Property Market: Builders in UP are giving flats to homebuyers without registration process. This worrying trend has come to the fore. Due to this, the state government is losing revenue worth crores of rupees. Homebuyers are also facing financial loss due to this.
Property Market: Builders in UP are giving flats to homebuyers without registration process. This worrying trend has come to the fore. Due to this, the state government is losing revenue worth crores of rupees. Homebuyers are also facing financial loss due to this.
What is the matter?
Many builders are giving possession of flats to buyers but are not getting it registered. Builders only obtain Occupation Certificate (OC) and Completion Certificate (CC), but ignore the registration process to save stamp duty.
It is mandatory to get the flat registered under the Uttar Pradesh Apartment Act and Stamp Act 1899. But builders are violating this law and are not getting the registration done even after taking full money from the buyers. Due to this, the state government is suffering huge losses. For example, in Ghaziabad, about 600 flats were handed over without registration, causing a loss of stamp duty of an estimated Rs 12,000 crore.
Government’s strict stance
The Uttar Pradesh government has taken this problem seriously and has directed the local development authorities to prepare a list of such builders. A ready report of the case has been sought from the Ghaziabad Development Authority (GDA). Earlier in 2018 also, the Ghaziabad district administration had registered an FIR against three builders who handed over flats to buyers without completing the registration process.
Homebuyers are also troubled
Homebuyers are suffering the most due to non-registration. In the absence of registration, the builder reserves the right to maintain the flat and charges arbitrary maintenance fees. After registration, this responsibility is given to the Apartment Owners Association (AOA) or Residents Welfare Association (RWA), which usually charge less.
Increased electricity prices
Builders buy electricity from the government at subsidized rates and sell it to residents at higher prices. After registration, the builder does not get this benefit and direct electricity supply starts to the residents.
Buyers need to take care
Before buying a flat, make sure that the builder completes the registration process. Without registration, you are deprived of legal rights. You may be forced to pay more maintenance and electricity charges. There may be problems regarding property ownership in the future. Buyers buying flats should be cautious and ask the builder to complete the registration process. Make sure that along with the Occupation Certificate and Completion Certificate, the flat is also legally registered.
Related Articles:-
What are the major changes happening in the new Direct Tax Code 2025?
