Homebuyers up in arms as registration charges hiked by 2%

The UP Stamps and Registration Department’s announcement imposing a 2-per cent hike in registration charges from April 1 may lead to fresh round of protests in Noida and Greater Noida, with homebuyers terming it ‘unjustified’. 

They said the move will cause financial strain on over 6 lakh buyers, who have already incurred losses due to a series of litigation, farmer issues and irregularities on builders’ part. 

The homebuyers, who mainly belong to middle-class families, are not ready to face any additional 

financial burden, especially when the possession of flats is close. They have decided to stage protests, demanding the withdrawal of hike in registration charges. 

The hike in charges will affect over 6 lakh buyers in Noida and Greater Noida as the possession of flats is scheduled before the year-end or by mid-2017. Flat buyers’ associations in Noida and Greater Noida have strongly opposed the move, demanding the authorities concerned not to build additional pressure on them. The bodies have already communicated their objection to the Noida and the Greater Noida authorities and Guatam Buddh Nagar District Magistrate. 

They have also threatened to stage a protest against the move. “We have conveyed our dissatisfaction over the development. If the authorities fail to address the issue, we will stage protests and approach top authorities. We have been discussing the issue with the flat buyers so that we can chalk out our plan of action,” said Annu Khan, an office-bearer of a Greater Noida (west) flat buyers’ association.

He said service tax and VAT have already increased the cost of flats in Noida and Greater Noida. In such a scenario, if stamp duty is also hiked, it will be cause an additional burden on thousands of buyers. 

Besides hiked registration charges, homebuyers will have to pay escalated charges to realtors, if the possession of flats is delayed. “In most cases, the possession is delayed in Noida. I was supposed to get the possession of my 3-BHK flat in Sector 107 10 months back. But I still have not been handed over the keys of my house. The hiked stamp duty is causing harassment,” said Indrish Gupta, office-bearer of another flat buyers’ association.

Last week, the department had said it would hike registration charges from the existing 5 per cent to 7 per cent to bring the rate in Noida and Greater Noida at a par with the rest of the state.