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Stuck registries of flats in Noida may inflate EMI for homebuyers, Real Estate News, Realty Beat

Stuck registries of flats in Noida may inflate EMI for homebuyers, Real Estate News, ET RealEstate
NOIDA: As if delayed housing projects weren’t enough, buyers in the city have a new problem. With registries of thousands of flats stuck, buyers who took home loans have started receiving notices from banks — both state-run and private ones — demanding a 2% additional interest over the designated rates.

The bank notices have cited delay in registry of flats as the reason. They have referred to certain conditions mentioned in the sanction letter that was signed between the buyer and the bank during the disbursement of home loans.

Under these terms and conditions, a flat buyer needs to submit papers related to the execution of sale deeds within 60 days of being offered the possession letter by the developer.

If the document is not submitted, the buyer will have to pay an additional 2% interest per annum over and above the prevailing rates. As the bank will command a penal interest and compound the balance amount on a monthly basis, non-payment of such charges could affect the credit score of the buyer in the future.

Buyers of flats in the sectors earmarked for developing Sports City are the ones hit the hardest. Many buyers handed the fresh notices have approached the lead bank manager of the district and sought his intervention.

Among them is Narendra Kumar, a central government official who bought a 3BHK flat in Civitech Stadia in Sector 79 in March 2017. Kumar paid Rs 68 lakh for his flat, for which he had taken a loan of Rs 58 lakh.

Kumar’s monthly EMI of Rs 56,500 could go up by at least Rs 5,000 if the 2% additional interest was levied. “A couple of months ago, I received a notice from my bank, which said I’ll need to pay an additional interest as I had not submitted the sale deeds after receiving possession of my flat. They cited a section from the agreement letter,” he said.

Kumar, who took the loan five years ago, said he had responded to the notice and was expecting a solution soon. Buyers of the Sports City project have been offered possession of their flats and are staying there for the past three years with their families. However, a logjam between the Noida Authority and the private developers who built the apartment complexes in sectors 78, 79, 101, 150 and 152 has been delaying the execution of sale deeds or registries.

Even after paying the land premium, builders of the Sports City project are not being allowed to execute the tripartite agreement with the Authority and the buyer as no sports infrastructure or facility has been developed by them in keeping with the norms.

Subodh Goel, the managing director of Civitech Developers and general secretary of CREDAI in western UP, said, “I have not been informed about the matter. But I will take it up with the banks that have issued notices and explain to them the situation.”

Lead bank manager Ved Ratna said a meeting would be held soon. “Since the matter concerns multiple banks and financial institutions, we will take up the representations of the affected buyers in a meeting with the district magistrate. We might have to approach the Reserve Bank of India for further directions,” Ratna added.


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