Gurugram caps fee for registration of flat at Rs 15,000

The department of town and country planning (DTCP), Gurugram issued a notice to private developers on Wednesday, asking them to follow its earlier direction on charging only Rs 15,000 from homebuyers as administrative fee for registration of a flat or apartment unless mentioned otherwise in the buyer agreement.

The missive came after more than 400 homebuyers of Vatika India Next posted a complaint at the CM window and also submitted it to district administration and DTCP on Wednesday, stating that they were being asked to pay 1% of the cost of the apartment as administrative fee.

The complaint was first made by the homebuyers to Allottees Grievance Redressal Forum (AGRF) on October 10 last year. In April, DTCP directed that the administrative fee be fixed at Rs 15,000 as a one-time charge.

The registration of the property at the district revenue office is needed for execution of conveyance (sale) deed between the developer (seller) and the homebuyer (purchaser).

The administrative fee is in addition to the stamp duty paid by the homebuyers as revenue fees. Homebuyers said the developers charged them anything between Rs 25 and Rs 1 lakh or more as the administrative fee.

“A notice has been issued to all the developers to charge only Rs 15,000 for registration as per the circular issued by this office. Strict action would be taken against developers if they don’t adhere to the guideline,” RS Bhath, district town planner, said, adding that several complaints have been received from buyers in this regard.

A spokesperson for Vatika India, however, said that this direction had been challenged by the developers’ body, Confederation of Real Estate Developers’ Associations of India (CREDAI)I in the court, and an appeal was also filed with the financial commissioner, Haryana .

“The matter is sub judice and next date of hearing is in the middle of August. These charges help us meet the registration and other administrative expenses,” the spokesperson said.

The buyers, however, alleged that they are being asked to pay a large amount in the name of administrative and legal charges. “The town and country planning department and district administration should ensure that the order they issued on fixing administrative charges is followed by the developer,” Lokesh Yadav, a homeowner and general secretary, residents’ welfare association (RWA), Vatika India Next, said.