Though the developers have hailed the Allahabad High Court’s judgment on Greater Noida land acquisition, they said existing flat buyers will be immune to higher compensations to farmers although rates for future projects could rise by up to 15 per cent.
The developers also claimed there would be no impact of court’s judgment to quash land acquisition of three villages — Asdullapur, Yusufpur Chak Shaberi and Devla — on builders as well as flat buyers as no projects were launched in these locations yet.
The High Court has ordered the Uttar Pradesh Government to return to farmers land acquired in the three villages of Gautam Buddh Nagar district and pay higher compensation, which could be up to 64.70 per cent of the compensation paid earlier, to affected farmers of other villages.
“The High Court’s decision is balanced, acceptable and in the interest of all stakeholders — be it farmers, developers or flat buyers,” Confederation of Real Estate Developers’ Association of India (CREDAI) NCR Vice-President Anil Sharma told reporters here.
Asked about impact on buyers due to higher compensation by court, CREDAI NCR President Pankaj Bajaj said, “Existing buyers would be kept immune from cost escalation. But, there will be some price rise for future projects on account of rise in costs of land and construction materials”.
The delay of about three months in construction works due to the ongoing legal hurdles will also leave an impact on the pricing of the future projects.
Sharma said the prices for future projects could rise by 10-15 per cent. He said the higher compensation ordered by the court would be borne by the Greater Noida Industrial Development Authority (GNIDA).
It will be unfair if the extra compensation to farmers is passed on to builders, he added.
