Developers spent another day trying to calm the nerves of buyers who had booked houses in Noida Extension. The sales executives were busy attending calls and answering queries of buyers, after the Supreme Court order yesterday.
Though the crisis affects only 6-7 projects in 392 acres of land in Sahberi village, the perception is that the whole of Noida Extension (2,500 acres) has been affected. The order affects only 6,000 buyers, while 250,000 apartments are being built in the area.
“There’s a state of confusion, and we are trying to clarify to buyers that the problem is limited to land in one village, and doesn’t affect the whole of Noida Extension,” said Manoj Gaur, Gaursons chairman and president of Credai’s Western UP chapter.
Buyers are nervous as there are 33-odd villages that have gone to court, and some fear these cases could go the Sahberi way. There’s a difference though. “Farmers who have taken compensation cannot challenge acquisition of land,” said Gaur.
In recent judgments on Gulistanpur and Surajpur villages in Greater Noida, which came after the Allahabad High Court judgment on Sahberi, the farmers were divided in two types: Those who had taken the compensation and those who had not.
Developers say farmers who have taken the compensation have lost their right to challenge land acquisition, but they could seek an increase in the price. Barring Sahberi, a fresh acquisition, others are old cases, developers say.
Ball in authority’s court
Developers are looking up to the Greater Noida Industrial Authority (GNIDA) to return the land to villagers in Sahberi, and renegotiate with farmers who are keen to sell their land but are seeking higher compensation. More important, they want the authority to come out and say Sahberi is one-off, and all is well with Noida Extension.
Severely reprimanded by the court, the GNIDA would like to study the SC order before it chalks out a strategy and renegotiates with farmers. The Supreme Court order is not yet available online, but lawyers say the apex court has dismissed GNIDA’s appeal against the Allahabad HC order. Beyond that, SC has not said anything. So, GNIDA will have to follow the HC order and return the land.
Yet, there’s scope for a solution. “The court orders have not taken away the authority’s right to acquire land. It can return the land, and negotiate afresh with the farmers,” said ATS Developers Managing Director Geetamber Anand. According to the UP Industrial Area Developement Act, developers can’t acquire land directly from farmers in Noida or Greater Noida, says Supertech Chairman R K Arora. If developers pay more, it will eat into their profits.
Developers say the real issue is that farmers want better compensation.
Land was acquired at Rs 850 a sq metre in Sahberi and elsewhere in Noida Extension, and sold to builders for Rs 10,500-12,500 a sq metre. So, there’s a perception that the authority acquired land cheap and sold to builders for huge profits. But this is not entirely true. First, the price of Rs 850/sq metre is just one part of compensation.
Besides this, farmers get 6 per cent of the land for resettlement and rehabilitation, 50 per cent of which can be used for commercial purpose. Plus, when the authority comes up with a housing scheme, 17.5 per cent of the plotted schemes are reserved for farmers. More important, only 50-55 per cent of the land bought by an authority is usable; the rest goes in creation of infrastructure like roads, water tanks, sewage lines and green spaces.
Developers say the episode in Noida Extension will be a setback for the entire industry, as buyers will keep referring to this case and ask questions on the title of the land. “When you are buying land from the government, you would assume the title is clear. Whom do you buy land from? Developers don’t have the expertise to buy land; if they try to buy land directly, some people will hold them to ransom,” says ATS’ Anand.
