Tension everywhere! Builders, developers, investors, home buyers and even the Greater Noida Authority. But the big news today is that the Supreme Court is also pissed off with the scenario. Chief Justice S.H. Kapadia, on the land acquisition dispute in Noida, said “Developers keep building their projects and suddenly a petition comes in the public welfare. The biggest problem in front of us today is regarding the residential plan. Now the problem is related to the investment of crores of rupees.”
The heat of land acquisition dispute in Noida Extension is now reaching up to Sector 74, 118, 119, 137, 143, 151 and 168 in Noida. The home buyers, obviously, are concerned about their hard earned money. But the builders have no answers to their queries.
Demanding higher compensation, the farmers claim that they were paid somewhere between Rs. 270 to Rs. 420 per square meter. Moreover, they were promised more rehabilitation facilities as per the new land policy of the state besides 5% developed plots in lieu of their abadi land.
Till now, the Supreme Court has stated all the orders in the favour of farmers only. But there are still a dozen of villages left on which the decision is yet to come. So the farmers have now threatened the Authority that if their grievances are not addressed then they will be forced to resort to violence and stop all the ongoing construction work of private housing societies. Now they are demanding compensation according to the present circle rate of Rs. 5,500/- per sq. m., apart from regularization of abadi land and getting back 5% of total acquired land.
Banks are planning to seek a special dispensation from the Reserve Bank of India to do without setting aside funds for possible default on these loans. So far, the banks have not faced any problem in getting their dues as individuals usually stick to repaying loans. But they are not as sanguine about the builders.
Builders are the biggest worry to the lenders today. Banks fear that some builders may use the court ruling as ground to defer payments. In case of Noida Extension, all borrowers would not default and only a small part of the exposure would be affected. But banks are dealing with a unique situation where collateral land for loan has vanished.