The Noida Authority has approved a proposal to convert all property in the city from leasehold to freehold, which has brought some cheer to residents, investors and the real-estate sector that has been in a slump.
The authority will now send the proposal to the Uttar Pradesh government for its final nod.
Government sources said the decision to convert Noida properties to freehold was taken shortly after the Yogi Adityanath-led government came to power in the State. “Now it is a just mere formality. The top brass had directed the Noida Authority months ago to approve the proposal and send it to the government,” said a senior government official.
All plots or flats in Noida are currently sold on a leasehold basis, which means the ownership is for a period of 90 years. The sale and transfer of leasehold properties requires the authority’s approval.
Residents’ welfare associations, Noida industrialists’ bodies and other groups have been demanding the conversion of all properties into freehold for some time.
Report on impact
Noida Authority CEO Alok Tandon said the administration had commissioned a survey to assess the impact of converting properties from leasehold to freehold.
“Later, an internal committee of the authority also deliberated on the survey report. on Friday, the Board decided to send a report to the UP government for further approval,” said Mr. Tandon.
The report also studied whether the conversion, which can be done for a fee that is a fraction of the value of the property, would help the authority generate more revenue.
“With conversion, the Noida Authority stands to earn around ₹3,000 crore,” Mr. Tandon said.
