Homebuyers to move high court against sub-lease rule

NOIDA: Homebuyers of Noida, under the umbrella body of Noida Extension Flat Owners Welfare Association (Nefowa), are all set to contest a proposal by the district administration to convert homeowners to sub-lessees of their own property. The buyers said they would present a memorandum of protest to the district magistrate this week and follow it up with a writ petition at the Allahabad high court.
The administration had on January 2 issued a guideline, under which about 50,000 homeowners in Noida and Greater Noida were asked to sign an agreement of lease with the builder and get it registered with full stamp duty. The administration has tentatively identified 30 builders who may have allowed residents to live in their flats even when the building has not been awarded completion certificates.

The agreement format demands that builder declares the buyer as a sub-lessee of the property, the builder himself being the lessee of the land himself. The sub-lessee or the buyer following the agreement would have to take full responsibility of the maintenance and safety, leaving no responsibility on the builder.

“We find the agreement one-sided. As if the onus has been transferred on to the buyer. The buyers should not have been allowed to live in their flats which have not been granted completion certificated as that is a violation of the UP Apartment Act (Section 13). But if they have been allowed to live for the past two or three years, what is the point of this agreement now which transfers all safety and maintenance burden on the buyer?” asked Kumar Mihir, an advocate representing the buyers.

Credai, president Prashant Tiwari said: “Very few builders may have given out flats without completion certificates. Builders who are facing legal issues are among those who have given out flats like this.”