More tow­ers for ex­tra money?

Noida Ex­ten­sion home­own­ers wor­ried about how builders will raise money

HT Estates - - Front Page - Van­dana Ram­nani

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.

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