As buyers struggle to get their flats registered due to non-payment of dues and delays by builders, the Noida, Greater Noida and Yamuna Expressway authorities have proposed a fast-track scheme for grant of NOCs for finished units even if the entire project is yet to be completed – a move that may benefit at least 50,000 buyers.
Under the proposal, which would come into effect after approval by the UP government, the NOC (No Objection Certificate) for registry of these flats would be granted after payment of proportionate dues and a 10 per cent surcharge by the builder.
In Greater Noida alone, up to 20,000 flat buyers may benefit immediately from the scheme, while the number is even higher in Noida where a large number of flats have been completed but are yet to be registered due to lack of NOC from the authorities. The number of such flats is relatively smaller in the Yamuna Expressway area, but the total number would exceed 50,000 flats across the three areas.
In many cases, the buyers have already started living in these flats and are awaiting registration of the flats.
“The Boards of all three authorities — Noida Authority, Greater Noida Authority and the Yamuna Expressway Authority — have approved the proposal and it will be now sent to the UP government. It (the scheme) will come into effect after the UP Government approves it,” the Greater Noida Authority CEO Deepak Agarwal told PTI.
He said that 17,000-20,000 flat-buyers can immediately benefit under this scheme as these flats are already completed.
Under the proposal, the builder will have to pay the proportionate dues — total dues for the entire project divided by the number of completed flats — and a 10 per cent additional charge to get the NOC.
Under current rules, NOCs are granted only after payment of all dues, including for the land and other charges for the entire project.
However, the proposed scheme may allow grant of NOC even for a single flat after payment of the proportionate dues and the additional 10 per cent charge.
A number of builders in the region are facing the heat of the buyers and the general public in the wake of years of delay in grant of possession.
While many builders have begun giving possession for the completed units, even if the entire project is not completed, the registration of flats is not happening in those cases.
This is causing difficulties for flat-buyers in getting benefits like electricity and water connections and they have to manage with alternatives like water tankers and generators.
As per a new survey by industry body Assocham, the demand for new projects across the country is currently low while new launches have come to a trickle, marked by lack of consumer confidence and cash deficit of the builders.
The demand for new launches has come down by over 50-60 per cent in Delhi-NCR and Mumbai while it is lesser by about 40-45 per cent in Hyderabad and Chennai.
In Bengaluru, the activity has come to a total standstill, first by the demolition drive and then by Cauvery dispute agitation, the survey found.
“Customers are preferably looking for ready to move in property rather than going for under construction property but not many properties fall in this category,” Assocham said.
The unsold inventory pressure in NCR is the highest in comparison to other cities. The region’s residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30 per cent of the units under construction, adds the survey.
The ticket price for 3-bedroom, 2 BHK and single room flats has seen a correction by 30 per cent in Noida, 25 per cent in Gurgaon and 15 per cent in some key areas of Delhi, yet the demand stays subdued.