• Regulatory
• 3 min read

Strange that buyers who have paid in full can’t register flats because of govt-builder dispute: Allahabad HC

Homebuyers at Ajnara Homes in Greater Noida West are facing a registration standstill due to unpaid dues, prompting the Allahabad High Court to seek solutions from involved authorities. APV Realty Limited owes upwards of Rs 60 crore, which has created a backlog where approximately 75,000 flats remain unregistered in Noida and Greater Noida. The matter is scheduled for another court hearing on October 30.

In a petition before the high court in April this year, a group of 20 residents submitted that even after paying the full amount and taking possession, they were still not the sole owners of their flats. Shyam Sagar Meher, a resident and one of the petitioners, said they could not sell their flats, and even when a sale goes through, the developer demands exorbitant transfer charges.

In Noida and Greater Noida, group-housing land is leased by govt to a builder, and a buyer’s title flows through a tripartite sub-lease deed in which Noida and Greater Noida authorities are a third signatory alongside the buyer and the seller.

After GNIDA submitted that it had held back registries because the developer, APV Realty Limited, was yet to clear Rs 60 crore — which went up to Rs 84 crore with GST and penal interest, the court asked the principal secretary, urban planning, GNIDA and UP-Rera to come up with a concerted plan of action.

On Oct 7, a division bench of the high court comprising Justices Siddhartha Varma and Ram Manohar Narayan Mishra observed, “We find that a strange situation has arisen because the developer has, after selling flats to the petitioners, not deposited the premium rent, yearly rent, yearly lease rent, the time extension fees, etc to the Greater Noida Authority… This not only deprived the petitioners of their legal rights but also deprived the state (UP govt) of the stamp duty on the registration of lease deeds (and) under such circumstances, we are of the firm view that the action taken by the state (govt) has to be brought on record.”

The bench said, “...we are of the firm view that the action taken by the state (govt) has to be brought on record. The learned additional chief standing counsel Ambarish Shukla, who appears for respondent no 1 (GNIDA), will take specific instructions from the principal secretary (urban planning) as to what action has been taken. Also, it should be brought on record the action that might have been taken by the RERA.”

Possession of around 2,200 flats in Ajnara Homes was given in 2018, but so far only registries of 1,592 units have been completed.

Advocate and homebuyer Satveer Dalal told TOI that since group-housing land is leased by govt to a builder, if a builder does not clear its dues, Noida and Greater Noida Authority often holds back registries, and buyers who have paid in full and moved in are left without registered ownership. “A rehabilitation committee headed by Amitabh Kant also recommended separating the buyers’ registry from the recovery of dues from builders,” Dalal said. He added that this was not an issue with just one flat, as homebuyer groups put the number of such unregistered flats at around 75,000 across Noida and Greater Noida.

While the builder did not respond to TOI’s queries, an employee, without wishing to be named, said, “The developer has no money to pay GNIDA.”

The court is scheduled to hear the case next on Oct 30.