The recent judgement by Supreme Court, on acquisition of land between 2006 and 2009 in 65 villages of Noida and Greater Noida, adjacent to the national capital has brought respite to thousands of home buyers besides pushing aside a cloud of uncertainty looming over the real estate sector in that region.
Talking to Reema Sharma of Zee Media Corp, Brig. (Retd.) RR Singh, Director General, NAREDCO said, “Development in major parts of Noida, to be precise Noida Extension, was stalled halfway because of the court orders. As a result, buyers who had booked their flats and paid installments were caught in a lot of uncertainty and financial burden.”
Buyers who had booked houses but were living in rented apartments had to face double trouble due to delay in possession. On one hand, they were paying monthly installment for home loan and on the other hand they were also paying house rent.
“We feel that the buyers will breathe easy and can expect delivery of their flats in a reasonable time from now. Moreover, developers, whose businesses had stalled, will be the happiest lot as they can start construction and complete their projects,” Singh added.
A bench headed by Chief Justice HL Dattu declined the plea by the farmers who had challenged the Allahabad High Court’s October 21, 2011 verdict, which, while quashing the acquisition of land by invoking the urgency clause, had (instead of restoring it) enhanced compensation by 64.7 percent and given 10 percent of the developed land to farmers.
Getamber Anand, Chairman and Managing Director of ATS Infrastructure Ltd and President (National) of CREDAI (Confederation of Real Estate Developers Association of India) told Zee Media,“It is a win-win situation for everyone – farmers, developers and buyers. The decision will give a boost to farmers because the compensation has been increased. However the main point to focus is 10 percent of the developed land.”
“If you calculate the price of per hectare land acquired by the authority, the farmers will benefit a lot. Suppose if one is to give back 10 percent of the developed land from one acre (4,000 sq mt) of acquired land, it will mean 400 sq mt of land. The value of such acquired land is in crores and we are not talking about just one acre of land, there are hundreds of acres of land that have been acquired,” Anand said.
However, the judgement has also led to further speculation that housing prices might go up in the NCR region with the buyers fearing that they might also have to eke out an amount from their pockets.
“Yes rates will hike in the NCR region. Although, it is up to the Noida Authority to decide on how much compensation is to be given. You must also bear in mind that builders cannot alone pay the compensation. But in the long run it will be beneficial for everyone,” Anand said.
Echoing a similar tone, Brig. Sinha said “Prices in Noida and Greater Noida are already high and for new constructions market prices based on input cost will prevail. For disputed land, it is to be seen as to what action is being taken by the authorities. If authorities demand additional land costs from developers, then they will try to pass it on to the home buyers”.
Property rates will go through the roof following the SC judgement because of the renewed confidence in the housing market. “If you had spent Rs 50 lakh for an apartment you can be sure that your apartment’s market value would soon reach Rs 80 lakh,” added Anand.
Anand further said that the farmers are well within their rights to appeal for special consideration, adding that since the judgement was given by a triple bench, a reversal of order is a remote possibility.
Over 100 housing projects by various developers are coming up on the acquired lands and nearly 1.5 lakh people have registered flats in these projects.