Greater Noida: GNIDA tells AOAs & builders to not charge owners extra for flat sale

NOIDA: Greater Noida Industrial Development Authority (GNIDA) has sent notices to at least 120 builders and apartment owners’ associations (AOAs), warning them against charging any other amount, other than maintenance fee, from flat owners who want to sell their properties.

Residents had complained to the authority that while selling flats, AOAs or builders seek lakhs of rupees before issuing a no-objection certificate to them. Officials said that it is illegal and comes in the category of corruption.

GNIDA CEO Surendra Singh 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.”

During the last public hearing, residents of a society of Greater Noida West (Noida Extension) complained to Singh that the builder had been demanding amounts of up to Rs 2 lakh in lieu of issuing NOCs to those wanting to sell their flats.

Subsequently, the authority’s builder wing got instructions to issue a warning letter to such builders and AOA representatives.

In addition, if any builder or AOA does not issue NOC within 15 days from the date of application or does not inform about its non-issuance, the authority will consider it as deemed approval and allow transfer of flat as per Section 39 of UP Apartment Act.

Under the group housing scheme, the GNIDA allocates plots to builders for developing a project. After completing construction and obtaining the work completion certificate, builders execute a tripartite sub-lease deed between the builder, buyer and the authority. After that, the owner can sell the flat to a third party. However, the GNIDA issues a transfer memorandum (TM) for this process. While applying for the TM, the AOA or the builder concerned needs to give a NOC.

Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (NEFOWA), 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.”