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Over 15 residential projects, mostly under construction, are likely to be affected after the Punjab and Haryana High Court on Friday quashed a 2009 Haryana government notification acquiring 1,400 acres in eight villages around Gurgaon in sectors 58 to 63.
It is learnt that a total of Rs 8,000-10,000 crore worth of investment of buyers as well as developers will be hit following the order.
Many builders, such as Tata Housing, Ireo, Emmar MGF, Pioneer, Conscient, Anant Raj and Era, have projects in the vicinity but it is not yet clear whether these or all will be affected by the order, as the ruling is applicable only to some areas.
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In 2010, the Haryana government released 95 per cent of the land acquired to private builders and granted licences for developing residential and commercial projects.
The land was acquired from Nangli Umarpur, Tigra, Ulhawas, Kadarpur, Medawas, Badshahpur, Behrampur and Ghatta.
Sanjay Sharma, Qubrex, a Gurgaon-based real estate consultancy, said, “It will be difficult to assess the impact without seeing the judgment. But it will definitely shake the faith of investors and buyers along with banks, who all invested after proper government approvals on the land.”
Fastest growing market
Gurgaon’s realty market, one of the fastest growing in the country and among the top for investors, will definitely be hit hard.
“This will further add to the already prevailing negative sentiments in the market hit by economic slowdown and investor’s low confidence,” a leading developer having a project in the impacted area said.
The ruling is expected to be challenged in a higher court.
Judge Surya Kant ordered quashing of the notification after petitions were filed by some residents of Badshahpur, saying their prime lands were bought at throwaway prices under Section 4 of the Land Acquisition Act, which has a ‘public purpose’ clause, and handed over to private developers.
