UP govt has asked development authorities to prepare a list of builders who have handed over flats to buyers on the basis of occupation certificates but without executing registries.
This, officials said, has caused significant loss to the state exchequer in terms of stamp duty. Section 13 of the UP Apartment Act and provisions of the Stamp Act, 1899, make it mandatory for any developer to get their flats registered before handing over possession to them
“But many builders, who have secured occupancy and completion certificates, are handing over flats through agreement of sale despite their registries pending. The govt is losing out on a lot of money like this. According to an estimate, some 600 flats in Ghaziabad have been handed to owners without registries, causing a loss of Rs 12,000 crore. The housing and urban planning department has now sought details of such flats. We are in the process of preparing a report,” a GDA official said.In 2018, the district administration got FIRs lodged against three developers for failing to get flats and properties registered with the govt even after receiving full payment from buyers and handing over possession.
Ashish Kumar, a homebuyer, alleged that developers had ulterior motives in delaying the registration of flats.
“That’s because a developer gets to maintain the society until much of it is registered with the govt, charging a hefty amount from residents and raking in profits. Once the registry is done, the AOA or RWA takes over maintenance of the society. Developers also earn profit from inflated power bills. They take electricity connections at govt rate and supply it to residents for a higher price. But after registry, the buyer gets ownership rights of a flat. The builder stands to lose in such cases,” said Ashish Kumar, a homebuyer.
