Bank loans, easy registration lured buyers to unauthorized flats in Greater Noida

With easy loans offered by financiers and flat registration executed by the stamp and registration department, unsuspecting buyers were enticed to buy a flat in thousands of ready-to-move-in flats in and around Shahberi village.

Shiv Kumar Trivedi, 24, an agency operations manager in Noida, moved into his fourth-floor apartment with three other family members in Qasim Villa only after executing registration at the stamp and registration office.

“After getting a home loan and running the record, Shiv thought the deal was legal. He was happy because he had bought a house,” said Narendra Trivedi, Shiv Kumar’s uncle.

Home buyers, who have invested in flats in many buildings in Shahberi, rallied to hear that the two residential buildings, one complete and the other under construction, collapsed.

GIC Housing Finance, India Infoline Housing Finance Limited (IIFL) and many other non-bank finance companies provided loans to homebuyers, who purchased flats in the residential buildings that were built without getting approval from the Greater Noida authority.

Buyers are puzzled about how their home loan application was approved if the buildings were built without the proper approvals.

“We had no doubts about the legality of the flat after we got the mortgage loan approved quickly as the financiers exercise due diligence to look after their interests,” said Sandesh Kumar, whose family bought a flat in the unauthorized building. that collapsed

A housing project becomes legitimate if the builder has purchased the land for housing purposes from the Greater Noida authority and various building statutes are followed.

Mahendra Chaudhary, a social activist from Shahberi, said that a BHK apartment is usually sold here for $14-17 lakh while a flat of 2-BHK is readily available for $20-23 lakhs.

“The brokers take advantage of the situation and organize loans for home buyers. Following a court case in 2011, the area was left without notice and the acquired land was returned to the farmers. Later, the developers chipped in and bought land for the construction of multi-story buildings,” he said.

Homebuyers felt that the financing agencies should have exercised due diligence in clearing the project for home loans.

Vijay Shrivastava, a bank manager in Gautam Budh Nagar, said: “All banks, private or government, or even financial agencies, follow a set procedure before sanctioning a home loan. The legal team examines the land title, approved map, and certificate of occupancy issued by the local authority, such as the Greater Noida Authority. If any approval is missing, the mortgage loan cannot be approved. I do not know how these buyers obtained a mortgage loan for this building, which was not even sanctioned by the local authority”.

The Gautam Budh Nagar seal and registration department said that they run a property registration without going into legality.

“We do not have the power to investigate and verify the legality of a particular property, be it a flat or a plot. We register a property if they are paying the corresponding seal and have two witnesses. Buyers should exercise due diligence before making an investment or running registration,” said GP Singh, Deputy Inspector General, Department of Stamps and Registration at Gautam Budh Nagar.


    Vinod Rajput writes about the environment, infrastructure, real estate and government policies in Noida and Greater Noida. He has reported on the environment and infrastructure in Delhi, Gurgaon and Panchkula in the past.
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