No Transfer Fee on Property Inherited from Grandparents in Noida
Recently, the Noida Authority is amending its Unified Policy to abolish transfer fees for properties inherited from grandparents. This change applies not just to residential homes, but also to high-value assets like industrial, institutional, and commercial properties.
Inheriting a family legacy is a moment of pride, but in real estate terms, it often comes with a heavy financial burden in the form of paperwork and transfer charges. For years, property owners in Noida have navigated complex rules regarding who qualifies as a “blood relative” for fee exemptions.
However, in a landmark move slated for late 2025, the Noida Authority transfer fee exemption rules are getting a major upgrade that will save families lakhs of rupees.
If you are a property owner in Noida or waiting to inherit family assets, here is everything you need to know about this policy shift.
The New Amendment: What Has Changed?
Previously, the “blood relation” transfer fee waiver was largely interpreted for direct lineage (parents to children). While transfers from grandparents were possible, they often faced bureaucratic grey areas or required specific fee structures, especially for non-residential properties.
Under the upcoming amendment to the Unified Policy, the Noida Authority has explicitly stated that no transfer fees will be levied on properties transferred from:
- Paternal Grandparents (Dada-Dadi)
- Maternal Grandparents (Nana-Nani)
This implies that if a grandchild inherits a factory, a shop, or an institutional plot directly from their grandparents, they will no longer have to pay the hefty transfer charges that were previously applicable to “non-direct” or general transfers.
Scope of the Exemption: Beyond Just Housing
What makes this news particularly impactful for the business community in Noida is the type of properties covered. The report highlights that this relief is targeted at:
- Industrial Plots: Factories and manufacturing units.
- Institutional Properties: Schools, colleges, and training centers.
- Commercial Assets: Shops, showrooms, and office spaces.
In the past, transferring commercial or industrial assets—even within the family—was an expensive affair. Transfer charges for these categories are significantly higher than residential plots, often calculated as a percentage of the prevailing circle rate or current allotment rate. By removing this cost for inheritance from grandparents, the Authority is essentially easing the “Ease of Doing Business” for family-run enterprises.
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Why the Inclusion of “Nana-Nani” Matters
A crucial aspect of this notification is the explicit mention of maternal grandparents (Nana-Nani). In many property laws across India, the definition of linear descendants sometimes complicates transfers from the mother’s side of the family compared to the father’s side.
By strictly categorizing both paternal and maternal grandparents under the fee-exempt list, the Noida Authority is ensuring gender neutrality in inheritance rights. This clarity eliminates future legal disputes and empowers grandchildren to claim their maternal inheritance without financial penalties.
Understanding the “Unified Policy” Amendment
The Unified Policy is the rulebook that governs how the Noida Authority manages land lease, transfers, and mutations. Any change to this policy requires approval from the Authority’s board.
This specific amendment is designed to modernize the old rules, acknowledging that assets often skip a generation (e.g., if the parents are deceased or if the grandparents choose to bypass them). By streamlining this into the Unified Policy, the Authority is reducing the discretionary power of officials and making the process transparent (faceless).
Financial Impact: How Much Do You Save?
To understand the magnitude of this saving, consider the standard transfer fees. For commercial and industrial properties, transfer fees can range from 2.5% to 5% (or more depending on the year of allotment) of the current sector rates.
For a 200 sq. meter commercial plot in a developed sector of Noida, the transfer fee could easily run into several lakhs or even crores. With the Noida Authority transfer fee exemption, this cost becomes zero. The beneficiary only needs to pay the standard processing fees and stamp duty for the mutation (name change) in government records, which is a fraction of the transfer cost.
Conclusion
The decision to waive transfer fees for properties inherited from grandparents is a progressive step by the Noida Authority. It acknowledges the changing dynamics of family structures and provides massive financial relief to heirs of commercial and industrial legacies.
As we move into 2026, this policy is expected to unlock many properties that were stuck in legal limbo due to high transfer costs. If you are a beneficiary of such a property, keep an eye out for the official gazette notification to take advantage of this new rule.
