Order For AOAs & Builders Not To Charge Owners Extra For Flat Sale
More than 120 builders and apartment owners’ associations (AOAs) received notices from the Greater Noida Industrial Development Authority (GNIDA). GNIDA warned them not to charge any other amount except maintenance fees from flat owners who wish to sell their properties.
Authorities got complaints from residents during selling flats that builders of AOAs want lakhs of amounts prior to issuing a no-objection certificate to the residents.
Officers even said this act is completely illegal and counted as a category of corruption.
Surendra Singh, the CEO of GNIDA, said, “The authority has sent a warning letter to at least 120 builders and apartment owners’ associations, warning of strict legal action against them if any amount, other than maintenance fee, is demanded.”
He also received complaints from the residents of a society in Greater Noida West during the last public hearing. The complaint was that the builder demanded around 2 lakh rupees to issue NOCs for people who wanted to sell their flats.
The authority instructed its builder wing to issue AOA representatives and builders a warning letter against such cases.
Furthermore, suppose any AOA representative doesn’t issue NOC within 15 days of the application or doesn’t inform about the non-issuance. In that case, it will be considered approved and hence allow the flat transfer based on Section 39 of the UP Apartment Act.
GNIDA, based on the group housing scheme, provides builders with plots to develop a project. After the completion of construction and attaining its certificate, builders execute a tripartite sub-lease deed between the buyer, authority and the builder. After that, owners can sell their flats to third parties.
However, for the smooth process of this procedure, GNIDA issues a TM (transfer memorandum). Any builder or AOA needs to provide a NOC while applying the TM.
Again, the president of NEFOWA (Noida Extension Flat Owners Welfare Association), Abhishek Kumar, said, “It is sheer extortion and nothing less. We come across such cases frequently. It is good that the authority has threatened to book such offenders under the Prevention of Corruption Act.”
