POLICIES AND

PROCEDURE
FOR COMMERCIAL PROPERTY MANAGEMENT

Land And Regulatory Framework for Built Environment Real 674

NOIDA GUIDE- DR. REEMA BALI

PREPARED BY
JOLI NAG -A13558922021
ANKIT SARKAR -A13558922032
RUPESH MISHRA -A13558922010
  INTRODUCTION
 TENDER SUBMISSION
 ALLOTMENT STEPS
 APPLICABLE MODE OF PAYMENT
 LEASE DEED
 TIMELINE OF PROJECT CONSTRUCTION
 TRANSFER OF COMMERCIAL PROPERTIES
TABLE OF CONTENT  CONSTITUTIONAL CHANGE
 MORTGAGE
 SURRENDERING/ CANCELLATION/
RELOCATION/ AMALGAMATION OF
COMMERCIAL PROPERTIES
 SCENARIO OF COMMERCIAL PROPERTIES IN
NOIDA
 INTRODUCTION
The allotment of the commercial properties and the management of
the same is governed by the
‘Policies and Procedures for Commercial Property
Management’, 2004 of NOIDA.

The Commercial department of NOIDA oversees the commercial

plots allocation and the subsequent compliances meanwhile the
Planning department of NOIDA monitors the completion of buildings

The types of commercial properties available in NOIDA namely are

• Built up shops.
• Actual user plots.
• Builder plots.

The commercial properties are allotted on an Auction, Sealed

Tender Basis or Two-Bid System.
3
TENDER SUBMISSION & ALLOTMENT
Tenders along with the required documents can be submitted by :
a) Any Individual
b) A Public or Private Limited Company
One can submit a tender for one or more than one plots.
c) Registered Partnership firm For each built-up shop, a new application is required to be submitted

The Constituted Committee (in the presence of tenderers) opens the sealed tenders on the decided date and time.

.
The Chief Executive Officer/Authorised Officer reserves the right to reject any/highest tender without stating any reason.
ALLOTMENT STEPS

The Chief Executive Officer/Authorised Officer reserves the right to make any addition/alteration to the terms and
conditions at any given point of time.

If any clarification is given regarding the terms and conditions of the tender, the decision of Chief Executive Officer is
considered to be final/binding on the allottee/applicant.

In case of ‘force majeure’, if the authority is unable to deliver the possession of the plot, the Earnest Money is refunded
without Interest.

The allotment is done on “As Is Where Is Basis”, In cases of any variations in dimensions in the brochure and on the site,
the allottee must accept the variation and the increased or decreased payment is adjusted or demanded in proportion to
the applicable tender rate.
APPLICABLE MODE OF PAYMENTS
For Built-up Shops
-20% of the Premium within 30 days (BD)
-80% of the Premium- Deposited in 16 equal half-
yearly instalments @ 12% interest P.A

For actual User Plots

-25% of the Premium (with same procedure as for Built-
up Shops).
-75% of the Premium (with same procedure as for Built-up
Shops).

For Builder Plots

The payment made by the allottee includes the
adjustment towards the Interest first and the balance
therefore is adjusted towards the Instalment due.
 LEASE DEED
Execution Ground
After completing of formalities, the Actual User Plot - the ground rent is charged
of Lease tenderer/allottee must execute the Lease Rent/
Deed. @ 2.5% p.a. of the total premium for the
Deed and take the possession of the Lease initial 10 years from the date of Lease Deed
plot/shop within 120 days from the date of Rent: execution.
allotment. In case of failure the allotment is
cancelled and deposited amount is forfeited. The
allottee
must pay Built-up Shop - the ground rent is charged @
annual 1% p.a. of the total premium for the initial 10
The execution of Lease Deed is extended Ground years.
and permitted under exceptional Rent (in
circumstances. A penalty @ 5% of total advance)
Premium is charged and is calculated on a
day-to-day basis (if an extension is granted).
Builder Plot - the ground rent is charged @
Rs.1 /sqm. /Year for initial 3 years and @
2.5% p.a. for the rest of the 7 years of the
Once the lease deed is executed, the allottee
initial 10 years.
shall take the possession of the plot within
15 days.

Lease The lease period is 90 years from the date of

Period Lease Deed.
TIMELINES FOR PROJECT CONSTRUCTION
Actual User Plot
• the Lessee must construct the building
within three years from the date of
possession.
Built-up Shop The Lessee is allowed to transfer the built-up space
• the Lessee must ‘implement’ the project after fulfilling the following conditions: -
within two years from the date of
possession. Full payment of the Premium, Interest as
well as Lease Rent (done for the entire
Builder Plot period of lease)
• the time for the construction of project varies
(as per brochure of the scheme).
Successful execution of Lease Deed.
TRANSFER OF COMMERCIAL PROPERTY(IES)
Conditions & Transfer Charges for Plot/Building
the Completion Certificate for the building
Actual User Plot has been obtained.
• No transfer charges If the built-up space is transferred
within specified time of construction.

Builder Plot The Premises is sub leased and used for

the original use only.
• No transfer charges If the built-up space is transferred
within two years from the date of completion.
TRANSFER OF COMMERCIAL PROPERTY(IES)
Transfer of If an Allottee has to rent out the Premises for the same use for which the
Property – based property was earlier allotted, no prior permissions are required to be taken.
on Power of
Attorney

Documents A Certified Copy of Registered Power of Attorney,

Required

An Affidavit on the given Performa to support the Power of Attorney as valid.

The purchaser also must submit an Indemnity Bond.

the original Allotment Letter/Possession Certificate or any other legal documents

A Certified Copy of an ‘Agreement to Sell’ duly notarised.

Transfer Charge 1st ‘Agreement to Sell’ - 1.5 times the normal Transfer Charge.
Details

Every Subsequent ‘Agreement to Sell’ - Increased @ 50% of the normal

Transfer Charge.
CONSTITUTIONAL CHANGE
From The Application for change from Proprietorship to Partnership must be submitted
Proprietorship to by the original Lessee/Allottee/Transferor. If the property is Mortgaged, the
Partnership Application should also include a NOC from the Lending Institution

The original Allottee must maintain a minimum of 25% of shareholding in the

company/firm for a minimum period of three years.

The original Allottee must maintain a minimum of 25% of shareholding in the

company/firm for a minimum period of three years.

Change in No charges are levied if the new Partner or Shareholder is within blood relations
Constitution and vice versa from the original allottee/transferee.
Charges

No CIC charges are applicable for Shareholding Transfer within blood relations,
only the processing fee of Rs.1000 is to be paid.

No CIC charges are levied in case the original shareholder(s)/partner(s) withdraws

from the company/firm.
CONSTITUTIONAL CHANGE
Change in Constitution
Proprietorship to Partnership • Certified copy of partnership deed.
Changes within Partnership
Changes within Public Ltd./
Private Ltd. Co.
Proprietorship/Partnership
to Public/Private Ltd. Co.
Documents Required
• Form B (Registration of firm) issued by the Registrar.
• Form A (name of partners) issued by the Registrar.
• A notarised affidavit, which states the relationship of the original allottee with the new partners
(For exemption from CIC charges).
• New Partnership Deed, Dissolution Deed, Retirement cum Partnership Deed.
• Form C and Revised Form A issued by the Registrar.
• A notarised affidavit, which states the relationship of the original allottee with the new partners.
• A list certified by a CA comprising the details of shareholders with shareholding details.
• A list of directors certified by a CA.
• A Resolution of board certified by the chairman of meeting/CA.
• A notarised affidavit, which states the relationship of the original allottee with the new
shareholder.
• A certified copy of Article and ‘Memorandum of Association’.
• A certified copy of ‘Certificate of Incorporation’ issued by Registrar.
• A CA certified list of shareholders with the value and the number of shares and Board of Directors
along with the addresses.
• A certified Resolution of the Board of Directors along with the Resolution in favour of the
authorized signatory.
• A notarised affidavit, which states the relationship of the original allottee with the new shareholder.
• A certified copy of ‘Commencement of Business Certificate’ issued by the Registrar of Companies
(for a Public Ltd. Co.).
 MORTGAGE
The Allottee of the Commercial Plot/Built-up Shop can only
Mortgage his/her property after completing the final
payment along with the latest Lease Rent.

.
Time taken for Communicating
It can also be kept as Collateral Security once the
Approval/Rejection – within seven days
Establishment is accepted as Functional while also fulfilling
the payment and lease rent conditions as mentioned of receiving the complete application

SURRENDERING A COMMERCIAL PROPERTY

An Allottee is allowed to Surender his Commercial Property to Noida before cancellation (See 15).

Any request for Surrendering must be submitted along with the Signatures of the Allottee/Lessee certified by a
Gazetted Officer.

In case of Public/Private Limited Co., a certified copy of Resolution of Board of Directors is also required.

Once the Surrender request is accepted, the allottee must submit a No Dues Certificate from the P.E. Jal/UPSEB
and Surrender the Lease Deed/Transfer Deed back to the Authority.
30% of the total Premium of the plot/shop is forfeited. After deduction of Lease Rent and Interest as per the terms
and conditions, the balance amount is refunded back to the Allottee
CANCELLATION/RESTORATION OF COMMERCIAL PROPERTIES

In case of cancellation, 30% of the total Premium along with the

Lease Rent and Interest is forfeited and if any balance remains, it is
refunded without any interest

Under exceptional circumstances, the commercial property can also

be restored, and the decision lies with the Chief Executive Officer and
is taken within a month of the restoration request

CLAUSE FOR AMALGAMATION

If more than one commercial property is Transferred or Allotted in one

name, the Allottee/Transferee can opt for Amalgamation, but
subdivision is not permitted.
SCENARIO OF COMMERCIAL PROPERTIES IN NOIDA
The National Real Estate Development Council (NAREDCO) in July 2021 requested
the UP Government to eradicate the Transfer Charges (see Heading 10) applicable
on commercial properties.

As per CAG approximately 79.83% commercial land was allotted to 3 major RE

Groups (WAVE, 3C, LOGIX) in between 2015-2018, Allotted land was approximately
50 lakh sq. meters.

These groups has an outstanding dues of Rupees 14,000 crores towards the NOIDA
Development Authority.

During 2010-2013 NOIDA authority failed to do adequate due diligence, and this led
to the allocation of commercial properties to the ineligible bidders. Hence resulting in
failure of timely execution.

Max Estates recently won a bid for a bankrupt Commercial project in NOIDA which
owes the Authority around 700 crores.
 THANK YOU

Presented by
Joli nag -A13558922021
Ankit sarkar -A13558922032
Rupesh Mishra -A13558922010