It seems Noida has another protest on its hands.
The Uttar Pradesh Stamps and Registration Department recently proposed a hike in flat-registration charges from the current 5% to 7% to bring the Noida rate on a par with the rest of the state. This has left home owners flustered.
The Association of NCR Home Buyers (ANHB) has termed the hike unjustified as it will cause undue financial strain on buyers. It has communicated its objection to Noida Authority and the District Magistrate of Noida. It is also planning a protest against it.
“Service tax and VAT have already increased the cost of flats in Noida," said N Sareen, ANHB founder. "In such a scenario, if stamp duty is also increased, it will be an additional burden to thousands of people who have booked flats.”
Besides these costs, home buyers also have to pay cost-escalation charges to realtors in case the possession of flats is delayed.
“Possession of flats is almost always delayed in Noida. I was supposed to get possession of my 3 BHK flat in Sector 107 ten months back. I still do not have the keys," Sareen said.
"In cases of delay, builders collect 10 per cent of the cost per flat as escalation charges," said Kapil Tyagi, President of Home Buyers' Group of Amrapali Heartbeat City. "A hiked stamp duty will be nothing short of devastating for home buyers.”