23.10.11

Noida land acquisition

In a judgment that sharply questions the UP government’s land acquisition policy but showers relief on at least 50,000 home buyers, the Allahabad High Court on Friday quashed the land acquisition in three villages in Noida but cleared the acquisition of land in 60 other villages on the condition that farmers are paid 64.7% more as compensation for the land acquired from them and given 10% of the developed land (not exceeding 2,500 sq m). Flat buyers can afford a big smile for two reasons. One, no flats or plots had been sold in the three villages of Devla, Yousufpur (Chak Shahberi) and Asadullahpur where land acquisition has been struck down. Two, the amount to be paid on account of the hiked compensation isn’t large; in fact, in many cases, builders like Amrapali, Supertech and Gaursons have assured that existing buyers would not have to pay anything extra. Overall, the verdict brings clarity on scores of residential projects in Noida, Greater Noida and Noida Extension. In future projects, costs would go up, but it won’t be so high as to spike the very notion of affordable housing. Land had been acquired at roughly Rs 32 lakh per acre. A 65% hike on this would mean an additional Rs 19-20 lakh. Distributed over around 100 flats that an acre is likely to have, it works out to about Rs 20,000 more per flat. Farmers in 60 villages to get 64.7% additional compensation — roughly 544 per sq m. The initial rate was 850 per sq m Farmers of these villages to also get developed residential plots, up to 10% of their acquired land, against 6% earlier Acquisition of around 276 hectares in 3 villages — Devla and Chak Shahberi (Gr Noida-Noida Extn) and Asadullahpur (Noida) — quashed. No housing projects were planned in the 3 villages. Farmers to get back land once they return any compensation money already received . Construction halted in 40 villages of Greater Noida until clearance is obtained from an officer of principal secy rank that work is according to NCR Planning Board norms . Buyers who bought small plots directly will have to pay more. Association of real estate developers Credai says there will be no additional cost for existing buyers of apartments. However, some smaller builders may try to pass on cost New buyers will have to pay higher price as builders will pass on costs, though increase may be marginal.

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