In cities like Noida, buyers usually get leasehold properties and not freehold ones. In such a situation, it is important to understand whether the lease amount has to be paid annually or at one time, and can the authority increase the amount after allotment?
How many years is the lease for?
Most leases are for 90 or 99 years. after this period Property The government has to return it unless you convert it into freehold by paying fees. If the lease is based on a lump sum premium and does not stipulate payment of annual rent, the government authority cannot arbitrarily impose new charges at a later date, unless there is an express provision in the lease deed or a fresh agreement between the parties.
What do experts say?
According to Sudhanshu Mishra of Square Yards, if the lease has been fixed at a lump sum premium and the annual rent is not mentioned in it, then the government cannot itself add the annual rent later. The court has also given such decision many times. Harsh Parikh of Khaitan & Company says that it is not necessary to pay rent every year for the lease to be valid. The initial one-time payment also makes the lease valid. Lease has also been defined in the same way in the Transfer of Property Act. That is, the right to use the property is given for a fixed period, payment can be made in one go or from time to time.
What are the rules in Noida?
In Noida and Greater Noida, land is usually available on lease for 90 years. There are two options in this. Annual Rent or One-time Lease Rent (OTLR) If you have paid OTLR in lump sum, you generally do not have to pay any further rent.
Can Noida Authority increase the charges later?
It completely depends on the lease deed that is signed. If it is written in the conditions that the fare can increase, then the authority can increase it. But if such a right is not given in the lease deed, or a lump sum amount has been paid, then imposing new charges without consent is not considered right.
Rajasthan case
There was a case in Rajasthan, where the government brought a new lease deed three years after allotting a 99-year lease and started demanding lease rent of 5% of the market value every year from the plot holders. The court declared this wrong and ruled in favor of the buyers.
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