GNIDA Penalty Waiver for Homebuyers in Greater Noida Announced
Greater Noida: In a significant move to benefit homebuyers, the Greater Noida Industrial Development Authority (GNIDA) has announced a temporary waiver on penalties for those unable to execute the registry of their flats due to developers’ unpaid dues. The GNIDA penalty waiver for homebuyers, effective from July 22, 2024, will last for six months and is expected to benefit around 40,000 flat buyers across 60 projects.
Background and Previous Waivers
In 2018, GNIDA had also introduced a similar waiver, allowing homebuyers to register their flats without penalties. However, those whose developers had not cleared their dues were unable to complete the process. As the waiver period concluded, these buyers encountered substantial fines—Rs 50 per day for flats under 100 sqm and Rs 100 per day for larger houses. The GNIDA penalty waiver for homebuyers was intended to discourage the practice of selling unregistered flats at higher prices when the market recovered.
Recent Developments and Rehabilitation Policy
The situation began to improve when the state government introduced a rehabilitation policy for stalled projects in December last year. Builders of over 60 projects in Greater Noida opted for a zero-period waiver on interest and penalties incurred during the pandemic and paid 25% of their recalculated dues in advance. This allowed buyers to register their flats again, but many were deterred by penalties ranging from Rs 2 lakh to Rs 2.5 lakh since 2018.
Homebuyers’ Advocacy and GNIDA’s Decision
Earlier this year, an association of homebuyers urged GNIDA to waive these penalties. The GNIDA penalty waiver for homebuyers was discussed in the Authority’s board meeting on June 15, resulting in a six-month waiver. Abhishek Kumar, president of the Noida Extension Flat Owners’ Welfare Association (NEFOWA), criticized the penalties as “unreasonable,” noting that buyers had already paid stamp duty when investing in their flats. He emphasized that the buyers were not at fault for the developers’ failure to clear dues.
Builders’ Support and Future Implications
Builders have also supported the GNIDA penalty waiver for homebuyers. Nikhil Hawelia, managing director of Hawelia Group, described the waiver as a significant relief for homebuyers whose developers have opted for the government’s rehabilitation package. However, he noted that buyers in projects where developers had cleared their dues independently should also be eligible for this relief.This temporary waiver is expected to alleviate the financial burden on homebuyers and facilitate the completion of flat registries, ensuring that buyers can finally secure legal ownership of their properties without incurring additional costs.
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