Co-op Flat Owners in Noida to register Flats as per New Circle Rates
There are 150 societies in the district of Gautam Budh Nagar, Noida and about 25,000 flat owners. However, only 40% owners in the district have got their properties registered. The societies registered under Indian Societies Registration Act would have to pay 5% duty whereas those societies that are registered under Uttar Pradesh Cooperative Housing Society Act are bound to pay 2.5% duty. Supreme Court ordered that the deeds shall be executed before March 9, failing which a daily penalty of Rs 100 shall be imposed on each flat owner.
The apex court had on September 10 given six months to members of housing societies for execution of the tripartite deeds (among authorities, societies and allottees) on the basis of normal stamp duty without charging any extra amount or penalty. However, the flat owners moved fresh applications complaining that the authorities were recovering the stamp duty on the basis of the present market rates, which had increased phenomenally, whereas the original constructions were made in 1992.
According to counsel Abha Sharma appearing for several flat owners, the decision would cause a liability ranging from Rs 2 lakh to Rs 3 lakh in stamp duty, which was the original cost of construction of houses in 1992. The high registration fees are a result of the real estate boom of the last decade. For instance, a three-bedroom flat in Noida that cost Rs 11 lakh just 10 years ago now costs at least Rs 60 lakh.
According to the Uttar Pradesh stamp department, the judgment would affect around 15,000 flat owners and leave the government richer by roughly Rs 100 crore. A special bench of justices Dalveer Bhandari and HS Bedi passed the direction while dismissing applications by Army Welfare Housing Organisation and others challenging the Noida Authority’s decision to recover stamp duty on the basis of current rates.
The registration amount of individual flats would vary across Noida, as circle rates of posh colonies in the city are higher. If owners fail to register their houses within the stipulated deadline of six months, Noida Authority will impose penalty on them.
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