Relief For Noida Home Buyers As Stamp Duty Hike Pushed by 4 Months

In what came as a relief for home buyers, the UP stamps and registration department on March 29 announced that the decision to increase stamp duty on registration of property in Noida and Greater Noida by two percentage points will be implemented after four months, if papers are cleared by April 1.

When the Uttar Pradesh Cabinet had earlier this month decided to raise stamp duty on property from five per cent to seven per cent, most stakeholders in the sector had found themselves in a tight spot. While middle-class taxpayers complained their burden would rise, developers were unhappy about the negative impact the state government's move would have on an already dry real estate market in Noida and Greater Noida.

Estimated to bring Rs 100 crore to the state exchequer, this plan has, however, kept the registry office in Noida Sector 33 abuzz with activity.

While on the one hand this led to a rush among home buyers to get their properties registered before the decision was implemented, on the other hand the UP Stamps and Registration Department staff members had to work through the entire month of March, day and night, to finish the workload. The only off day that they got was on Holi, celebrated on March 24. Compared with 70 to 100 a day earlier, the department is estimated to be registering 500 properties a day to meet the rush.

However, the March 29 announcement of an extension in implementation of the stamp duty increase has brought cheers to many. The media quoted UP Stamps and Registration Department Assistant Inspector-General S K Singh as saying the step would not only take some load off the staff members working late in the night but also help accommodate a higher number of buyers in the registry process.

When implemented, the state government's move would add at least Rs 1-2 lakh to each home buyer's expense. While the move is criticised for adding to the taxpayers' burden, it will subsequently help home buyers in many ways. Here are a few reasons:

• This move is an opportunity for home buyers to get their paperwork done at the earliest. It would prove to be a wake-up call for people who have been waiting for long to register their properties. This not only helps them have a clear property title but also helps the government maintain records.

• This is also an opportunity for the government staff – often criticised for slow movement – to clean up their image. The amount of work the registry department staff members have put in has been commendable.

• An additional earning for the government exchequer will help build better infrastructure, something cities like Noida need for meeting the rising demand of an ever-increasing population.