More towers for extra money?
Noida Extension homeowners worried about how builders will raise money
Though the Allahabad High Court verdict has assured them that their homes are safe, the one lakh people affected by the Noida Extension land acquisition imbroglio are still a worried lot. They are confused about the loan disbursements by banks and fear that the builders will pack more floors and towers in their projects to raise money for compensation to farmers.
The Allahabad high court last week quashed the land acquisition in the three villages in Gautam Budh Nagar district – Asdullapur, Yusufpur Chak Shaberi and Devla. It also directed that the affected farmers of about 60 other villages should get higher compensation, which could be up to 64.70% of what is already paid and 10% developed land.
The Greater Noida Industrial Developement Authority chief executive officer Rama Raman had said that the authority will pass on to land allottees the additional burden of up to R3000 crore it will incur, following the Allahabad High Court direction to pay higher compensation to farmers.
Developers point out that the amount works out to approximately R1 crore an acre. “The authority has given builders an opportunity to increase the FAR from 2.75 to 3.5. The builder may have to buy the additional FAR and he can recover the amount only by building more apartments in the same complex. That is the only way to leverage the additional costs, the only formula to ensure that projects in the area are not stalled and the old customers do not have to pay more,” says Pankaj Bajaj, president, CREDAI NCR and managing director Eldeco Group.
Developers in the area have decided not to raise prices for existing buyers, the prices of new units in the area will increase by 15-20%.
R P Tyagi, president, Noida Extension Flat Owners and Members association (NEFOMA) says that their group will get in touch with all the developers in the area after Diwali festivities are over. “A meeting of the association will be held shortly to discuss restarting of construction work, disbursement of loans by banks and the intent of developers to increase FAR,” he adds.