Noida Sector 105 Residents Face Fresh Labour Cess Notices for Older Homes

• Residents claim labour cess was already paid during the construction or lease process.
• Some notices reportedly demand additional dues with interest and penalties.
• Labour officials say property owners can file objections for verification.

Noida: Residents of Sector 105 in Noida have raised concerns over labour cess notices being issued for houses constructed several years ago. According to residents, some property owners have received demands running into lakhs of rupees despite claiming that the applicable cess had already been paid earlier.

The issue has emerged over properties that were constructed around seven to 10 years ago. Residents allege that the latest demands were issued without fresh physical inspections of the properties. They are particularly concerned about notices carrying provisions for monthly interest and penalties, which they say could substantially increase the amount payable.

The Sector 105 Residents Welfare Association (RWA) has approached the Noida district administration over the matter. RWA representatives have claimed that a significant number of residents, including senior citizens and people living outside the city or abroad, are finding it difficult to respond to the notices and visit government offices for clarification.

Labour cess is collected on eligible construction work under the Building and Other Construction Workers’ Welfare Cess Act, 1996. The levy is generally calculated at up to 1% of the construction cost and is intended to fund welfare measures for construction workers, including healthcare, pensions, accident assistance and educational support.

Residents of Sector 105, however, have questioned the basis on which some of the recent demands were calculated. They allege that properties that had already undergone the relevant payment process are now being assessed again using updated construction valuations.

Vipin Kumar Jain, the owner of a property in the sector, said he purchased his house in September 2022 but recently received a notice concerning labour cess allegedly outstanding for the 2017-18 financial year. He said the notice was issued in the name of the previous owner and demanded Rs 94,500.

According to payment records cited by Jain, the previous owner had already deposited Rs 32,500 in June 2016 and another Rs 15,765 in April of the same year. The case has therefore raised questions among residents over whether earlier payments have been properly accounted for in the department’s records.

Several residents have also questioned the method used to determine construction costs. Sudhanshu Agnihotri said notices were being issued even in cases where residents believed the cess had already been deposited.

He also raised concerns about senior citizens having to repeatedly visit government offices to resolve such disputes. According to him, the absence of adequate lift facilities at the labour department office in Sector 3 makes these visits particularly difficult for elderly residents.

Sector 105 RWA president Deepak Sharma said residents should not face fresh demands without proper verification of construction records and previous payments. He also questioned the assessment of smaller houses, saying their actual construction costs were considerably lower than the values being used by the authorities.

The RWA has further claimed that some property valuations were determined using satellite or GIS-based information. Residents argue that such assessments may not accurately reflect the actual construction cost of individual houses.

The labour department has defended the issuance of the notices, stating that the assessments were based on information from a GIS survey conducted during 2017-18. Officials said the calculations were made using construction rates applicable under the Public Works Department (PWD).

Additional Labour Commissioner, Gautam Buddh Nagar, Rakesh Dwivedi said notices had previously been sent to residents to inform them about the issue.

He said property owners who have objections can submit a representation before the district labour commissioner. Such representations can then be examined according to the applicable rules and records.

The dispute has created uncertainty among homeowners who say they had completed the required payments years ago. Residents are seeking verification of historical payment records before any additional liability is enforced.

The RWA has also highlighted that a sizeable section of Sector 105 residents currently lives outside Noida or abroad. According to residents, this makes it difficult for property owners to personally visit offices and resolve notices, particularly when the property has remained locked for extended periods.

Residents are now seeking clarity from the authorities on how the outstanding amounts were calculated, whether earlier payments have been adjusted and why demands are being raised years after construction.

Property owners who disagree with the labour cess assessment can submit their objections and supporting payment documents to the district labour authorities. The department has indicated that such representations can be examined under the applicable rules.

For residents who have already paid labour cess, previous receipts, payment records, lease-related documents and other relevant property papers could be important for establishing the payment history. The outcome of individual representations will depend on the records available with the authorities and the documents submitted by property owners.

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