The Times of India             13.02.2014

Build houses on plots or face cancellation of allotment

NOIDA: With the Noida Authority changing the building bylaws in its board meeting, landowners in the city will have to either construct on vacant plots within two years or sell them to someone else otherwise the property will be confiscated. Official sources said the move to amend the building bylaws is aimed at ridding Noida of encroached vacant plots. As per the amendment, owners will now have to build on 100% area of the allowed Floor Area Ratio (FAR) of plots instead of 50% that was allowed till now.

Officials said this rule applies only to the residential category of plots and on new as well as old allotments. "Currently, allottees are required to have minimum 50% construction of the FAR after which they are entitled to a completion certificate for the building. However, we have received frequent complaints from residents and officials that Noida has many vacant plots with minimal allowed construction lying in shambles for decades. Some of these are reportedly being misused by residents for unauthorized use. They could also be housing criminals," said Rama Raman, chairman and CEO, Noida.

Raman said that many temporary constructions do not even have a caretaker creating a huge nuisance value in neighbourhoods. "For old allottees, we will serve a notice and ask them to complete the construction. A period of one year will be granted to them and if they fail to comply by the amended bylaws, lease deed will be cancelled and plots confiscated," Raman warned. A survey of the city will be conducted to identify such plots, officials added.

Officials said that till September 2011, property owners were allowed to seek completion certificates after constructing just 25% of the permitted FAR. In the system existing till now, allottees of residential plots in Noida were penalized if they did not build within the prescribed period. They were, however, allowed to get an extension of the construction period by paying a penalty. If they failed to complete construction even after that, the allotment was cancelled.

For now, the amended bylaws will be applicable only in Noida. Greater Noida Authority (GNIDA) had in June last year mulled over a similar change in its building bylaws. GNIDA's aim was to inhabit Greater Noida city, which has been in existence since January 1991 but is still below its targeted population by almost 25%. Discouraging speculation in land was another aspect why GNIDA had considered the amendment, official had said at the time.