The Noida administration revealed its draft proposal to sharply increase circle rates.
NOIDA: Realtors' association Credai has appealed to chief minister Akhilesh Yadav to stop the proposed increase of Noida's circle rates while homebuyers will hit the streets in protest against being forced to cough up more for already delayed flats.
A day after the Noida administration revealed its draft proposal to sharply increase circle rates - which decides stamp duty on a flat's registry - there was widespread unhappiness about the decision. Credai, which sent a memorandum to the CM, said market conditions called for a decrease in circle rates, citing the example of Haryana, which recently slashed circle rates by 15% in Gurgaon to lift the real estate market out of a prolonged slump.
Suresh Garg, secretary of Credai (western UP), said, "The proposal to increase circle rates in Noida will affect the already sluggish market in a big way. Plus, the government has already decided to implement the 2% increase in stamp duty (from 5-7%). Increasing circle rates up will lead to a huge burden on new and potential buyers.
Circle rates are already high in Noida, in many cases higher than the market rate. It's a reduction of rates that is in order"
Homebuyers' groups, already disgruntled with delayed possessions and other issues like steep maintenance charges, were furious.
"Why should buyers suffer because of delays by builders? We are going to demand that our registrations be done at the same rate applicable when we bought our houses. The buyers should not suffer because the builder has failed on its commitment," said Shweta Bharti, general secretary, Noida Extension Flat Owners' Welfare Association.