The Noida Authority has taken a decisive step to address a long-standing real estate headache for thousands of flat owners. On Saturday, its board approved the formation of an eight-member committee specifically tasked with untangling the complex issues surrounding the non-registration of tripartite sub-lease deeds in cooperative group housing projects.
What is the Core Problem?
The issue stems from flats built on group housing plots that were originally allotted to residential cooperative societies. As per norms, after construction and payment of dues, tripartite sub-lease deeds should be executed between the Noida Authority, the cooperative society, and the individual flat allottee. However, in numerous cases, this critical legal step was never completed.
Officials explained that a significant number of flats were sold by the original allottees to subsequent buyers. While the cooperative societies updated their internal records and issued No-Objection Certificates (NOCs), the formal sub-lease deeds were not registered with the authority. In many instances, properties changed hands multiple times through General Power of Attorney (GPA) or Special Power of Attorney (SPA) transactions, leaving current occupants without a legally registered lease.
The Committee's Mandate and Composition
The newly formed panel is chaired by the Additional Chief Executive Officer (Group Housing) of the Noida Authority. Its primary mandate is to examine all complications arising from this lapse and submit concrete recommendations for a resolution. Crucially, the committee must ensure that the financial interests of the Noida Authority are protected in the process.
The committee includes key officials who can address the multi-faceted nature of the problem:
- Chief Legal Advisor
- Financial Controller
- Officer on Special Duty (Group Housing)
- Assistant Inspector General (Stamp), Gautam Budh Nagar
- General Manager (Planning)
- General Manager (Civil)
- Manager or Assistant General Manager (Group Housing)
This diverse composition underscores the legal, financial, and administrative dimensions of the crisis.
Impetus and Implications
The matter gained urgent attention after the Air Force Naval Housing Board highlighted the scale of the problem. In a letter dated December 10, 2024, it submitted a list of 729 such flats in Sectors 21 and 25 where original allottees sold units without executing the necessary deeds. The Board requested that sub-lease deeds be allowed directly in favour of current occupants upon payment of prescribed charges.
This situation has led to dual losses: financial losses for the Noida Authority and revenue losses for the state exchequer due to unpaid stamp duty. The authority currently permits the execution of sub-lease deeds only in favour of the original allottee, subject to delay charges, which does not solve the problem for subsequent buyers.
The committee's work is expected to pave the way for a uniform policy to regularize sub-lease registrations across Noida, bringing relief to countless homeowners stuck in legal limbo and streamlining property ownership records in the city.
