DOU­BLE WHAMMY FOR BUY­ERS

In­creased com­pen­sa­tion to farm­ers means property buy­ers in Noida and Greater Noida may have to pay more

HT Estates - - FRONT PAGE - Van­dana Ram­nani

There’s bad news for those who have been al­lot­ted prop­er­ties in Noida and Greater Noida that in­clude group hous­ing, plots, schools, in­sti­tu­tional and in­dus­trial units. They might have to pay ex­tra for their as­sets as the de­vel­op­ment au­thor­i­ties are now plan­ning to re­cover ` 1,800 crore from the de­vel­op­ers for in­creased com­pen­sa­tion to farm­ers whose land has been ac­quired for build­ing projects.

The author­ity has al­ready dis­trib­uted ` 1,800 crore as hiked 64% land com­pen­sa­tion to vil­lagers of 39 vil­lages fol­low­ing an Al­la­habad High Court dated Oc­to­ber 21, 2011. It will re­cover the amount from the builders, who in turn will in all like­li­hood pass it on to buy­ers. While builders have said that the charge is “in­evitable”, buy­ers say that they will not “pay a penny more” to de­vel­op­ers. Le­gal ex­perts also ques­tion whether it is fair on the part of builders to de­mand an additional amount in the name of com­pen­sa­tion from buy­ers as they’ve al­ready been com­pen­sated “well- enough” by the author­ity in the form of ex­tra floor area ra­tio (FAR) al­low­ing them to build more units and sell them to re­cover the ex­tra amount that they may have had to pay.

All al­lot­tees of prop­er­ties in Noida and Greater Noida, both old and new ( those given pos­ses­sion and oth­ers await­ing de­liv­ery), may have to pay this additional cost due to hiked land com­pen­sa­tion. “We, at CREDAI, are try­ing to work out a mech­a­nism by which a buyer may have to pay the pro­por­tion­ate amount due to the buyer, di­rectly to the author­ity. This could be in the form of a de­mand draft in favour of the author­ity,” says Manoj Gaur, pres­i­dent CREDAI (western UP) and MD of Gaur­sons.

“Ev­ery­body will have to pay this additional amount be­cause of the HC or­der. And it is un­avoid­able,” he says, “A buyer will have to pay ` 70 to ` 100 per sq m in Greater Noida. Noida rates are yet to be fi­nalised. The apart­ment owner of a 1000 sq ft area house in Greater Noida will have to pay ` 50,000 to ` 60, 000 more on pos­ses­sion.”

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