Noida Builders' Unsold Flats May Be Given To Agitating Farmers
The unsold inventory lying with Noida builders might be given to farmers as compensation, if the suggestions of the Noida district magistrate are accepted by the Uttar Pradesh government. According to a report in Hindustan Times, in a letter to the state chief secretary, DM BN Singh has suggested that the three development bodies in the region — the Noida Authority, the Greater Noida Authority and the Yamuna Express Industrial Development Authority (YEIDA) — should make use of the unsold flats and commercial establishment of developers to compensate farmers who have been staging frequent agitations owning to long delay in compensation.
The DM has urged the state government to form a uniform policy in this regard to provide an innovative solution to this major issue.
Beginning 2007, huge tracts of land was acquitted by the development bodies to expand the area to accommodate more people and economic activity in the region — the Noida Authority acquired 13,000 hectare (h) land from farmers while the Greater Noida has in its possession 40,000 h of agricultural land. The YEIDA have 12,000 h of agricultural land.
At that time, developers paid only 10 per cent of the total land value and were expected to pay the reaming amount by and by. That has not happened. Together, these three financially stressed bodies have to recover a total of Rs 25,000 crore from real estate developers in the region.
About 94 developers owe the Noida Authority Rs 15,000 crore.
About 126 developers owe the Greater Noida Authority Rs 6,000 crore.
About 28 developers owe the YEIDA Rs 4,000 crore.
It is worth mentioning here that the Noida real estate market has remained the most adversely impacted throughout the sluggish period that started in early 2014. Despite it being a market that primarily offers affordable homes, sales number have remained dismal, severally impacting builders’ finances.
“The three authorities are yet to give money or plots thousands of farmers. The authorities are unable to give plots due to the paucity of suitable land and monetary compensation due to the shortage of funds. Builders are also facing the same problem of cash crunch due to a slowdown in the realty sector,” the DM said.
Consequently, developers' body, the Confederation of Real Estate Developers Association (Credai), has welcomed the suggestion.
If the government frames a policy based on the suggestion, it can help solve issues faced by the builders. It will be a win-win situation for all, the farmers, the builders and the government,” Credai President Getambar Anand was quoted in a Hindustan Times report as saying. Anand is the chairman and managing director of real estate major ATS Group.
In his letter, Singh has also said that the regular agitations by the farmers that is already hindering progress of infrastructure projects in the region could also impact the progress of the new developments in the region. The Jewar Airport would become the biggest casualty if that happens, says the DM. The government says operations at the second airport in the national capital region could start in another six years. The agitating farmers have been staging their protests at the Eastern Peripheral Expressway, the Delhi-Mumbai Industrial Corridor and the Faridabad-Noida-Ghaziabad Expressway.