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Greater Noida, No extra charges on NOC for selling flat

Rishabh Chamoli | 2022-09-11

Residents have reached out to Greater Noida Industrial Development Authority (GNIDA) against builders and AOAs for charging exorbitant amounts from flat owners who wish to sell their properties.
This amount is being charged in lieu of issuing No Objection Certificates (NOC) required for transferring the property.

The Greater Noida Industrial Development Authority (GNIDA) has issued notices to as many as 120 Apartment Owners Association (AOAs) and builders, warning them to stop charging any extra fees apart from maintenance from flat owners, who wish to sell their properties.

What is the concern of residents?
Residents have brought the issue to light that AOAs and builders are charging them hefty amounts to grant No Objection Certificates (NOC) if they wish to sell their property.
In some cases, the associations have demanded amounts as high as Rs 2 lakh for issuing NOC. GNIDA has termed this practice illegal and called it an act of corruption.

What does GNIDA say on the issue?
Surendra Singh, the CEO of GNIDA, states that as many as 120 builders and AOAs have received warning letters from the authority. Under this, any extra amount other than the maintenance fee will attract strict legal action.
Adding to it, if a builder fails to issue a NOC within 15 days from the applications date or to inform about the non issuance of the certificate, the authority will consider it as deemed approval. The owner will be allowed to transfer the property under Section 39 of the UP Apartment Act.

What is the current process of acquiring NOC?
The GNIDA allocates plots to builders to develop a project, under the group housing scheme. Once the construction is completed and work completion certificates are obtained, the builder executes a tripartite sub-lease deed amid authority, buyer and builder.
Following this, the buyer is free to sell their property in Greater Noida to a third party. However, a Transfer Memorandum (TM) is issued by GNIDA in this process.
While applying for TM, the home owners are required to submit NOC from AOAs or builders.