Noida flat buyers move Allahabad HC on its order
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Last Updated: Wednesday, July 20, 2011, 22:08
Noida: The Allahabad High Court order quashing land acquisition in Greater Noida has left thousands of ordinary investors worried who moved the court on Wednesday seeking relief and many banks were worried over the fate of loans, running into hundreds of crores of rupees.

A day after the High Court ordered that acquisition of 589.13 hectares of land in Patwari and Dewla villages be cancelled, the Noida Extension Flat Buyers Welfare Association (NEFBWA) today filed a petition in the court pleading it to hear them before deciding on the land acquisition issue.

"We have requested the court to hear our views before deciding Noida Extension petition," NEFBWA secretary L Sagar said.

Over 20,000 people are said to be affected by the High Court's order.

Meanwhile, the court today deferred till July 26 its hearing on petitions filed by farmers of Roza-Yaqoobpur village in Gautambuddh Nagar district, who had challenged the acquisition of 468 hectares of land by the state government in 2007-2008.

The Noida Extension area is spread over 4,000 acres and an estimated 2.5 lakh houses are being built there. Out of this, about one lakh units have already been sold by builders.

The muddle has left many banks worried over the fate of loans, running into hundreds of crores of rupees, committed to home buyers and developers of realty projects.

"This is an extraordinary situation wherein the government-approved projects have been cancelled. We are examining the court orders," a senior banker said.

Many real estate projects have run into deep trouble after the court order.

Dhiraj Sharma, one of the investors, said: "If I cancel the allotment I will loose money and time. Moreover, I will not be able to get the cheap apartment. My priority is to pressurise the builder to provide the flat at the old rate."

Mohit Balla's story is no different as he is also wondering what to do next after the High Court's order. He says he has no option but to to wait for court's order on a petition filed by several organisations against yesterday's ruling.

Bankers said they are as uncertain as customers. They are still ascertaining the quantum of loans disbursed to borrowers from various branches.

Sources said banks may not have any choice but to invoke bank guarantees in case the loans are not re-paid.

The affected builders also met officials of local authority to find solution to end the present impasse.

The Greater Noida Industrial Development Authority (GNIDA) asked the builders to present a memorandum listing their problems and demands.

"We had a meeting with GNIDA officials today and they have asked us to submit a memorandum with our issues and possible solutions to the ongoing land acquisition crisis," Amrapali Chairman Anil Sharma told PTI.

Meanwhile, senior advocate V Giri said the builders will have to show the way out for the buyers who have been affected by the High Court verdict.

"Builders cannot let the buyers bore the brunt.... the builders will have to compensate them. There is no other way," he said.

He said the builders will have to either refund the deposit amount they collected from the buyers or give other options.

"They may give the option of allotting flats to the buyers in some other undisputed area," he said.

Giri also asked buyers to check about the properties and related information through Right to Information Act before buying any property.


First Published: Wednesday, July 20, 2011, 22:08

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