Noida Cooperative Housing Societies Face Setback as Supreme Court Orders Individual Flat Registrations
NEW DELHI: Cooperative housing societies in Noida experienced a significant legal defeat on Wednesday when the Supreme Court directed the individual registration of flats based on prevailing circle rates. The Uttar Pradesh stamp department estimates that this judgment will impact approximately 15,000 flat owners and increase government revenue by an estimated INR 100 crore.
Impact on Flat Owners and Government Revenue
The directive was issued by a special bench comprising Justices Dalveer Bhandari and HS Bedi while dismissing appeals filed by entities like the Army Welfare Housing Organisation, which contested the Noida Authority's decision to levy stamp duty using current rates. Abha Sharma, counsel representing several flat owners, explained that this decision will impose a stamp duty liability ranging from Rs 2 lakh to Rs 3 lakh, a substantial sum considering the original construction cost of these houses back in 1992. These high registration fees are a direct consequence of the real estate boom witnessed over the past decade. To illustrate, a three-bedroom flat in Noida priced at Rs 11 lakh merely 10 years ago now commands a price of at least Rs 60 lakh.
Societies to Appeal for Review
Disturbed by the order's implications, the affected societies announced on Wednesday their intention to appeal to the court for a review of its decision. They contest the decision largely due to the implications it has for their members.