Noida real estate: How UP strangled its goose that laid golden eggs -Governance Now

Noida real estate: How UP strangled its goose that laid golden eggs

The real estate sector of Noida, abutting Delhi, is staring at an acute crisis thanks to the Uttar Pradesh government’s worrying decision to hike circle rate and stamp duty

Rahul Dass | July 28, 2016 | New Delhi

#circle rate #Akhilesh Yadav #home buyers #Noida real estate #Noida

Noida’s once booming real estate sector is today sailing through choppy waters, and the weather is only expected to turn rougher, with the Akhilesh Yadav government contemplating to hike the circle rate and also increase the stamp duty.

Noida and Greater Noida are governed by UP Industrial Development Act 1976 and the state government hopes to generate revenue running into crores of rupees.

But, there lies the pinch. The government is keen to mop up revenue, without having consideration for the thousands of home buyers who have not yet got their flats due to one reason or the other. The sluggish economy coupled with the Okhla Bird Sanctuary issue was touted as the prime reason by builders for the delay in handing over flats.

Even where the flats are ready, there is the problem of occupancy certificates not being issued since there are many builders who have not cleared their outstanding dues with the authorities concerned.

In most cases, the home buyers have been waiting impatiently for years together so that they can move into their flat which they have bought with their hard-earned money. However, that does not seem to be happening even as the Akhilesh Yadav government seems keen to squeeze more money out of the already empty pockets of the distraught home buyers.

The government perhaps does not realise what it means to regularly pay hefty EMIs along with the rent.

Most recently, there were reports that some groups of home buyers have deferred their protest as the government may not hike the circle rate in their areas. Apparently, only five percent of the areas will be impacted by the new circle rate.

These groups seem to be missing a crucial point. What affects five percent of the registrations today will impact the remaining 95 percent of the registrations tomorrow. It is just a matter of time that the rest of Noida and Greater Noida will have to bear the extra cost.

Ditto for the likelihood of the stamp duty being hiked from five to seven percent. The news itself prompted hundreds of home buyers to get their properties registered so that they did not have to pay more. It was fine for those who have got occupation of their flats, but what about the rest of the buyers who have still not got possession of their flats. What is their fault? Why should they suffer for the delay on the builder’s part?

The Samajwadi Party government may well be on an overdrive to earn revenue as spending is going to go up since elections are round the corner in 2017. The powers-that-be perhaps do not realise the pain and suffering of the thousands of home buyers. The common people are badly hit by this.

The Akhilesh Yadav government must not only take up the cause of the home buyers, they must also see to it that justice is not only done, but also seen to be done.

Till now, justice has eluded home buyers who have been protesting, making frantic phone calls, repeatedly visiting the building site, but all to no avail. Only a home buyer can feel the agony of seeing their flat being still under construction, year after year.

It is said that King Vikramaditya was a just ruler of the kingdom of Ujjain. He would diligently carry out his administrative duties and more importantly, he would also go in disguise to check on his citizens. Perhaps, it is time for Uttar Pradesh chief minister Akhilesh Yadav to do exactly that to know the pulse of the home buyers of Noida, otherwise it would put a massive question mark on his governance.

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