Once revised, allottees will have to pay 10% of land cost at the time of registration of property and another 20% after allotment. The balance 70% will be collected in 14 instalments over a period of seven years. Currently, developers in Greater Noida have to pay a mere 5% at the time of registration of property and 5% towards allotment, while the balance amount is collected over 12 years, including a two-year moratorium.
According to experts, the land allotment policy, which was revised in 2009 by then Mayawati-led BSP government, is the cause of the builder-buyer impasse seen today. Before the land allotment policy was revised, allottees had to deposit 30% of the land cost with the authority. However, after the revision of the policy, builders had to pay only 10% (in two equal instalments) and were even offered a two-year moratorium, during which they did not pay anything to the authority.
Sources also said once the policy is revised by the Greater Noida Authority, the two-year holiday enjoyed by the allottees is likely to be done away with.
In June this year, Noida Authority changed its allotment policy to 40% deposit at the time of allotment, including 10% at registration and balance in four subsequent years in eight semi-annual instalments at a compound interest rate of 11%. YEIDA in the same month also approved a revised allotment policy for different categories of land use.
Meanwhile, the Greater Noida Authority is also likely to propose to the Board, cancellation of allotment of the property of all allottees who will not register their land by March 31, 2018.
Sources said non-registration has been causing the Authority a revenue loss of nearly Rs 700 crore. The proposal is likely to offer incentives to allottees to register their property in time and levy a penalty on those who do not.
Source- ET Realty
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