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Noida Extension Buyers Unite Against Builders


Noida Extension Buyers Unite Against Builders

Last updated: August 29 2012
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  • Re : Noida Extension Buyers Unite Against Builders

    More villages move court, tough time ahead for Authority

    With having a dozen villages in Noida Extension moved court (hearing has begun in many cases), seeking quashing of what they term "forcible acquisition" of land, the going for the Greater Noida authority is getting tough by the day. The outcome of these cases will decide the fate of
    Noida Extension, where 2,000 acres of land has been acquired from farmers and allotted to builders for construction of luxury houses. The petitioners include those farmers who have taken compensation for their land acquired by the government.

    The Allahabad High Court on Tuesday fixed July 14 for hearing of petitions filed by groups of villagers from Bisrakh, Haibatpur and Ghanghola. The court also said it would hear the petitions of village Devla on July 26.
    Hearing petitions filed by farmers of Rauja-Patwari villages, the court on Monday asked officials of the state government, the authority and builders to file their reply in a week. The court will on Wednesday hear the case of Badauli village. A bunch of petitions filed by farmers in Bisrakh is due for a court hearing this Thursday.

    Farmers' lawyer Parmindra Bhati said, "About 80% farmers of village Bisrakh have moved court in separate petitions. The court is hearing the matter separately. Farmers in some cases have obtained stay orders from the court." Meanwhile, farmers have begun an "awareness drive" in Noida Extension before their mahapanchayat on July 17 to decide on plans to take cases of more and more villages to court.

    Farmers, who have moved court, say land in their villages was also acquired using the urgency clause - a procedure held illegal by the courts and used as a ground to quash acquisition of 156 hectares of land in village Shahberi -- causing the fate of thousands of houses being built by key real estate developers hang in the balance. About casesThe outcome of pending cases will decide the fate of Noida Extension, where 2,000 acres of land has been acquired from farmers and allotted to builders for construction of luxury houses.

    The high court on Tuesday fixed July 14 for hearing of petitions filed by groups of villagers from Bisrakh, Haibatpur and Ghanghola.



    • Re : Noida Extension Buyers Unite Against Builders

      Farmers blink,want more money,not land

      Noida: In what will be music to the ears of homebuyers buffeted with bad news since last Thursday,farmers in the Noida Extension area on Tuesday announced that they simply wanted a better deal for their land,not the land itself.Striking a sympathetic note for investors,the farmers also said they wanted a solution to the crisis that would not hurt homebuyers.
      At the end of the farmers panchayat at Khairpur village on Tuesday,what emerged was a frank acceptance that the acquisition of their land was a done deal.The elders acknowledged that young peoplein their villages were not keen on a return to the farming days,and the result of trying to turn the clock back now would be a colossal waste for all parties.Massive construction has been done in several villages in the Noida Extension area.As a result,the land has lost its fertility and getting it back does not make any sense, Kisan Sansh Samiti president Manveer Bhati told TOI.
      Hesaidthe mixing of concrete with the top-soil had made the land infertile.
      The farmers made a show of solidarity with homebuyers,maintaining that both were suffering on account of the governments mistakes.The farmers do not have any problem with homebuyers,who booked their dream homes in Noida Extension.We want a solution which will also benefit the buyers.At the end of the day,they are also being harassed by the so-called policy makers of the UP government, Bhati said.

      Striking a defiant note againstG reater Noida Industrial Development Authority,which alone is empowered to acquire and allot land to builders in this area,the farmers said if the authority did not pay them market rates they would move court to seek permission to sell land directly to builders.
      When our land was acquired,we thought we would be paid handsomely.Thats why nearly 82 % villagers accepted the compensation.But after acquiring the land,the authority treated us shabbily,and we were paid paltry compensation, said Khairpur resident and farmer leader Jagdish.

      Farmers basically want 50% of their acquired land developed (withwater,power supply and sewage lines ) and returned to them.Other than that,we are demanding 80 % of the market rate as compensation,and plots to landless farmers.



      • Re : Noida Extension Buyers Unite Against Builders

        Greater Noida: With RERA in place, consumers' pain may have been averted

        NOIDA: With the apex court upholding the judgment of Allahabad High Court on the legality of the land acquisition process in Greater Noida and with more land owners joining issue -more instances of land being acquired under the emergency clause of the Land Acquisition Act are coming to light - the pall of gloom over the real estate sector is not likely to lift any sooner.

        Builders and consumers, who have been at the receiving end, are already at loggerheads. The plight of the consumers won't have been so miserable had a real estate regulator been in place. For about seven years now, people have been clamouring for a special Act meant to protect investors in real estate. The objective is to put in place a specialized domain knowledge-based regulator who would ensure that the consumer is protected both from the vagaries of the builder and from the callousness of the government .

        The RERA (Real Estate Regulatory Authority) Bill has been gathering dust with the centre for about five years now - that's when the first draft was circulated for seeking public views.

        The bill seeks to establish the responsibility of the promoters (read builders) towards the consumers. It has sections pertaining to issues like how the promoter should issue advertisements before beginning construction; how he would be able to request for and receive advance payments for the apartments he is to build; how he could receive payments while constructing; and how he would hand over common areas etc to the resident welfare associations after the projects are completed.

        The bill also seeks to define the role of the consumer and caters to issues like supply of essential services, adherence to local laws and approvals of all kinds . It also addresses issues connected to mortgages and consents required for such mortgages besides the liabilities of consumers.

        Significantly, the Bill deals with the responsibility of promoters regarding the veracity of the facts placed in advertisements or prospectus in order to ensure that the consumer gets the right information before he makes a choice or purchase .

        If the RERA bill had been legislated and been in force today, some of the pain which consumers are facing today may have been averted . The average age of home loan applicants has now dropped to 28 - most consumers are young people just starting out in life. Perhaps young enough to not want to be bothered with the kind of problems which such a lack of regulation have once again thrown up .

        One can understand why the real estate sector is not keen to allow the RERA bill to see the light of day - when such an authority is established , it would make the promoter accountable in ways which he is not used to now. The sector may have pulled strings and ensured that such a law is not enacted - possibly this may be the cause for the delay in bringing it before Parliament .

        It is time the Central Government woke up to the fact that such reforms are inevitable in the urban sector. Sooner or later, these reforms will have to be enacted if the sector is to develop without the ambiguities and scandals it is ridden with today. Perhaps, the Greater Noida meltdown will spur the government into action on this most important piece of legislation.

        Greater Noida: With RERA in place, consumers' pain may have been averted - The Times of India


        • Re : Noida Extension Buyers Unite Against Builders

          जमीन अधिग्रहण पर बढ़ी प्राधिकरण व बिल्डरों की टेंशन

          नोएडा एक्सटेंशन के गांव साबेरी में जमीन अधिग्रहण रद किए जाने के बाद प्राधिकरण व बिल्डरों का तनाव समाप्त नहीं हुआ है। हाईकोर्ट में नोएडा एक्सटेंशन के कई अन्य गांवों का मामला विचाराधीन है। साबेरी के मामले से सबक लेते हुए प्राधिकरण कोर्ट में अपना पक्ष मजबूती से रखने की योजना तैयार की है।
          बिसरख, पतवाड़ी समेत कई अन्य गांव के किसानों की याचिका पर हाईकोर्ट में बृहस्पतिवार को सुनवाई है। कोर्ट में बचाव के लिए प्राधिकरण ने पूरा खाका तैयार कर लिया है। प्राधिकरण अदालत को बताएगा कि उसने जमीन का अधिग्रहण विकास के लिए किया है, किसी का फायदा पहुंचाने के लिए नहीं। जमीन पर क्या-क्या परियोजनाएं चल रही है। इसकी भी विस्तृत रिपोर्ट तैयार की है।

          किसान को मनाने में जुटे बिल्डर
          साबेरी गांव का जमीन अधिग्रहण रद होने के बाद नोएडा एक्सटेंशन के कई अन्य गांव के किसान कोर्ट में जाने की तैयार कर रहे हैं। किसानों को मनाने के लिए बिल्डरों ने पूरी ताकत झोंक दी है। बिल्डर के प्रतिनिधि गांव-गांव में जाकर किसानों के सामने अपनी समस्याएं रख रहे हैं। उन्हें हर तरह से मनाने का प्रयास कर रहे हैं। किसानों को समझाने का प्रयास किया जा रहा है कि कोर्ट में जाने से उन्हें लंबी लड़ाई लड़नी पड़ेगी। समय व पैसा भी उनका बर्बाद होगा। इसका असर क्षेत्र के विकास पर पड़ेगा। विकास होने पर ही उनकी जमीन का महत्व बढ़ेगा।

          -Dainik Jagran


          • Re : Noida Extension Buyers Unite Against Builders

            Difficult problem, difficult solutions

            This is a unique situation. For governments, development authorities, lenders and borrowers alike. On Wednesday, a Supreme Court (SC) Bench headed by Justice GS Singhvi upheld a verdict of the Allahabad High Court that quashed acquisition of 176 hectares of land from farmers in Greater Noida stating that the authorities were “sub-serving” private builders in the name of public interest.

            Land purchased from the government was always considered ‘clean’. This verdict, however, has questioned the way land is acquired and the manner in which land use is changed. The rules of the real estate business has been changed forever.

            What the Act says

            According to the Land Acquisition Act, 1894 (Sections 4 to 9) the government has to notify the land it wants to acquire, invite public response and hold a public meeting. The compensation needs to be paid thereafter and “every declaration shall be published in the Official Gazette and in two newspapers circulating in the locality...invite public hearing and hear objections...and such declaration shall state the purpose for which it is needed...the declaration shall be conclusive evidence that the land is needed for a public purpose or for a Company...”.

            In this case, the Greater Noida Development Authority (GNIDA) is accused of denying a public hearing and for acquiring the land by invoking an “emergency” clause ostensibly for industrial development. SC dismissed the petitions filed by the Uttar Pradesh government, GNIDA and the three builders - Amrapali, Mahagun and Supertech - and said that the state was the biggest land grabber depriving farmers of their livelihood.

            The financial impact

            Experts believe that the area affected does not involve huge financial losses, be it for the developer or the customer. “It is not an insurmountable issue. Most of the customers have paid just 10 per cent as booking amount. The builders involved are in a position to handle this. Had it been a developed property, the impact would have been much harder on both the parties”, said Pankaj Bajaj, Managing Director, Eldeco.

            Manoj Gaur, chairman Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR, said, “The government’s acquisition policy has been challenged, and it is the developers who are being penalised for something they are not involved in.” Two of the six developers are carrying a clarification on their respective websites. Mahagun India said: “Mahagun India further likes to clarify that before the honourable High Court of Allahabad in this matter, Mahagun India Pvt. Ltd. (MIPL) was not a party. The matter involves a dispute between government, government agencies & land holders. MIPL is a bona fide genuine bidder for the allocated land for which the company has initiated legal diligence.” Shiv Priya, executive director, Amrapali said that the SC order has resulted in a Rs 100 crore loss, but the customers will not be impacted because 3,500 of them have already been re-located to other projects and some have been refunded their booking amount.

            Impact on nearby areas

            “After this court order, we will acquire all future land keeping in mind the market price and hence will have to pay higher land prices. The sale prices will increase and consumers will be impacted severely,” GNIDA CEO Rama Raman told PTI on Friday. The developers believe that the entire issue will have a huge impact on consumer sentiments. “For short term there will be nervousness. Some more farmers from other areas may go to court. If this happens, the supply will get restricted and the prices of ready- to-move units will go up”, says Bajaj. Expressing similar sentiments, Rajesh Goel, MD, RG Group said, “We have suddenly seen an upswing in the demand by 10-15 per cent and thus prices have also risen by 5 per cent making the demand supply gap narrow down.”

            The experts however advise consumers to take it easy. “It is a time of confusion and whatever price builders in other areas quote is based on speculation. It is better to wait and let some time pass rather than locking oneself to a higher rate,” suggests Mumbai-based financial expert, Suresh Sadagopan.

            Impact on funding

            The developers in India were already reeling under lack of funds, both from domestic as well as foreign private equity investors. The industry players believe that such news would hit the sector hard, in terms of the sentiments as well as actual fund flows. Sachin Sandhir, managing director and country head-India, Royal Institution of Chartered Surveyors says, “There isn’t much funding coming into the real estate sector. Now whatever funding comes would come with strict terms and conditions. The delivery of the projects were not happening. This will further add pain to the sector.”

            Responsibility of GNIDA

            “Land bought from government is considered cleanest. If we are even facing problems in that then we need to rethink the entire strategy of land purchase”, says Getamber Anand, managing director, ATS group, echoing the sentiment of the developers. In order to limit their losses, the GNIDA should compensate either by providing alternate land or by refunding the land cost charged from them, said RR Singh, director general, NAREDCO, an industry body. “This is a fault of the policy and not developers. Land registry system requires huge reforms. How the value of land is arrived at is very ad-hoc”, says Sandhir.

            Impact on borrowers

            “When a borrower signs on a home loan document, s/he is bound to repay the loan irrespective of the fact whether the title is clear or not. There is no protection for consumers in such cases”, says Adhil Shetty, CEO of Bankbazaar. Financial experts suggest that booking a house on barren land is a bad idea. “Over 55 to 60 per cent of the home loans in India are for under-construction properties. This is an enormous risk for the entire financial system”, says Harsh Roongta, CEO, Apnapaisa. Sources in the banking sector indicate that big lenders like HDFC are unlikely to fund projects in this region. SBI on Friday said it will not finance projects involved in any land dispute. Extension of loans for such projects would come down drastically, sources indicate.

            The impact on the affected area may be limited, but nevertheless it is a wake up call for all stakeholders to address the issue of land titles seriously

            -Indian Express
            Last edited July 13 2011, 11:16 PM.


            • Re : Noida Extension Buyers Unite Against Builders

              Ia m not sure how long this drama would continue between builders, authorities and farmers but buyers should get back their booking amount and invest somewhere else.


              • Re : Noida Extension Buyers Unite Against Builders

                Farmers may stop work in Noida sectors
                Attached Files


                • Re : Noida Extension Buyers Unite Against Builders

                  Now, farmers plan to target projects in city

                  Even as the dust of Noida Extension is yet to settle down, farmers of 10 villages in Noida have threatened to storm the sites of about a dozen key real estate players and stall construction of about 20,000 units in multi-storey residential towers coming up in 8 sectors of the city. The farmers, who have already done it once on May 16, have threatened to stall these projects on July 20. In some cases, work till the seventh floors have been completed.

                  The threat has come despite the fact the authority chief executive officer (CEO) Rama Raman has categorically said that stern action will be taken against those stalling work at sites, which are not legally disputed.
                  Farmers are demanding 50% of their land’s market value as cash compensation, settlement of abadi land disputes (returning to farmers wrongly acquired abadi land or, in some cases, freeing encroached areas from farmers) and allotment of developed land (5% of the total land acquired) plots as part of rehabilitation benefits.

                  On May 16, hundreds of farmers of Sorkha Jahidabad, Sarfabad, Baraula, Parthala, Kakrala, Salarpur, Gadhi Chaukhandi, Bahlolpur and Morna reached the builders' sites in sectors 74, 75, 76, 78, 79, 117, 116 and 113 and stopped work. Noida authority had sought from farmers one month’s time to address the issues. The authority said it would hold special camps and allot the 5% plots.

                  There has not been much progress but officials put up a brave front.
                  “We have held hearings in three villages to solve abadi land disputes, which will lead up to allotment of developed land plots. As for the demand of greater compensation, we have communicated the matter to state government. Lucknow will take a call.”

                  Farmers are not impressed. Farmer leader Naresh Yadav said, “The authority has not respected its deadline. There is only one week left before our deadline expires. I don’t think they will be able to concede our demands in a week. We held a meeting on Sunday last and decided in case our demands are not met, will stop work at sites and resort to an indefinite agitation.”

                  He said, “Land was acquired from us at R400 per sqm and sold to builders for R10,000 per sqm. The acquisition was principally done for industrial development and, midway, the land use was changed to that of so-called planned development. Our objections were not listened to.” There are more than 800 claims of 5% plots. No such allotment has been done since 2005, he said.

                  Farmers, apart from cash compensation, also get plots (5% of the total land acquired) in developed sectors through lottery and after payment of development charges as part of a rehabilitation plan.



                  • Re : Noida Extension Buyers Unite Against Builders

                    Fear of litigation worries buyers in Noida Extn

                    Greater Noida: While the Supreme Courts directive to builders on refunds has cheered investors who were hit by last weeks judgment in the Sahberi case,it has done nothing to quell the fears of other homebuyers in the Noida Extension area.The fate of many such projects remains uncertain as farmers have moved Allahabad High Court disputing the acquisition and subsequent allotment of their lands to builders.

                    We welcome the verdict of the Supreme Court,but what about the people who have booked flats in projects that are now locked in litigation The court verdict can swing either way, said Alok Gupta,a business analyst who has booked a two-bedroom flat in Panchsheel Greens-I.Refund is the last choice for us because several middle-income families,in dire need of houses,had booked flats in Noida Extension for staying there and not as an investment in property, said Gupta.

                    Homebuyers say they want the government to intervene and builders to guarantee that projects will not run into Sahberi-like hurdles in future.Gupta and his friends have even drafted a charter of demands for the builders and the government.
                    Buyers of flats in the Panchsheel Greens-I project are on the edge as 12 of its 29 towers lie in Sahberi village subject to last Thursdays Supreme Court judgment and the other 17 in Itehda village.What would be the fate of towers that straddle both villages said Binu Nair,manager in a Gurgaon-based telecom company.The builder says that my tower falls in Itehda and is safe,but these villagers are also in court and the verdict might go the Sahberi way, said Nair.

                    Buyers say they chose to make Noida Extension their home keeping in mind facilities available nearby but the dream has cracked.We had booked flats as complete products,keeping in view the amenities that would be available to us once the entire township came up.But now my builder is offering me only a part of the product, said Nair.



                    • Re : Noida Extension Buyers Unite Against Builders

                      Shahberi has other parts of Noida Extn very worried too

                      The Supreme Court order on Shahberi village may have brought fresh hope for farmers in surrounding villages of Noida Extension, but builders are hoping that the crisis will not have a spill-over effect on other projects.

                      Farmers at Bisrakh village, in Sector 1 of Greater Noida, moved the Allahabad High Court 15 days after the Shahberi case was brought before the apex court. The High Court will hear the ple
                      a of Bisrakh farmers on Thursday.

                      At 608 hectares, villagers said maximum land was acquired from them, as compared to any village in Noida Extension.

                      Ajay Singh, head of Bisrakh village, said half of the 500 affected families had accepted compensation from the Greater Noida Authority, and are ready to pay it back for return of their land.

                      Sant Singh, a farmer who accepted Rs 2 crore for his 80 bigha land, said he felt cheated. “We have been agitating since 2009. We had no option but to accept whatever compensation was given to us. They never told us our land would be sold off to builders for housing projects at such high rates,” the 61-year-old farmer said.

                      At Patwari village, in Sector 2 of Greater Noida, farmers moved the High Court on July 11. “We believe justice is possible after the Shahberi judgement. After a week of consultations with the panchayat, we decided to move court,” Balraj Yadav, the former head of the village said.
                      Around 540 hectares of land was acquired from this village from 5,000 families, he said. “80 per cent of these families have accepted compensation.”

                      Since 2009, the villages of Bisrakh, Patwari, Shahberi, Roja, Haibatpur and Itera have formed an organisation to deal with land acquisition matters. Manveer Bhatti, chairman of this organisation, said, “The Shahberi judgement has given us hope.” According to him, 20 farmers at Bisrakh had already obtained stay orders on construction work on their land.
                      Bisrakh and Patwari villages house many big projects, including parts of Supertech’s Ecovillage I and III.

                      “A majority of the farmers in these two villages have taken compensation. In Shahberi, of 200 farmers, only 40 had accepted the money. These projects are safe,” said Mohit Arora, Director of Supertech.

                      Ashok Chaudhary of Panchsheel, who has a project in Bisrakh, agrees. “Our Hynish project is in Bisarak. But nearly all the villagers have accepted monetary relief. We are sure that these projects will not get the same treatment by the honourable court,” Chaudhary said. Parmindra Bhati, lawyer for the farmers of Bisrakh, said these villages were no different than Shahberi. “Even in these villages, all the farmers did not accept the compensation given to them. In Bisrakh village only 50 per cent of farmers accepted the compensation and that too under pressure. More importantly, residential land was forcibly acquired. To save their homes, farmers had to accept the money from the Greater Noida Authority,” he said.

                      Indian express


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