Noida builders seek exemption from royalty fee on soil excavation

Builders in Noida have sought exemption from paying royalty on soil excavation that they carry out at their construction sites, citing a Supreme Court judgement which allowed the waiver for real estate companies.

The Promoters and Builders Association of Pune had filed a case in the apex court against a Bombay High Court order which said that real estate players should pay royalty on the soil excavated. The Supreme Court overturned the High Court verdict.

Based on this judgement, real estate firms who are part of CREDAI Western Uttar Pradesh met the Noida district magistrate NP Singh recently and requested that they be exempted from the fee if they use the soil excavated from within the project.

"Most projects require the soil that is dug out. We have requested the DM for exemption from paying royalty in such cases," Manoj Gaur, managing director of Gaursons India. The royalty can be levied in cases where the project does not require the mud dug out within itself, he added.

Builders also said that they should not be made to pay stamp duty on the interest component of the annual installments of the land that they purchase. Right now, builders pay stamp duty on the entire installment amount which includes the interest component.

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