DOUBLE WHAMMY FOR BUYERS
Increased compensation to farmers means property buyers in Noida and Greater Noida may have to pay more
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.”