Noida, (21/12/2018): The Noida Authority said that they will seek legal opinion before it decides on the issue of “agreement to lease”.

On Wednesday, DM, BN Singh, directed the homebuyers to opt for “agreement of lease” document with 5% stamp duty.
“We are taking legal opinion on the matter and will proceed according to the advice as per laid down rules,” said Santosh Kumar OSD, Noida Authority.

According to the agreement to lease, homebuyers in Noida, Greater Noida and Yamuna Expressway areas, who got possession of their flats without a completion certificate, will have to pay 5% stamp duty to the government (the district administration).

This agreement will give the buyers legal ownership of their flats but not the right to sell them, until the developer gets a completion certificate from the respective authorities – Noida Authority, GNIDA and YEIDA.

While the step directed by the DM seems to be an exercise to meet revenue targets of Rs 2,532 crore. Noida authority said that it will lead to confusion and chaos.

A Noida authority official said, “though it will benefit both, the homebuyers and the builder, in the long run, there will be complications as the builder will not complete the project or seek completion certificate and get away in the process.”

Rajesh Kumar, sub registrar Noida stamp and registry department said, “we will do the registry process as per the directive of the district magistrate though right now there is no such document received by us. People need time to process the documents and make necessary arrangements."