Ever since Supreme Court passed judgement scrapping land allocations in Shahberi village of Greater Noida Extension, people who booked their dream flats in the region are worried lot.
Noida Extension is originally a part of Greater Noida in Uttar Pradesh. But to add charm to the area, builders decided to sell it under the name of Noida Extension. The area comprises of Khera Chauganpur, Khairpur Gujar, Tusiana, Amanabad, sahberi, Saini, Bissarakh, Patwari, Haibatpur, Iteda, Roja Yakubpur, Chityana Khurd and Yusuf Pur. From these areas, around 2000 hectares of land was acquired by Greater Noida Industrial Development Authority (GNIDA).
The modus operandi of GNIDA was quite simple. They acquired the land from farmers at the rate of meager Rs. 850 per sqm in the name of industrial land. For years no work was carried out at these places. Then the same land was sold to private developers for a whopping sum of Rs. 10,000 – Rs. 12,000 per sqm, earning GNIDA some sweet profit. When innocent villagers came to know of this treachery, they raised their voices and finally Supreme Court verdict scrapping the land allocations came.
In all, over 25 builders are developing 2.5 lakh flats across Greater Noida Extension, but the current verdict only refers to 156 hectares in the Sahberi village. This means only 6-7 builders and their 6,500 flats are currently affected. But that’s enough numbers to set panic amongst the investors in this region. It’s also being heard that neighbouring villages of Bisrakh, Khairpur, Patwadi, Iteda are expected to raise their demands of a roll back so that they can sell directly to builders as well. So, many more projects can face same consequence.
The main affected builders are Supertech, Mahagun and Amrapali. Supertech’s Eco Village II has offered to return the booking money to buyers. Mahagun Mywoods still insists that their project is safe and if you want to cancel the booking, they will deduct 10% of the booking amount! Amrapali Smart City is offering its buyers an alternate flat in their Dream Valley project in Greater Noida. Some other projects affected in Shahberi village are those of Panchsheel Greens and Ajnara Homes.
The fate of other projects in the area like Gaur City One and Gaur City Two is not confirmed. While Gaur City representatives claim that their land is already registered and there can’t be any problems with their project, the truth is a delay in construction is now almost inevitable. Even if the project itself is fine, customers are now finding it hard to get a home loan approved by the bank. After Bhatta-Parsaul incident and now the Supreme Court verdict, banks are wary of investing money in these areas. All major lenders like UCO, PNB, SBI and LIC Housing Finance are being very selective about granting loans for this region. So, for the common man, who bought his dream flat here, it’s not going to be an enjoyable experience at least for now.
The only one’s benefiting from the entire episode has been the builders at Raj Nagar Extension in Ghaziabad. Ever since the problems started in Greater Noida, property prices have said to gone up by 10 to 15% in Raj Nagar Extension!
Meanwhile, Greater Noida Industrial Development Authority has claimed that all buyers who have booked their flats in Shahberi village will be relocated or refunded. They claim that no one will be cheated and if anyone’s not satisfied with the Builder, they can directly approach GNIDA.