The Greater Noida Industrial Development Authority (GNIDA) has announced a six-month penalty waiver for around 40,000 homebuyers unable to register their flats due to developers' unpaid dues. Effective from July 22, this relief applies across 60 projects, allowing buyers to complete registrations without fines. Historically, GNIDA's penalties could reach INR 50-100 daily, creating financial strain. This initiative, influenced by homebuyers' associations, aims to rectify issues from unregistered flats and stalled projects. It is part of broader efforts to support homebuyers and stabilise the real estate market in Greater Noida.
The Greater Noida Industrial Development Authority (GNIDA) has announced a temporary waiver of penalties for homebuyers who have not been able to register their flats. This decision comes after many developers failed to clear their dues even after receiving part-occupancy certificates. Homebuyers will now have six months from July 22 to complete the registration process without facing fines. This initiative is expected to assist around 40,000 buyers across 60 different projects.
In the past, similar waivers were implemented. In 2018, GNIDA allowed buyers to register their flats without penalties. However, many homebuyers faced challenges when their developers did not settle their debts with the Authority. As a result, those buyers were subjected to fines that could reach INR 50 per day for smaller flats and INR 100 per day for larger ones. These penalties created significant financial strain on buyers who were already facing difficulties due to the developers' inaction.
The current waiver aims to address the ongoing issues in the housing sector, particularly the practice of selling unregistered flats. GNIDA officials noted that some buyers had been selling their properties at inflated prices without registering them. This situation arose because these buyers did not intend to reside in the flats and saw an opportunity to profit when the market improved. In December of last year, the state government introduced a rehabilitation policy for stalled projects, which provided some relief to builders and buyers alike. Many builders opted for a zero-period waiver on interest and penalties incurred during the pandemic, allowing buyers to register their flats again.
The decision to waive penalties was influenced by a request from a homebuyers' association earlier this year. During a board meeting on June 15, GNIDA officials discussed the concerns raised by buyers, leading to the current six-month waiver. Abhishek Kumar, president of the Noida Extension Flat Owners' Welfare Association (NEFOWA), emphasised that the penalties were unreasonable, especially since buyers had already paid stamp duty when purchasing their flats. He argued that it was unfair to penalise buyers for issues that were the responsibility of developers.
Homebuyers have expressed their relief over the waiver, highlighting that the penalties added an unnecessary financial burden during an already challenging time. Many pointed out that such penalties do not exist in the neighbouring Noida region, which raised questions about the fairness of the GNIDA's policies. Builders have also voiced their support for the waiver, with Nikhil Hawelia, managing director of Hawelia Group, stating that it provides significant relief for buyers whose developers participated in the government's rehabilitation package. He also noted that buyers from projects where developers had settled their dues should be eligible for similar relief.
As the housing market continues to recover, this waiver could encourage more buyers to complete their registrations and secure their properties legally. The GNIDA's decision reflects a growing recognition of the need to support homebuyers and address the challenges posed by stalled projects and unresponsive developers. This move not only aids buyers but also helps to stabilise the real estate market in Greater Noida.
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