So the Stamp Duty charges in Noida and Greater Noida are going up from 5% to 7%? We have been closely following the development from last few weeks and we suspect there is more than what meets the eye.
There is no doubt that NOIDA is known for messing up the things with the best of their efforts. First the Okhla – NGT issues was poorly handled and then builders are left scot-free without any monitoring of big projects. The end result is that the entire area is worst affected by the slowdown in real estate and buyers are shying away from Noida’s market.
What’s up around Stamp Duty hike?
Since last few months, the revenue department, as well as the Noida Authority, were hard pressing builders and homebuyers to complete the registration of their apartments. After the Okhla Bird Sanctuary – NGT issue was resolved, around 26 developers were issued Occupancy Certificate (OC). Despite having the OC and in some cases the stamp papers from homebuyers, developers were just not getting the registry done. All notices to developers were falling on deaf ears and then came the news of Cabinet approving stamp duty increase from existing 5% to 7%.
kow much would it cost if stamp duty is hiked: Stamp duty calculator for Apartments in Noida
Why would Authorities come up with an idea of stamp duty increase?
An additional burden of 2% stamp duty baffled all homebuyers and possibly some builders too. Protests, representation to roll back the increased stamp duty happened but no use. Everyone is clueless and panicked. Registrar office is full of homebuyers trying to register their houses before the hike is officially notified. Yes, you heard is right, it is yet to be notified. Why would any government take a chance when they are so close to elections and give the opposition parties a chance to take political mileage?
Without a formal notification, the purpose of the government agencies seems to have solved and the buyers are running from pillar to post for the incompetence of the authorities and the greed of builders.
The revenue department issued a clarification that the Stamp papers purchased at the current rate (5%) before 31st march would be valid for 4 months. Was this all a stunt to meet year ending collection by the state government?
Then comes the Samaritan builders
Some of the builders are trying to be a Super Hero and are ready to take the burden of increased stamp duty. Why would they do so? read on…. The developers owe Noida Authority crores of rupees as land dues. The Authority would not allow the registry of the apartment and wouldn’t issue transfer memorandum until the part dues are cleared by the builder. More can be read on this here: No Occupancy Certificate? Lease Deed has the answer
The builder doesn’t want to pay crores of rupees to Noida and would rather pay up 2% extra for increased in stamp duty (only if it ever happens). He would continue enjoying your hard earned money and would continue to put you at the risk of such hasty decisions by authorities from time to time.
What should a homebuyer do?
If you are not at fault, file a consumer complaint with NCDRC and ensure that builder pays for the deficiency in services. Had the builder delivered on time, you would not have to pay for such increase in circle rates and stamp duty increase (if it ever happens). Your builder has usurped your hard earned money and you are the one running from pillar to post.
Note: This is just our point of view. We advise you to take an informed decision while pursuing the registration of your apartment. In case your apartments are ready but the developer is not getting the registry done, ensure that he is liable to pay all such charges.
Want to know your existing stamp duty value? Calculate here ~ Stamp duty calculator for Apartments in Noida