The Noida Authority, on November 1, 2018, gave its in-principle approval to the conversion of land holding rights, from ‘leasehold’ to ‘freehold’, subject to a nod from the Uttar Pradesh government, according to officials. The Authority also agreed to take feedback from the public, over allowing floor-wise sales of houses built in residential areas, they said. The decisions, which could have a significant impact on real estate and property in the city adjoining the national capital, were taken during the Authority’s 195th board meeting.
“The proposal was brought for discussion in the meeting and the board gave an in-principle nod, for converting the land holding rights to freehold. The Authority’s chief executive officer and chairman, Alok Tandon, has been authorised by the board, to now send the proposal to the state government for its approval,” a senior official said. In Noida, plots or flats are sold on leasehold basis instead of freehold basis. In leasehold, a plot or flat is owned by the purchaser for 99 years. The buyer has to pay a certain amount of lease rent for the property. In freehold property, no lease rent is required to be paid by a buyer.
Several industry and trade bodies, residents’ welfare associations and citizens had staged a protest in the city on October 4, 2018, demanding conversion of land holding rights. The protestors, who were joined by Gautam Buddh Nagar MP Mahesh Sharma, had accused the Noida Authority of having ‘anti-people’ policies. Among other decisions taken during the meeting, the board, which last met in April 2018, also approved setting up an office of the Real Estate Regulatory Authority in the city, on the 450-sq-metre plot in Sector 44.
The board also approved a proposal for the e-auction of residential plots, which were left out during the initial allotment. The new scheme would be published this month, according to an official statement. It also allowed construction of stilt parking in residential areas, where the plot size is less than 125 sq metres, the statement said. Earlier, this facility was available only for single plots over 125 sq meters.
The statement said if a builder does not give the registry of houses within one year of the lease deed, houses of 100 sq metres will be fined Rs 50 per day and those above 100 sq metres will be fined Rs 100 per day. It noted that flat buyers who live without getting their houses registered, even after the issuance of a Completion Certificate to the builder, cause loss to the revenue department.
In cases of acquisition of farm land, the authority is liable to provide its owners with five per cent developed land in a populated area. Due to non-availability of land with the Authority, it was proposed to the board that the farm land owners be given monetary compensation, at the rate of Rs 22,000 per sq metre (in compliance with a Supreme Court order) instead of the five per cent developed land, a proposal that was accepted by the board, the statement said. The board also gave its approval for creating a large multi-purpose area, designated for various social functions including weddings at Sector 151A, it said.