Noida: Some good news has come in for the buyers of residential flats. As per the order of the Noida Authority, the registry of flats in Noida will now be done on the basis of the apartment's carpet area. So far, the registry was being done according to the Super area (covered area). But the residents have their reservations about this new order as they think it is not going to do much good to them.
Chief Executive Officer of Noida Authority has given orders to get the registry done on the basis of carpet area following the instructions of RERA. This arrangement has been made as per the UP RERA Act 2016. In this regard, the Additional Chief Executive Officer of Noida Authority has written a letter to the District Magistrate. He has requested the DM for necessary action in relation to getting the lease deed of apartments done on the basis of carpet area in the future. However, some residents who are still waiting for their pending registry pointed out that the new order is just an eyewash and is not going to do much good for them.
Ashok Vardhan (45), a resident of Mahagun Mirabella, who is also a legal expert and real estate advisor, says, “Only those buyers will be benefited whose purchase price is lesser than the value of the carpet area of the property. Otherwise, no one will be benefited. It is looking good on the papers but it might not be that beneficial for most of people. In my opinion, all the registries are pending in Sector 79 and that work should start first. The point to note here is that you have to give your stamp duty either on circle rate or on purchase value, whichever is higher. In most cases, the purchase value is always higher than the circle rate. So if you are saying that you will give your stamp duty on the basis of carpet area rate and not on the basis of Super area, either way, your purchase value will be higher in most of the cases. We have to pay according to the purchase value only.”
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Understanding carpet area under RERA Act
The RERA Act has a provision ensuring that the home buyer pays only for the carpet area, that is the area within the wall. The term 'carpet area' has also been described under the act. From the above, it is clear that a builder cannot charge for the super built-up area. As directed by the RERA, carpet area is a term real estate developers are obliged to use when providing buyers the details about the property’s size. That area in a flat which you could cover using a carpet is the carpet area of the property. Also known as the net usable area, the carpet area is actually that space in your home that can be used for laying a carpet.
Jitendra Kumar Bhel , a resident of Mahagun Moderne, says, “We had given a registry fee to the builder around 4 years back. In our society, before you start living in the society, you have to pay for each and everything, including registry charges and all. To some owners, the builder is claiming that they have already paid stamp duty. So we don't know how we are going to be benefited or how much it is applicable in our scenario. First, the builders should start completing the incomplete projects. After that, the registry of housing flats must be done.”
Chakresh Jain, a homebuyer and a senior citizen, who has been fighting for this demand for the last six years, says, “In the official Builder Buyer Agreement (BBA) circulated by UP Government in 2018, the sale has to be made only on carpet area and not super area, saleable area or built-up area basis. So naturally, registration will also be done on a carpet area basis only not on any other area.”