Crisis deepens in Greater Noida

The Allahabad High Court cancelled land acquisition in Greater Noida’s Patwari and Dewla villages, deepening the crisis in the Noida Extension area. It may even throw a few builders out of business.
Builders fear similar decisions when the court takes up petitions by residents of other villages in the area in the next couple of days.
At stake in Noida Extension is nearly Rs 37,500 crore, 17 projects and 250,000 flats under construction. Builders have already sold 100,000 apartments and completed 40-50 per cent construction.
Acting on a bunch of petitions by farmers, a Division Bench comprising Justice Sunil Ambawani and Justice S S Tiwari set aside the acquisition of 589.13 hectares in Patwari and Dewla villages in Dadri tehsil of the Gautambuddh Nagar district. The farmers were not given a right to file objections by the Uttar Pradesh government.
The court was of the view that since the land was acquired for residential purposes, there was “no urgency involved” and hence “the acquisition should not have taken place without giving the affected parties an opportunity for hearing, which would have facilitated payment of adequate compensation.”
The land was acquired by the state government through notifications in March and May 2008.
The court decision will hurt over 20,000 home buyers in 11 projects in Patwari village.The project or parts of projects that will get affected are Amrapali’s La Residencia, Supertech Eco Village Phase-I, Nirala Estate and Patel Neo Town, among others.
The order comes a fortnight after the Supreme Court upheld a high court order quashing the acquisition of 156 hectares in the nearby Sahberi village by the Greater Noida Industrial Development Authority. On July 6, the Supreme Court asked the authorities to return the land to the farmers and ensure refund with interest to flat buyers.
Over 100 farmers of Patwari and Dewla villages had moved the high court challenging the acquisition of land by the state government without giving them an opportunity to raise objections. They also alleged that they were not given adequate compensation.
Many believe the episode in Noida Extension will hurt the real estate industry in the national capital region (NCR). “It is a big setback and may spoil the real estate market in NCR. Nobody will believe in any builder,” said a leading real estate brokerage in Noida. “This will create panic among the 100,000 flat buyers and builders will not be in a position to refund the money.”
 “With one project, 70 per cent business of some builders will be affected, and many may go out of business.” The industry is annoyed that third-party interests are being ignored in these cases.