In a relief to about 50,000 homebuyers here, the district administration on Wednesday asked them to pay 5% stamp duty and sign an ‘agreement to lease’ document for flats they were given possession of by the developer without a completion certificate.
While the ‘agreement to lease’ will be treated as a legal document for homebuyers, who were considered illegal occupants in the absence of registry, it also means that they cannot resell their flat till the developer gets a no-objection certificate or completion certificate from Noida Authority.
The idea, said officials, is to raise revenue to meet the annual target of ₹2,532 crore.
Uttar Pradesh Stamp and Registration Department Assistant Inspector General S.K. Singh said, “With registration of sub-lease agreement by paying 5% duty, homebuyers will gain a legal document for their properties. They will also gain tax benefits and there will be no burden on them even if the Stamp and Registration Department escalates circle rates. The circle rate will be applied as per the date of registration of the sub-lease agreement.”
“We hope this will bring relief to end users and the real estate sector, which is reeling under a slump. At the same time, the Stamp and Registration Department will gain a handsome amount, which is around ₹1,300 crore,” Mr. Singh added. Ace Group CMD Ajay Chaudhary said, “This decision will bring a huge relief to homebuyers who are living in their homes without registry.”
