Many homebuyers in Noida and Ghaziabad are unknowingly walking into legal and financial troubles by purchasing flats that are not registered. Builders in Uttar Pradesh have been handing over possession of flats without completing the mandatory registration process. This issue is now under investigation by the state government.
What Happens Without Registration?
When a builder hands over a flat without registering it, the buyer faces numerous issues. Registration gives you full ownership rights. Without it, builders retain control over key aspects of the property, including maintenance and utility charges.
Builders often exploit this by:
- Charging higher maintenance fees: Builders continue managing maintenance services, which are more expensive compared to charges levied by Resident Welfare Associations (RWA) or Apartment Owners Associations (AOA) post-registration.
- Overcharging for electricity: Builders purchase electricity at government rates but sell it at inflated rates to residents. Registration would transfer control of these services to the owner, preventing such exploitation.
Government Cracks Down on Violations
According to the Uttar Pradesh Apartment Act and the Stamp Act 1899, it is the builder’s responsibility to complete the registration process. However, by skipping it, builders avoid paying stamp duty, leading to revenue losses for the government.
In Ghaziabad alone, an estimated 600 flats have been handed over without registration, causing a loss of approximately ₹12,000 crore in stamp duty revenue. The Housing and Urban Planning Department has instructed the Ghaziabad Development Authority to investigate and take action.
This issue isn’t new. Back in 2018, FIRs were filed against three builders for delivering flats without registration despite receiving full payments.
What You Should Do Before Buying a Flat
To avoid falling into these traps, buyers should:
- Demand registration upfront: Never accept possession of a flat without a registered sale deed.
- Check the documents: Ensure that the builder has provided the Occupation Certificate (OC), Completion Certificate (CC), and proof of registration.
- Consult experts: Get legal advice to ensure all compliance is met before making payments.
Why Registration Matters
Registration ensures you have complete legal ownership of the property. It also transfers responsibilities like maintenance and utilities to RWAs or AOAs, saving you money in the long run. A registered flat also protects you from future disputes or legal complications with the builder.
Be cautious and informed while making your property purchase in Noida, Ghaziabad, or other cities in Uttar Pradesh.
