Explained: Why 8,000 flat registrations are stuck in NCR's Greater Noida

These projects, under the jurisdiction of the Uttar Pradesh State Industrial Development Authority (UPSIDA), are facing delays in property registrations due to a combination of factors

Over 8,000 homebuyers across nine housing projects in Greater Noida (West) are unable to register their flats due to:

 

• Developers’ unpaid dues of over Rs 400 crore to the state authority.
• Legal disputes over construction permissions.
• Confusion around Floor Area Ratio (FAR) permissions between developers and the government.

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What is FAR and why is it important?

• FAR (Floor Area Ratio) determines how much construction can happen on a piece of land.
• In 2007–2011, UPSIDA (Uttar Pradesh State Industrial Development Authority) allotted land with FAR 2.75.
• In 2013, this was revised to 3.5—allowing developers to build more.
• Developers revised their building plans based on the new FAR.
• However, later UPSIDA officials disputed the increase, causing confusion and delays in issuing completion certificates—which are mandatory for flat registrations.
• Update: In 2024, UPSIDA’s board finally ratified FAR 3.5, ending the long-standing dispute.

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Background in detail:

Between 2007 and 2011, the Uttar Pradesh State Industrial Development Authority (UPSIDA) allotted land parcels for various housing projects in Greater Noida. At that time, the permissible Floor Area Ratio (FAR)—which determines the maximum buildable area on a plot—was set at 2.75.

 

In 2013, the Greater Noida Authority revised the FAR to 3.5, allowing developers to construct larger structures. Developers of the previously allotted projects modified their building plans to align with the new FAR and submitted them for approval. These revised plans were approved between 2013 and 2014.

 

The Dispute: FAR Contention and its impact

Despite the initial approvals, subsequent UPSIDA officials contested the applicability of the increased FAR to these projects, insisting that the original FAR of 2.75 should remain in effect. This disagreement led to a stalemate, preventing the issuance of completion certificates—a prerequisite for property registration.

 

Resolution: Ratification of increased FAR

The impasse was resolved only recently when the UPSIDA board officially ratified the 3.5 FAR, aligning with the Greater Noida Authority's 2013 revision. This decision paved the way for progress in the affected projects, reported the Times of India.

 

For instance, as per the TOI report, on April 27, the registration process commenced for 550 flats at Migsun Green Mansion in Zeta 1, marking the first such development under UPSIDA to do so. Similarly, E Homes began registrations after the developer, Designarch Infrastructure, partially cleared outstanding service charges.

 

 Ongoing Challenges: Dues and Documentation

Despite the resolution of the FAR issue, many projects continue to face hurdles due to:

 

Outstanding dues: Developers owe significant amounts to UPSIDA, hindering the issuance of completion certificates.

Incomplete documentation: Necessary submissions for obtaining completion certificates are pending.

For example, Shivalik Homes, developed by Cosmos Infraestate Pvt Ltd, has completed construction of 420 units but awaits a completion certificate due to unpaid lease rent and interest amounting to Rs 94 lakh, reported TOI. Similarly, La Galaxia has two incomplete towers, and despite 118 families moving in, the developer must clear Rs 8.5 crore in dues before proceeding.

 

Which projects are affected?

Here’s a status breakdown of major affected projects: 

Migsun Green Mansion (Zeta 1): Registrations began on April 27 after the FAR ratification.

 

E Homes: Registrations commenced after the developer, Designarch Infrastructure, partially cleared outstanding service charges.

 

Shivalik Homes: Construction of 420 units is complete, but the developer, Cosmos Infraestate Pvt Ltd, has yet to clear Rs 94 lakh in lease rent and interest, delaying the completion certificate.

 

La Galaxia: Two of the seven towers are incomplete, yet 118 families have moved in. The developer has applied for a completion certificate, but pending dues and incomplete construction hinder progress.

 

Other Projects: Four projects, including those by Alpine Realtech and JVK Developers, are stalled, with JVK under the National Company Law Tribunal (NCLT). Two others face cancellation threats or legal challenges due to non-compliance and unpaid dues.

 

What has the government Done?  In December 2023, the Uttar Pradesh government approved a policy to address stalled legacy housing projects. Under this scheme, developers could avail waivers on penal interest for the period between April 2020 and March 2023 and were required to pay 25% of the land cost dues within 60 days to initiate the registration process. However, few developers have utilized this scheme, prompting authorities to consider canceling allotments and attaching properties to recover dues .

 

How Are homebuyers affected?

• Buyers paid for their flats but can’t get legal ownership documents.
• Flats can’t be sold, mortgaged, or inherited.
• Many are already living in the units without formal registry, exposing them to legal and financial risks.

 

 What happens next?

• Some developers are now moving ahead with partial payments and registration.
• Others may face project cancellation, legal action, or NCLT proceedings.
• Homebuyers are urging faster coordination between authorities and builders to resolve the deadlock.

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