The two percentage point increase in stamp duty will put immediate impact on Noida home buyers who booked flats years ago.
The two percentage point increase in stamp duty, announced earlier this year but kept in abeyance, is likely to come into effect any day next week. Its immediate impact will be on home buyers who booked flats years ago but have just started getting possession after the resolution of the ecological quandary around the demarcation of a buffer zone around the Okhla bird sanctuary.
Thousands of flats in Noida and Greater Noida (west), earlier known as Noida Extension, will be delivered over the next few months, but the cost of registry will be 7% instead of 5%. The government hasn’t made it clear which date it will implement it from or whether buyers who had booked flats earlier would be exempted. The stamp and registry department expects a surge in the number of applications.
Chandra Shekhar, an advocate who deals in registry of properties, said the proposed revision of circle rates has also created panic among home buyers. “Registering a property is a time-taking process. The buyers and builders have to sign an agreement. The Noida Authority has to give a transfer certificate. The buyers then have to submit the documents and stamp duty,” he said.
There are over 30,000 registries pending mainly due to delay on the part of developers, who are yet to make payments to Noida Authority. According to sources, without payment, the Authority does not issue completion certification to developers, without which, the stamp and registration department does not register properties.
Sources said that the notification has been intentionally delayed to register maximum deeds. Developers, on the other hand however, said the hike will negatively impact real estate in GB Nagar.
The hike will put an extra Rs 1-2 lakh burden on each buyer, while the revenue department expects to earn an additional Rs 100 crore.
With thousands of flats routinely delivered late in GB Nagar, especially those affected by the Okhla Bird Sanctuary row, it will be a double whammy for many buyers.
Angry buyers accused a nexus between Noida Authority, developers and district administration for their misery. Developers said the decision will negatively impact GB Nagar real estate.
It is pertinent to mention that Noida and Greater Noida are government by the UP Industrial Development Act, 1976. Following the directions of UP chief secretary Alok Ranjan, a proposal was moved by the department to hike stamp duty in these areas, which are government by the Act.