Freehold Properties In Noida Could Now Be A Reality

In a move that could help it earn significant revenue, the Noida Authority planned to convert all leasehold properties into freehold properties. Global consultant Ernst & Young was roped in by the authority to study the impact of the move, and the authority is now in process of understanding the nitty-gritty of the plan.

Call it a pre-Diwali gift, on November 1, the authority gave its in-principal approval to conversion of leasehold into freehold properties. Now the Uttar Pradesh government has to give its assent too. "The proposal was brought for discussion in the meeting and the board gave an in-principal nod for converting the landholding rights to freehold. The authority's chief executive officer and chairman, Alok Tandon, has been authorised by the board to now send the proposal to state government for its approval," a senior official was quoted as saying.

If the plan materialises, Noida residents will also have a reason to cheer. A freehold property allows owners absolute ownership, and is easy to sell and transfer. In the case of a leasehold property, the buyer’s control over the property is limited and time-bound. The authority has also proposed that it would allow residents to register their property floor-wise, something not permitted so far. A multi-story house in Noida – the city at present allows only four storeys ─ is registered as a single unit so far. This limits a property owner’s rights to transfer property to their legal heirs.

Is Noida prepared for the change yet?

If the plan to convert leasehold properties into freehold ones goes through, Noida will see a rise in its population, which is currently estimated at 16 lakh.

The authority will have to build infrastructure to support this increase, say experts. “A detailed study pertaining to the proposals should be conducted as the city needs to be ready in terms of civic infrastructure before we make the final move,” former chief architect and town planner in the Noida authority Rajpal Kaushik was quoted in a report by The Hindustan Times.

"Noida will become like Ghaziabad and Delhi. The government should not allow conversion of leasehold to freehold, and continue a ban on floor- wise registry,” President of Architects’ Association (Noida Zone) Atul Gupta was quoted as saying in the report.