What Is Functional Certificate ?

Functional Certificate, as per norms, is issued by the Industrial department of the Noida authority. As per the recent Board meeting held by the Noida authority it is made mandatory for every commercial property to get a Functional certificate from the authority. Earlier this certificate applied to industrial property only but now this new rule is applicable for all types of commercial property(office spaces/retail shops). Now as per the changed rule one has to make the property functional before selling it to the other person failing which one cannot sell or purchase commercial property.

The Industry department of the authority checks all the relevant documents and it also conducts an inspection of the site as well before issuing the Functional certificate to the owners.

Prerequisites/Requirements/Enclosures for getting Functional Certificate

An application by the allottee (on letterhead of Firm/Company/Trust/Society whichever is applicable) has to be submitted with a list of below enclosed documents in the concerned office.

• No dues certificate issued by the concerned Accounts officer stating all dues have been cleared
• Affidavit by the allottee with  a declaration of Date of functioning (in the prescribed format)  
• Copy of the Completion certificate or occupancy certificate. 
• Industrial allottees need to give an affidavit (in the prescribed format) against Completion certificate or occupancy certificate
• Documentary evidence in respect of declaration of Date of functioning has to be provided which includes the following:
• Copy of Permanent Small Scale Industry(SSI) Registration Certificate 
• Copy of SIA registration
• Trade Tax Registration copy
• Software Technology Parks of India(STPI) registration in case of IT/ITES units
• Registration copy of shop establishment (applicable for shops/commercial enterprise)
• Meter Sealing Certificate
• Electricity bill
• ESI registration copy
• PF deposit/registration statement
• Bank Statement copy
• Income Tax assessment orders/returns copy
• Sale & Purchase bills copy

Functional letter to those units not registered as SSI units will be issued after the inspection has been done by a team of two officers nominated by AGM/DGM/GM industries.

Functional letter received by the allottee after his demise shall hold good to his successor(s)/legal heir(s). In this regard the date of functioning in favour of such successor(s)/ legal heir(s) shall be treated the date of their coming on Authority’s record

Time Period to become functional

The 95th Authority Meeting held on 16.12.1998 in which the decision regarding time period for a unit to become functional is:

Prescribed time for functioning on built up premises is 2 years

Prescribed time for construction of building & functioning is 3 years in case of plots

In case of Transfer cases:

In case of Transfer after the transfer one year period is allowed to construct the building/ make the unit functional from the date of transfer memo

 Thereafter rate of extension charges are applicable as in normal allotment case.

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