Thousands of homebuyers are still waiting to register their flats due to a deadlock because of dues between promoters and authorities. To end flat registration delay in Noida and Greater Noida, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has sought a direction and guidelines from the state government.
As per an estimate, more than 50,000 homebuyers are waiting to get their flats registered in the district. In the absence of a payment plan by the local authorities, the developers in the district are not able to clear their dues and the registration of many completed flats is stuck for several months now.
Balvinder Kumar, member, UP-RERA says, “This is a serious problem in the Gautam Budh Nagar district. The problem is overdue and many builders have to pay money to authorities. Builders are not able to get OC and CC and registration don’t happen because of that. If builder have four mandatory certificates then we have allowed possession to flat buyers. So in pursuant to that order possession is given, but buyers are not able to register their flats.”
Kumar further explains, “We are trying to resolve this problem and have requested the state government to issue some direction so that buyers can get their flats registered as early as possible.”
Developers feel that a higher interest rate is being calculated and in absence of clear guidelines there is delay in registry of flats.
RK Arora, president, NAREDCO UP, says, “Authorities in Noida, GNIDA, YEIDA are not allowing registration due to their pending dues as calculating higher interest rate. The SC order of reducing interest rate still not implemented by authorities. Completion also pending at authority levels. These are major concerns because of which registries are delayed.”
According to experts some buyers also delay registration as by the time they get possession of their flats they are already exhausted most of their liquidity, so they try to buy some time in order to manage registration fee.
Prasoon Chauhan, founder & CEO, BlackOpal Group, adds, “The liquidity issue in the realty sector is affecting the proper functioning as we have witnessed a re-routing of the money collected for registration to other activities. Buyers are also moving into homes and postponing the huge expense of registration. However, it is advised to complete all the required formalities for registrations before shifting or moving into a property.”
In January this year, considering the long delay, the Noida Authority had allowed private developers to pay lease rent dues in instalments. The move was expected to help around 30,000 homebuyers who are waiting to get their properties registered.
Nitesh Sharma, a buyer in one of Greater Noida West high-rise societies, says, “I got possession of this flat 8-9 months back, but I am still waiting to register my flat. There is a long delay, and I am not able to sell this property and upgrade to a new bigger space that I wanted to do now. I hope this deadlock ends, and we can register our properties so that we can sell or upgrade our units.”
Now UP-RERA is working with the state government to find a solution to this issue so that completed flats get registered and a deadlock between authorities and promoters can come to an end. Many buyers are unable to sell their properties due to non-registration and some are forced to sell much below the market rates to exist such properties.