In a significant move to address long-standing property disputes, the Noida Authority is drafting a policy to allow the registry of residential plots and flats transferred through multiple general powers of attorney (GPAs), as published by The Economic Times.
This initiative aims to formalize ownership, reduce legal ambiguities, and recover substantial revenue lost over the years by the Authority and the Uttar Pradesh government.
The scale of the problem is substantial, with a recent report by the Air Force Naval Housing Board revealing that sectors 21 and 25 of Jalvayu Vihar have 730 GPA-based properties, of which 200 involve multiple GPAs.
Officials estimate thousands of similar cases exist across Noida. The absence of regulations for subsequent GPA transfers has left numerous properties in legal limbo, depriving many families of legal ownership rights.
Currently, existing rules recognize only first GPA holders, with transfer fees ranging from 2.5% to 5%, depending on the type of transfer. Direct transfers by original allottees incur a fee of 2.5% of the prevailing rate, while transfers to blood relatives by GPA holders attract a 3.75% fee.
Transfers to third parties by GPA holders require a 5% fee. However, the proposed policy introduces a higher fee structure for subsequent GPA holders. Transfers by second GPA holders would incur a 10% fee, while third GPA holders would pay 15%. Transfers beyond the third would see incremental fees of 5% per transfer.
The proposed policy draws inspiration from a 2003 government order, which allowed multiple GPA transfers under a progressive fee structure. First attorneys paid 30% of the property price, second attorneys paid 60%, and third attorneys paid 90%, excluding transfer fees and stamp duties. While this policy enabled the transfer of around 600 properties, it was only valid until March 31, 2003.
Due to public demand, the policy received multiple extensions but failed to develop into a comprehensive, long-term solution. Meetings in 2008, 2014, and 2017 did not yield concrete results, leaving many unresolved cases.
Officials view the new policy as a much-needed resolution to the legal uncertainties surrounding GPA transfers. Noida Authority CEO Lokesh M highlighted the urgency of addressing this issue and stated that the policy proposal would soon be submitted for government consideration.
The policy is also expected to generate substantial revenue through transfer fees and increased stamp duty collections, which could bolster the Authority’s finances and those of the state government.
On December 30, 2022, Chief Secretary Manoj Kumar Singh directed the Authority to prepare a report on revised transfer rates, emphasizing the need for an updated system to recover lost revenue. Officials believe the proposed policy could mark a turning point in Noida’s property administration, providing security to families, legal clarity for property holders, and a transparent mechanism for resolving ownership disputes.
The Noida Authority is finalizing the draft and plans to submit it for government approval in the coming weeks. If implemented, the policy could resolve decades-old disputes and significantly improve property management and administration in the region.