HC annuls land acquisition in 3 UP villages, higher compensation in 61; Cost to be passed on to builders; Real estate rates could rise 20%
The Allahabad High Court on Friday annulled land acquisition in three villages (Deola, Chak Shahberi and Asadullahpur) of Noida and Greater Noida in Uttar Pradesh.
While the land acquired by the Noida and Greater Noida authorities has to be returned to the farmers in the three villages, there are no residential or commercial projects in this area.
In another 61 villages of the region, the court ordered settlement and resolution of the land acquisition issue through additional compensation of 64.7 per cent. Plus, 10 per cent of developed land has to be returned to the farmers in these 61 villages. There are 78 projects and more than 30 builders across these villages. Among the major builders here are Amrapali, Supertech, Gaursons, RG Group, Panchsheel, Rudra, Paramount, Patel, Ajnara and Nirala, to name some.
The verdict could drive real estate prices up by around 20 per cent in the area as builders will have to shell out serious money to compensate farmers.
| LANDLOCKED July 19 Allahabad HC quashes acquisition of 600 hectares in two Greater Noida villages Sept 12 Court begins hearing on 400 Noida Extension farmers’ plea against land acquisition Oct 21 Land acquisition quashed in 3 villages, Deola, Chak Shahberi, Asadullahpur |
Peripheral markets may also see a demand uptick, thereby escalating prices. The Greater Noida Industrial Development Authority (GNIDA) will have to pay an additional compensation of 64.7 per cent to the farmers in 61 villages, which works out to Rs 54 lakh per hectare. The earlier compensation ordered was around Rs 85 lakh per hectare. The total land in question is 10,000 hectares, according to lawyers involved in the case.
Although the exact compensation math is yet to be done, GNIDA officials told the media the additional burden from 64.7 per cent compensation would be to the tune of Rs 3,000-4,000 crore. A GNIDA executive said late in the evening the additional burden would be claimed from the current and future allottees of land including builders, institutions and industries. With this payout being loaded on to the builders, the burden will ultimately be passed on to buyers.
A farmers’ lawyer in the case, Pankaj Dubey, said the lease agreement had a provision that any additional compensation would be forwarded to the lessee as the authority worked on a no-profit, no-loss basis.
Many farmers Business Standard spoke to said they were planning to move the Supreme Court after Diwali. They are asking the authorities to return them 50 per cent of the developed land, and a higher compensation package.
The UP chief secretary has been directed to get an inquiry conducted into the entire process of allotment of land to private builders by an officer not below the rank of secretary and submit a report to the state government.
“The farmers are not happy with the decision and they have decided to move the apex court,” Pramendra Bhati, one of the counsel representing the farmers, said.
Dubey said the farmers in Askarpur, Batauli Bangar and Sakipur villages would move the Supreme Court, as they wanted their land back.
Manoj Gaur, managing director, Gaursons, a builder which operates in the area, said the authorities may ask the allottees, be it builders or plot holders, to pay up. “That amount will be decided by the authorities,” said Gaur.
Anil Kumar Sharma, chairman and managing director, Amrapali Group, said, “Even if they (GNIDA) impose a part of that compensation on us, we do not have any problems. We are ready to pay.”
On the extent of the price rise, R K Arora, chairman and managing director, Supertech Group, said all developers would have to take a decision together. “Prices in the area may go up in the range of 18-20 per cent”, said Aman Gupta, executive director, RG Group. As for the impact on current customers, he said, “It will depend on how the authorities load the additional compensation on us”.
Land sold to builders for residential projects is estimated to be 19 per cent of the total acquisition in the region. The remaining land is for industrial purposes, educational institutes, road development, etc.
Confederation of Real Estate Developers’ Associations of India (Credai) president, Lalit Kumar Jain said earlier in the day, “There will be no impact of the increased compensation on the buyers who have bought till now.”
Sachin Sandhir, managing director, Royal Institute of Chartered Surveyors (South Asia), said with the latest judgment favouring the farmers, the sentiment in the market was likely to be downbeat. “With compensation packages further revised, the end-user may have to bear the brunt of the judicial decision and shell out additional capital to acquire residential units in the area,” Sandhir said.
R R Singh, director general, National Real Estate Development Council, said, “Following the policy of prevention rather than cure, the decision to quash acquisition of land in three villages will serve to avoid future litigation that may arise.”
