It is the best time to invest in Noida-Greater Noida, as the new land acquisition policy of the UP government promises to be an investor’s dream. A K TIWARY writes

If you plan to buy property in the twin cities of Noida-Greater Noida, do not delay. It is the best time to invest as the new land-acquisition policy announced by the UP government recently, promises an investor’s dream in real life. The property rates of twin cities could again skyrocket, thanks to the hefty compensation package announced for farmers.

Under the new policy, undoubtedly, authorities will have to face an extra burden, as developing authorities will be forced to hike the existing rates. It is believed that the district administration is also planning to revise the circle rates (projected at 25-30% hike in existing rates). Such a projected property hike will make both Gurgaon and Faridabad comparatively cheaper to live in. However, in terms of infrastructure like roads, sewers, water and connectivity, Noida-Greater Noida will always be the best. In the new acquisition policy, developers can acquire land directly from farmers and acquisitions can only happen with the mutual consent of 70% of the farmers in a given area. In case of disagreement, the project would be reviewed. In the affected villages where land has been acquired, the developer would have to construct a Kisan Bhavan as well as a model school.

Rakesh Yadav, managing director of Antriksh Group says: “The new policy has been framed to safeguard the interest of farmers. The new policy is a historic step and effort would be made to get it implemented at the national level as the Union government has also planned to bring a land-acquisition bill very soon. The land-acquisition policy of UP is even better than the ones being implemented in Congressruled states like Haryana, as it covers both farmers and developers interest.”

Anil Sharma, CMD of Amrapali Group says: “The whole idea of a majority of villagers endorsing acquisition may act as a non-starter for acquisition due to differing political and social agendas. Even in cases where the government may actually need land to develop some public utility structure or industrial estate, this law may impede their progress. Instead, farmers should be given more generous compensation and should they choose to forgo their right to ask for higher compensation in court, they should immediately be given plots in developed sectors allowing them to profit from the development around them.”

Naveen Raheja, managing director of the Raheja Group, says: “The land-acquisition policy that sprang up in UP after the agitation by farmers has shown some hope but the fact remains that for big developers, UP only means Ghaziabad, Noida and Greater Noida. Apart from this, UP has to improve its image linked to poor law and order situation. This stigma gives it a negative perception in comparison to other states. Not only the land policy, there are so many other problems that UP has to resolve.”

Rahul Gaur, CMD of Brys Group, says: “Planned implementation and fast progress is synonymous with UP. It is believed in the real estate circuit that under the prevailing circumstances, implementation of all the mega plans for UP would see light of day in the next few years. It is clear that those areas where land has already been acquired and compensation distributed to farmers will be out of the ambit of the new land acquisition policy.”

Harmit Chawla, managing director of H Corp Realty Pvt Ltd, says: “The MNCs/TNCs have not shifted their base anywhere in UP as can be seen in the case of Gurgaon. ITeS/BPOs have also coldshouldered UP when compared to other developing cities. The circle rates are more generous in Gurgaon leading to a better realization for the farmer. A farmer can actually buy more tracts of land using that money if he chooses. Also, the opportunity to ask for a higher compensation from a court remains with him even after accepting a compensation cheque. In UP, the circle rates should be brought more in line with the actual transaction values to get it reflected in compensation cheques.”

“It is good that this policy has sought time-linked completion of projects. This is the most important thing for real estate development anywhere. All plans under implementation ought to be timelinked or time-bound with penalty-linked deadlines. A few things that need urgent attention are law and order to meet security needs, removal of bureaucratic delays, dismantling of development authorities which regulate the industry and delay progress, public-private partnership, single-window clearances for the real estate and construction industry, power, water and sewerage to be developed to meet the future demands,” Manoj Gaur, of JP Group, says.

Prashant Tiwari, MD of Prateek Group, says: “UP has been definitely trying to compete in the last couple of years by bringing in development schemes through integrated townships and high-tech cities.

“But UP’s urban development policies should be more favourable to the developers. They should be more stable and well defined. Cities like Moradabad, Lucknow, Meerut, Kanpur, Varanasi, Allahabad, etc, have good potential for real estate development.”

Land acquisition policy of Uttar Pradesh

Builders and developers can talk to the farmers directly. Those farmers who do not wish to claim the compensation in cash will have an option where 16% (plus 7% for Pustaini) of the total area of the acquired land will be returned free of cost after development. Such land shall be transferable. Fifty per cent of the developed land given to the land owner shall be for residential use and 50% for nonresidential use (like industrial, institutional, commercial or mixed use).

The body/undertaking or authority concerned shall itself determine the relative percentage of non-residential use.

The landowner shall have the option of retaining a part of the 16% developed land given to him and obtain cash compensation for the remaining land on the basis of mutual agreement. The rates of cash compensation shall be declared by the acquiring body at the beginning of the project. The land given to the landowner shall be free from development fee or land-use change fee due to the development authority. In addition to the above package determined by the mutual consent, the following benefits shall also be available to landowners.

As annuity

Every landowner, whose land has been acquired, shall be given annuity at Rs 23,000 per acre per year in addition to the compensation amount. The amount of annuity shall be increased by Rs 800 per acre every year. The landowner, who does not wish to avail this annuity, shall be given Rs 2,76,000 per acre in lump sum as rehabilitation subsidy.

Land acquisition policy of Haryana

Builders and Developers can purchase land directly from farmers. For this, builders/developers have to obtain an NOC from HUDA (Haryana Urban Development Authority).

Like in UP, the state government will not interfere in the deals being negotiated with the owners of the land. The landowners will be paid annuity for 33 years apart from the usual land compensation. The amount of annuity will be Rs 18,000 per acre per annum.

Annuity of Rs 15,000 will be increased by a fixed sum of Rs 500 per year. In respect of land acquired as per policy for setting up of SEZs/ Tech Cities/ Tech Parks, in addition to rehabilitation and resettlement package, a sum of Rs 30,000 per acre per annum will be paid for a period of 33 years by private developers and this annuity will be increased by Rs 1,000 every year.



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