The state government’s decision to waive interest on builders’ dues on housing land for disputed period is set to have the biggest impact in the troubled realty hub of Noida Extension, now know as Greater Noida West.
Due to the dispute between farmers and the Greater Noida authority, most of the housing projects here were stalled and got delayed for many years. But now, after the zero period policy, builders may get relief from interest that resulted in default by the builders.
Spread over an area of 3,000 hectares, Greater Noida West was once ground zero for disputes between farmers and Greater Noida authority over compensation. Land of Patwari, Shahberi, Khairpur and Bisrakh villages, among other adjoining ones, on which Greater Noida West has been developed, remained under litigation from 2011 to 2015 as farmers refused to give their land for housing projects. The matter was settled after court intervention and farmers agreed to give their land on the condition that the authority will give them additional compensation of 64.7% and developed residential plots.
“Construction remained halted between 2011 and 2015 as farmers continued their protest and filed petitions in courts. In around 70-80 projects, construction was disrupted for around four years. Now, if the Greater Noida authority will waive off interest for this period it will benefit many builders and this impact will also be passed on to homebuyers. The UP government move will have huge impact on developers working in the Noida Extension area,” said Amit Modi, vice-president of Western UP wing of the Confederation of Real Estate Developers Association of India (CREDAI), a builders group.
Meanwhile, builders said the UP government should have taken a decision on recommendations made the expert committees a lot sooner.
“The UP government could have taken a decision on this long back. But the move is going to have a positive impact on the real estate sector as many developers will be out of the defaulters’ category. We welcome the move and hope that it will be implemented without any delay,” said Getambar Anand, former national president of CREDAI.
“We will comment on the issue once the state government’s minutes of the meeting will be sent to us,” a Greater Noida authority official said, adding that they are awaiting the final order from the state government.
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