Fit-out agreement was introduced tactically by a group of builders under which even incomplete flats were handed over without giving OC to flat owners.
Flat owners in Noida and Greater Noida who have shifted in their homes without having obtained occupation certificates (OC) from the concerned authorities are left with no choice but to survive with basic facilities. They are also liable of getting mandatory approvals. The flat owners have said that this situation arose due to fit-out policy under which over 50000 flat-buyers have shifted in their flats.
Pramod Kumar, a flat owner in Lotus Panache of 3C project in Noida was among those who agreed to shift to his flat under fit-out agreement with the developer. Elaborating on this fit-out agreement, Kumar asserted that it was introduced tactically by a group of builders under which even incomplete flats were handed over, without receiving OC from the authorities.
“Under fit-out scheme, an agreement would be signed between builder and flat mentioning that flat has been handed over for carrying out interior works like wooden and electricity fitting etc. But this agreement does not legally certify the ownership of the flat,” Kumar said.
Why this situation emerged?
Kumar who is a senior citizen gave two main reasons. The first reason is that the authorities (Noida and Greater Noida authorities) do not issue no-objection certificates (NOC) until their dues are not cleared by the project developer. At this stage, under the fit-out agreement, buyers would be allowed to live in their flats. “In case the authority or any other concerned authority calls it illegal, the builder can say that the flat was handed over for the fitting purpose and not for living. However, a flat-buyer will have to face the consequences after this. Flat-buyers would have to give in writing that the flat was handed over for the purpose of interior work only.”
According to Kumar, the second reason is that the flat-buyers want to shift in their flats anyhow to get relief from rent. “People like me who do not have a home would like to get the flat soon so that money which we are paying for rented flats can be saved.” Kumar asserted.
However, this fit-out scheme was termed illegal by the administration and as per the earlier reports of the district magistrate of Gautam Buddh Nagar. More than 50,000 flat-buyers in Noida and Greater Noida are living ‘illegally’ in their houses.
To sort out this issue, the district magistrate last year in December introduced a Tri-Party agreement (sublease agreement between flat owner, builder and the concerned authority) so that buyers can get their flats registered. Many had then objected to the proposal. As per the information, Noida Authority has challenged this Tri-Party agreement before Allahabad High Court, asserting that it would not grant permission for flat registration until the land dues are not cleared by builders as it would cost a huge amount.
Sources also told CitySpidey that many flat-buyers who were given possession under Tri-Party agreement have been waiting to get their flat to be registered in Greater Noida because the builders have not cleared dues of Greater Noida Authority.