The noida authority can waive the penalty or reduce it. A max. Amount can be levied but reasons have to be stated.
Late payment to Noida authority
Background: A) A few installments towards MIG flat not paid for over ten years. b) That is around 30% of the principal amount not paid for a MIG flat in Noida for over ten years. c) The flat is sold recently and the Noida authority wants the payment to be made fully for transfer. d) The contract stipulates 18% compounded interest as a fine and penalty. Question: What is the maximum penalty that can be applied by Noida authority (is there a cap in fines and penalty just like for income tax or other government agencies).
Asked 4 years ago in Property Law
Religion: Hindu
10 Answers
Before paying penalty on remaining 30% as amount kindly check GR issued by government in that rules which says to pay fine as penalty as per officer has mentioned.
what is the maximum INTEREST penalty that NOIDA authority can levy for late payment of installments for apartment/flat? Also, can the interest psf (per sq.ft.) be higher than market value psf. Thank you.
Asked 4 years ago
Maximum penalty and interest that can be levied is as per terms of contract
SC has said
"It cannot be disputed that the rate of interest, on which agreements were entered into, has gone down by now. The present lending rate is much below and the RBI has taken several steps to revive the economy. In such a scenario, it would never be possible to make payment of interest at the rate fixed by authorities and also a penal interest to be realized by concerned authorities. The home buyers are not able to obtain fruits of the investment and are deprived of legal title of the flats,"
2) SC has capped the rate of interest at eight per cent to be charged by authorities on the outstanding dues of land against the exorbitant 15 to 23 per cent.
Since this relates to local laws it can effectively be answered by only a local lawyer.
Property in Noida is leasehold and not freehold. The Noida authority is the owner of the property and gives out property on 90 year lease. Before sale – purchase or transfer of property, the seller must obtain a transfer permission or transfer memorandum from the Noida authority. This requirement applies to all properties built on plots allotted by the Noida authority including on flats built by private developers and builders on land allotted by Noida authority. Transfer fee or TM fee, as it is called, varies based on location of the property and is charged based on the area of the property. The charges may, at times, be almost the same as the stamp duty payable on registration of the property. Note that transfer charges payable to Noida authority are in addition to the stamp duty payable on registration. Some people argue that this amounts to double taxation.
The seller needs to make an application with the Noida authority in prescribed format known as “Transfer Application Form” on stamp paper. The permission, once granted, is valid for six months. Transfer charges are payable alongwith the application. The sector wise details are needed for further clarification.
The fine amount that can be levied by the NOIDA authority would have been mentioned in their demand letter/notice itself.
If you have any doubt about it then you can refer to the law mentioned in the demand notice by which they are enabled to collect the fine amount etc.
The top court said considering the current state of real estate sector, the projects have come to a standstill and the sector needs to be given impetus mainly considering plight of home buyers.
Supreme Court on Wednesday capped the rate of interest at eight per cent to be charged by authorities on the outstanding dues of land against the exorbitant 15 to 23 per cent.
A bench of Justices Arun Mishra and U U Lalit directed the Noida and Greater Noida authorities to restructure the dues of real estate firms considering the current state of sector as out of the 114 plots given in 2005, most of the projects are incomplete.
"We direct that rate of interest on the outstanding premium and other dues to be realized in all such cases at the rate of 8 per cent per annum and let the Noida and Greater Noida Authorities do a restructuring of the repayment schedule so that amount is paid and Noida and Greater Noida Authorities are able to realize the same," the bench said.
The top court said that in case of failure to pay the outstanding amount, the concession granted shall stand withdrawn but at the same time, the Noida and Greater Noida authorities shall also ensure that not only instalments/money are deposited and all such projects are completed within the stipulated time.
There's no capping, Interest has to be paid as stipulated in the agreement, unless the charging clause for interest is unfair.
- As per law , both the parties are bond with the clauses mentioned in the authority agreement , which was signed by both the parties at the time of booking the flat.
- Since, only 30 % only remained due to pay, then you can move an application before the Noida authority to waive or reduce the penalty imposed due to delay on the sufficient grounds of delay.
- The Supreme Court capped the rate of interest at eight per cent to be charged by authorities on the outstanding dues of land against the exorbitant 15 to 23 per cent.
