for no fault of theirs. “We are at the receiving end even after paying for the flat in full. The builder has failed to obtain OC and get registry execution done, not us,” said Manoj Kumar Sharma, a buyer. These homebuyers could not get registration done because their builders had failed to obtain occupancy certificates (OC). A registry cannot be executed without an OC. The Gautam Budh Nagar district administration has directed its stamp and registration department to identify developers who had not obtained OC and executed registries. “I have directed sub-registrars to conduct a survey and submit a report on the number of group housing towers and the exact number of buyers who moved into housing units without execution of registry of flats,” said S.K. Singh, Assistant Inspector General (AIG), UP Stamp and Registration Department, Noida. “Our survey will find out homebuyers and builders, who have not executed their registry. We will take action on a case to case basis,” said N.P. Singh, District Magistrate Gautam Budh Nagar. As per the Noida Authority’s estimate, around 50,000 homebuyers have moved into flats without registering them. As per norms, during execution of registry of a property, a buyer has to pay 5% of the total cost of the flat as stamp duty to the Government. If buyers shift into their new flats without registry, the Government fails to get the revenue. The department said it will take legal action against erring buyers and builders who had given possession of flats flouting norms. As per UP Apartment Act, 2010, a builder cannot offer possession of a flat to a buyer without obtaining occupancy certificate for a building. According to the Noida Authority, once a building’s civil work is ready, a builder has to obtain clearances from fire department, develop required civic facilities before applying for OC. “Once the application of the builder is with us for OC. We check all necessary documents. We also issue a public notice in newspapers inviting objections from buyers. We address buyers’ objections if there is any and issue OC,” said S.C. Gaur, Chief Architect and Town Planner of the Noida Authority. Issuance of occupation certificate is an important step as it enables a builder to offer possession of housing unit to a buyer and also execute property registration. Without an occupation Certificate, a builder can neither offer possession to the buyer nor execute property registration of a housing unit. The authority, which would otherwise take a few months in issuing OC, is now quick in its job, thanks to Chief Minister Akhilesh Yadav stepping in for distraught buyers, who have been staging protests for delay in completion of residential projects. As per Noida’s building by-laws occupancy certificate, which is also called completion certificate, is issued after detailed investigation by the planning department. A buyer can shift to his dwelling unit and also execute registry only after OC. The Noida Authority also issues temporary occupation certificate (TOC) to a building for a certain period with some riders. But with TOC a buyer can take possession of dwelling unit for limited time, but cannot execute registry, which is a means to transfer property title. On March 2, the Uttar Pradesh Government in a cabinet decision increased the property registration fee from existing 5 per cent of total property cost to 7 per cent in Noida and Greater noida bringing it on par with other districts in the state. However, the hike will be effective only when the UP Governor issues a notification which is yet to happen.
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