Noida-Extension-News-Updates

GREATER NOIDA: Greater Noida: With baited breath villagers, builders and investors are waiting for the outcome of the Allahabad High Court hearing on the Noida extension land acquisition case on coming Monday. The decision is likely to have a major impact on the Noida extension plans.

The farmers outside the extension have also filed their petitions in the court which would also be heard in the court on Monday.

The Greater Noida Authority is keeping its fingers cross for the hearing as it is of the view that if the court on the basis of Patwari and Saberi, cancels the acquisition of the other villages as well then major builders including Delta, Omicron, JU, MUIE, Knowledge Park-5 and Sector 3 would have to suffer.

The emergency clause of the acquisition which was used for the villages coming under the extension was also applied for other villages too.

Patwari, Sahberi, Bisrakh, Roza Yakubpur, Itheda, Haibatpur, Aminabad, Khairpur and 11 other villages come under the Noida Extension.

Other than these villages, the farmers of the Sakipur, Rasoolpur Rai, Jaitpur-Vaispur, Ghodi Bacheda, Tushyana, Khanpur, Jutpur, Sustyana, Sirsa, Dadha, Dhabara, Dewla have challenged the land acquisition policy in the court.

In these villages, land has been allotted for many residential sectors, IT companies, Educational institutes, Commercial complex and industrial developments.

In addition to residential complexes, Delta 1, 2 and 3 and Gama 2 is situated in Sakirpur village. In Ghodi Bacheda and Dadha Omicron 1, 2 and 3 have been allotted land. The Authority has constructed more than four thousand houses in these areas. If the court quashes the land acquisition, then all sectors are bound to suffer.

GREATER NOIDA: Less than 24 hours after the Greater Noida Authority claimed to have arrived at a truce with the villagers of Patwadi in Noida Extension, hundreds of villagers, many of them from Patwadi itself, held a panchayat in Milak Lachchi village where they rejected the offer of compensation.

Expressing dissatisfaction over the "arbitrary manner" in which the negotiation was done, the farmers claimed they would continue their protests till they are given market rates for the acquired lands. More than 300 farmers from about eight villages took part in the panchayat held under the banner of Kisan Sangharsh Samiti, the farmers` organization at the forefront of the struggle against land acquisition in Noida Extension.

"The Greater Noida Authority officials held closed-door meetings with a few hand-picked villagers of Patwadi and then claimed to have arrived at a deal. About 80% of Patwadi villagers were not consulted," KSS spokesperson Dushyant Naager said.

Famers' lawyer Parmindera Bhati, who spoke at length in the panchayat, said the authority had "duped" the villagers. "Around 20-25 villagers were made to sign affidavits that they would withdraw writ petitions pending for hearing before the larger bench of the Allahabad High Court," said Bhati. "They weren`t even provided letters of assurance of all the promises that the authority made."

"The assent of two-dozen villagers does not mean the affirmation of 1,200 farmers of Patwadi,"

More than a dozen villagers from Patwadi who spoke to TOI said that they do not support the agreement for the simple reason that none of them were consulted. They also claimed that the authority chose to settle disputes with just those people who had issues related abadi land while ignoring the rest of the villagers.

"The authority should speak to all villagers in an open panchayat before arriving at a settlement. The authority should sign written agreements with all villagers, rather than a handful of them, before claiming that the dispute has been resolved," said Sunil Sharma, who owns 12 bighas of land in Patwadi.

The disgruntled villagers claimed that the representatives who had struck the deal were either pressured or had their own vested interests. "We will carry forward with our demands for compensation at market rates," said Akshay Naagar who owns 20 bighas of land in Patwadi.

"The main issue was inadequate compensation, and the Greater Noida Authority has conveniently played this down while reaching a pact with a few villagers and ignoring the rest," said Manvir Singh Bhati, leader of Kisan Sangharsh Samiti. "They will try to force this model upon other villages in Noida Extension," added Bhati.

The villagers claimed that the authority has been trying to divide farmers by appeasing a few who happen to be influential. "In its eagerness to arrive at an out-of-court settlement before 12 August, the authority has been trying to disunite villagers which could further complicate the issues in Noida Extension," said another KSS leader, Inder Naagar.

Homebuyers in Noida Extension can now sleep easy. The Greater Noida Authority has finally managed to strike a deal with the farmers of Patwari village by hiking compensation for them by 550 per sq metre. The farmers were earlier given 850 per sq metre.

"They will also get 8% of the developed land back instead of 6%," said Rama Raman , CEO of the Greater Noida Authority. The agreement was signed between the authority and a 15-member committee that the Gram Pradhan of Patwari had set up.

More than 3,000 hectares were acquired by the Uttar Pradesh government in Noida Extension area of Greater Noida in 2008-09.

This land was later given to property developers who sold close to 100,000 flats to middle-class homebuyers. This acquisition of land was challenged by farmers from the villages in Noida Extension.

The Supreme Court in May had upheld an Allahabad High Court order, which had quashed the acquisition of 156 hectares of land in Sahberi village by the Greater Noida Authority.

On July 19, the Allahabad High Court had quashed the acquisition of 589 hectares of land at Patwari village in Noida Extension, asking the state government to return the land to farmers. Later, the court gave an option to the Greater Noida Authority and farmers in Patwari village for an out-ofcourt settlement in the land acquisition issue by August 12. The court will hear the case of Patwari village and other cases in the area together on August 17.

Recently, homebuyers in the area came together to form the Noida Extension Flat Buyers Welfare Association and they had also organised a march in Noida, submitting a memorandum of their demands to the authority. "This now is a positive development . We are hoping that other cases too will now be sorted out. This should be a precedent for other cases too," said RP Tyagi , president of the association.

"This agreement is only with farmers in Patwari as directed by the court and will be implemented only after the court approves it on August 17," said Raman.

The extra burden of 550 per sq metre will have to be paid by all the allottees of the land, including developers and individual plot owners after the court's final judgement.

GREATER NOIDA: Claiming a major breakthrough in its talks with Noida Extension farmers a week short of the August 12 deadline, Greater Noida Authority on Saturday said farmers of Patwari village had accepted its offer of revised compensation, and agreed to withdraw all petitions against land acquisition pending before Allahabad HC.

The highlight of the pact is a 65% hike in compensation paid for acquired land - from Rs 850 to Rs 1400 per sq m.

Farmers will also get plots equaling 8% of the land given in a sector carved out for them.

GREATER NOIDA: Terming Saturday's settlement a 'sham', a group of Patwari farmers has refused to accept the truce between the Greater Noida Industrial Development Authority and the village. The group claims its consent was not taken into consideration, instead, village head Reshpal Yadav was "forced" to reconcile with the government.

Villagers from other Noida Extension villages too have dismissed the agreement and sought a separate meeting with the Authority.

"The Authority must do what the court had said. We must get back our land in a cultivable state. Reshpal has been coerced into agreeing to the pact by local leaders, the police and the Authority. We never consented to this settlement," said Harish Chand Sharma of Patwari village. "The police is working hand in glove with the Authority. They threatened us with dire consequences if we did not compromise with the Authority. The 15-member team does not represent the entire village," said Pawan Yadav, another resident of Patwari.

As per the settlement, villagers will have to withdraw all petitions against land acquisition in return for enhanced compensation and rehabilitation benefits.

Four of the remaining 10 villages, Bisrakh, Itheda, Roja Yakubpur and Haibatpur have called for a Mahapanchayat on Sunday at Iteda to discuss their demands, said Dushyant Nagar, member, Kisan Sangharsh Samiti. Farmers have consolidated a list of demands to negotiate with the Authority. While their main demand is an increase in compensation, they claim that the new hike of Rs 550 per sqm is not enough.

"We want a hike in compensation amounting to 50 per cent of the total difference between the market rate and the rate at which we received compensation (Rs 850 per sqm)," said Roop Chand Singh, pradhan of Iteda village. "The Authority must give us free hold rights over abadi land," he added.

"The Patwari agreement has no bearing on the rest of the villages. Our demands are different and the Authority must deal with us separately," said Ajay Bhati, pradhan of Bisrakh village.

GREATER NOIDA: In what it claims is a major 'breakthrough' in the ongoing Noida Extension crisis, the Greater Noida Authority on Saturday claimed to have finally reached upon a settlement with the villagers of Patwari where last month, the Allahabad High court had denotified 589 hecatres of land, affecting a dozen developers and thousands of buyers. As per Saturday's agreement, the Authority will pay the Patwari villagers a hiked compensation at the rate of Rs 1400 per square metre instead of the earlier 850 per sq mt and the villagers will withdraw all petitions against land acquisition from the Courts.

Addressing the villagers' long pending demand of sorting out abadi disputes, the Authority has now agreed to regularise all current abadi claims and will additionally give all villagers eight per cent developed plots instead of the earlier six percent against their total land acquired. A host of other development and rehabilitation benefits including 10 per cent reservation for the children of Patwari farmers in educational institutions, skilled and semi skilled training for the unemployed, roads, sporting facilities among other things have been promised too.

In a meeting spanning over three days, senior Authority officials negotiated with a group of 15 village 'representatives' from Patwari who were in turn being advised by a group of BSP leaders like Uttar Pradesh Minister Thakur Jaiveer Singh, MP from Gautam Buddh Nagar Surendar Nagar and D P Yadav. On Saturday finally, the Authority gave in to the Patwari villagers' two main demands viz. A substantial hike in compensation for the land already acquired and a blanket regularisation of all abadi claims. In return, all those villagers in Patwari who have approached the courts earlier seeking to reclaim their land will have to withdraw their pending petitions or, will have to take the required steps for recalling their petitions in case an order has already been passed on them.

"As per the instructions from chief minister Mayawati, we have been trying to sort out the land crisis. The Patwari settlement has come with the consent of all parties and is crucial to the development of the Noida Extension-Greater Noida area," said Mohinder Singh, chairperson, GNIDA. "We strive to maintain the pace and the expanse of development work in the entire area,"

"The farmers'' interests has always been our priority and we have studied the farmers' demands at length and finally reached a compromise that suits them best," said Thakur Jaiveer Singh.

"A group of 15 villagers who are the members of the Patwari gram Samiti had been in talks with the Authority and the ministers on behalf of the village. We are happy that the farmers' will now get their due," said Race Pal Yadav, the village head of Patwari village. Race Pal had approached the court earlier this year seeking denotification of around 200 bighas of his land and is now willing to withdraw that petition. "I will withdraw my petition at the earliest and get the other 30 odd villagers who went to court to do the same," he said.

However, when TOI visited Patwari on Saturday, several villagers voiced their dissatisfaction with the 'agreement.' The villagers instead claim that the agreement has been "forced upon them by the Authority and other vested interests." "I do not want a compromise and simply want my land back from the Authority as directed by the earlier court order. Several others like me have made this clear to RacePal however, even he is being coerced into accepting this agreement," said Harbans Singh, whose 250 bighas of farmland was acquired in Patwari in 2008.

On July 19, the Allahabad HC had denotified 589 hectares of land in Patwari that is the second largest piece of acquired land in the Noida Extension-Greater Noida area. The GNIDA had acquired the land in Patwadi three years ago after invoking the urgency clause on the pretext of laying down "industrial units" and 90 percent of the villagers eventually claimed their due compensation. Besides "Rs 1600-crore-worth" of real estate investments have already been put in the area. However, a little over two dozen villagers approached the HC this year submitting 50 odd petitions seeking the entire acquired land back. The HC order on the Patwari land had complicated matters in the Noida Extension-Greater Noida area since developers had gone ahead with major construction work in the area.

Greater Noida Authority agrees to increase compensation for Patwari farmers by Rs 550 per sq metre.

The farmers were earlier given Rs 850 per sq metre. "They will also get 8% of developed land back instead of 6%," said Rama Raman, chief executive officer of the Greater Noida Authority. The agreement was signed between the authority and a 15 member committee that the Gram Pradhan of Patwari had recently constituted.

"Apart from enhanced compensation, our demand for educational institutes has also been accepted," said Pradeep Yadav, a farmer from the village. The authority has agreed to set up an ITI and an inter college in the village as well as an akhara.

Raman pointed out that earlier farmers were to be given one large plot in lieu of the 6% developed land that was to be given to them. Now, the revised 8% will be given as multiple plots of a fixed smaller size, which will improve the saleability of these plots. Also, these plots will now be on 12 metre wide roads instead of 7.5 metre roads as planned earlier.

The abadi land that was acquired will be leased back (on a 90-year lease) to the farmers at much simpler conditions. Earlier farmers were not allowed to sell leased abadi land for a period of three years and had to take permission from the authority. Now they are free to sell.

"This agreement is only with farmers in Patwari as directed by the court and will be implemented only after the court approves it on August 17," said Raman.

The extra burden of Rs 550 per sq metre will have to be paid by all the allottees of the land, including developers and individual plot owners after the court's final judgement.

Putting the ball in the Noida Authority's court to settle a raging land row, Greater Noida villagers on Sunday confronted it with a fresh set of demands.

The farmers of nine villages in and around Noida Extension - Bisrakh, Patwadi, Roja Yaqoobpur, Haibatpur, Itehera, Ahmenabad, Chauganpur, Khairpur and Chipyana Khurd - served the authority the new set of demands to end the crisis.

"Our demands are genuine and just. If the authority is really keen to negotiate with us, it should have no problems meeting these demands. Our lands have been taken away. We want a safe future for our children. There is nothing wrong in seeking reservation in educational institutions and jobs. We are going to present these demands before the Noida Authority CEO on Monday. We would then present it before the court. We are doing this so that tomorrow the authority does not tell the court that we were not serious in solving the crisis," Ranbir Pradhan, of farmers' body Gramin Panchayat Morcha, said.

Even as the farmers toughened their stand, Noida Authority CEO Rama Raman on Sunday visited Patwadi village and held a meeting with villagers. The authority also sent a letter to villagers who filed writs in the HC to come to the authority's office and negotiate the issue afresh.

"The authority is willing to give us Rs 1,050 more per sqm for our land. We hope to arrive at a compromise," villager Resh Pal Yadav said. The CEO, however, denied having agreed to increase the compensation.

"It is not possible. Tomorrow, other villagers will also demand a hike in compensation. But, we are looking into their other demands. They would be given the benefits of a new rehabilitation policy," Raman said.

Badalpur: Petitions against 2008 takeover likely to be heard today, others in village say blame Authority not Maya

The row over land acquisition in Greater Noida has now reached Badalpur, the home village of UP Chief Minister Mayawati, where opinions seem to be divided.

Over 50 farmers of the village have petitioned the Allahabad High Court against acquisition of their land, saying they were not paid adequate compensation when their land was snatched. Their petition is likely to be heard on Friday.

Others in Badalpur, including the pradhan, remain loyal to Mayawati, saying she cannot be blamed for the "fault" of the Greater Noida Industrial Development Authority (GNIDA).

Around 350 hectares were acquired in 2008 from an estimated 1,200 families by the GNIDA after invoking the urgency clause.

Incidentally, 24 bighas were also acquired from Mayawati's relatives who still live in Badalpur. Lilavati Devi, CM's sister-in-law, said: "Three plots of eight bigha each were acquired from us. We have not moved court yet. But the compensation was unfair and we are yet to get the promised abadi land."

Three years after the acquisition, farmers say their land has been used for developing ten parks and a helipad. Mayawati's dome shaped "kothi" under construction is near the best known parks, Buddha Jayanti Park and Ambedkar Park.

Noida Authority has started acting swiftly to work out an amicable settlement between the UP government and the agitating farmers of Noida to resolve pending disputes. The Authority has identified 100 hectares of land in sectors 116, 117 and 121 that will be distributed among the villagers demanding their share of five per cent developed plots for acquisition of the land.

These 100 hectares of land will be able to meet the demands of around 15 of the 54 villages currently on warpath over greater compensation for their acquired land and resolving abadi disputes.

The Authority chairperson and CEO Balwindar Kumar has been making rounds of the villages, trying to pacify the agitating villagers who have threatened to stop construction work in Noida as well as along the Expressway in case their demands are not met. Visiting Hoshiyarpur village on Thursday, Kumar promised the villagers that the Authority will begin allocating the five per cent developed plots from next week and regularise the abadi or populated sections across Noida.

A host of development incentives like concrete roads, new sewer lines, community centres and piped water supply among other things have been promised to all the villagers as well. A detailed development plan for the same has already been worked out at an estimated cost of Rs 200 crore.

While the Authority has reiterated that it is "practically not possible" for the Authority to meet the villagers' key demand of hiked compensation for land already acquired, it has agreed to sort out all demands of regularization and developed plots .

GREATER NOIDA: The land acquisition fire that has scorched Noida Extension this month has not spared Uttar Pradesh chief minister Mayawati's village, Badalpur, either.

Farmers in the village that lies a short distance away from Noida Extension and close by National Highway 91, are sore over the allegedly high-handed acquisition of 230 hectares of fertile land using the now-notorious 'urgency clause'.

The villagers, some of whom have gone to court seeking return of their land, are outraged as the land was acquired purportedly for industrial use, with the promise of employment to local people. However, it has been used to lay down parks, gardens, roads and a helipad on either side of a private estate with a palatial mansion in its midst.

If you have invested in one of the projects in Noida Extension area and were waiting with bated breath for Tuesday's Allahabad high court judgement on the land acquisition row in the area, your wait just got longer. The matter came up for hearing in the high court on Tuesday but was adjourned till August 17 with the court giving time to the farmers and the Greater Noida Industrial Development Authority (GNIDA) to reach a compromise.

At least 30,000 buyers may have to pay a price for the Uttar Pradesh government's "malafide use of powers", as the Supreme Court put it in one of its judgements' in acquiring land from farmers at unbelievably low prices and selling the same to developers at a much higher price. Farmers allege that the land was acquired from them at Rs 400 per square metre and sold to builders at R10,000-11,000 per square metre.

While the farmers of certain villages are celebrating their victory over the state government and some others are queued up in the court with similar demands, homebuyers who had invested their hard-earned money in projects of this area are left in a quandary.

The story so far

It all started with the farmers of Shahberi village moving the high court earlier this year against the GNIDA, alleging illegal land acquisition and low compensation.

In May, the high court ruled in the favour of farmers, quashing the land acquisition by the GNIDA. On July 6, the apex court upheld the high court,s judgement, cancelling the allotment of five builders. Around 6,500 homebuyers were left in a quandary. Within a few days, SC asked developers to either give a refund to buyers or shift them to other projects.

Inspired by the victory of Shahberi village, farmers of Patwari village in the Noida Extension region went to the high court with similar demands and got a ruling in their favour on July 19. This ruling affected at least 20 projects and at least 25,000 buyers. This was followed by a spate of similar demands by emboldened farmers from at least 9-10 other villages of the region. The High court then decided to club all such petitions in a single hearing on Tuesday.

Exit is tough...

Though SC has asked developers to give an exit option to buyers and refund their money, the process is likely to get delayed. In fact, the process hasn't even started yet. A Noida-based buyer, who spoke on the condition of anonymity, wants to exit Supertech Ltd's Ecovillage 2 coming up in Noida Extension. But in the absence of a formal letter in this regard, he doesn't know how to start the process. On July 19, the firm's managing director, RK Arora, had announced that the company will contact its buyers soon. Many other buyers are finding themselves in a similar situation.

Most developers we spoke to said they would inform buyers about the two options as soon as possible, but admitted that the process may take time.

"We are in talks with GNIDA officials," said Manoj Gaur, chairman, Gaursons India Ltd. "Buyers should not panic. Exit will not be an easy one. This is because we have already invested significantly on construction till date. And if any buyer comes to us seeking refund, giving away the money is not just a 'sign on a cheque' and 'subsequent encashment' of the cheque."

But how long will they have to wait?

"The wait can be of six-nine months or even more, depending on the changing scenario," said Smarjit Singh, managing director, Agni Property, a brokerage firm with a pan-India network.

...and so is shifting

The other option that developers have been asked to give is shifting homebuyers to other projects. However, this would work only if the shifts are happening outside Noida Extension. The reason: with more villages in the region moving court over the issue of land acquisition, other projects may also get affected.

For instance, for its Ecovillage 2, Supertech had given shifting options to Ecovillage 1 and 3. But on July 19, when the high court ruled in favour of the farmers of Patwari village, the land on which Ecovillage 3 was supposed to come up went back to the farmers.

Financing may pose a hurdle too

With uncertainty looming over the region, banks may exercise caution in financing projects there. HDFC Ltd refused to answer queries sent via email. Even ICICI Bank Ltd, which has a small exposure in this region, also refused to answer queries. When contacted on telephone, Punjab National Bank's (PNB) termed the developments of Noida Extension as a Pandora's box, "We adopt certain basic measures and precautions while disbursing loans," said SK Singh, general manager, PNB. "Anything like developments in Noida Extension is completely not anticipated. There are more cases pending before the court."

Moreover, even projects that are not affected in the region may face funding problems. Recently a reader from Ghaziabad, Ashish Dasgupta, wrote to us about such a problem. His lender, HDFC, refused to disburse the pending amount of loan for his project in Noida Extension even though the project is not affected by any judgement. Dasgupta has booked a flat in Mahagun Mywoods, Ebony Tower and his loan was approved by HDFC, Lohia Nagar, Ghaziabad. When he enquired with the branch about the status, the lender said that HDFC has stopped funding projects in Noida Extension.

Mint sent queries regarding the case to HDFC via email, to which the bank replied that it didn't want to comment.

Opt for the refund if the builder is offering it; shift to another project only if it is in an area outside Noida Extension.

Responding to Greater Noida Industrial Development Authority (GNIDA) CEO Rama Raman's offer for an amicable solution of the land acquisition row, heads of several villages in this Uttar Pradesh district Thursday demanded an enhanced compensation of at least Rs.2,000 per square metre for their lands.

'The farmers are not ready to accept any compensation below Rs.2,000 per square metre,' said Sadullapur village head Ranvir Nagar.

'We are the sufferers from all sides, so we the villagers of Sadullapur, Milak Lachhi, Patwari, Rosa, Bisrakh and Vaidpura have decided to file a petition before the Supreme Court,' Nagar said.

'The contents of the petition would be revealed to the media after it is filed,' he said.

'Our livelihood is being sacrificed. We have to see the future of our children, so we will fight against any arbitrarily imposed harsh rule of the state,' he said.

The Allahabad High Court Tuesday referred the Noida Extension land acquisition issue to a larger bench and gave the Uttar Pradesh government and the agitating farmers 17 days to try and negotiate an out-of-court settlement.

The court order came over about 250 petitions that were clubbed as they involved hundreds of farmers spread across 10 villages where some 3,000 hectares of land was acquired by the GNIDA.

Resh Pal Yadav, head of Patwari village, said: 'We have received the invitation letter from CEO of Greater Noida for talks, but we doubt any solution would be found amicably. The officials' hands are tied with laws and our hands are tied with the duty to feed our children.'

The authority earlier said that the global economic recession forced it to convert the acquired land's use from industrial to residential and sell it to realtors.

Greater Noida consists 23 percent residential, 5.6 percent commercial, 16.2 percent institutional, 23.2 green areas, 19.6 percent industrial, 12.1 transportation and 0.2 percent special economic zones, the GNIDA chief said, adding that in Shaberi, the authority had increased some proportion of residential land because of 'certain market compulsions'.

Revealing the strategy of the authority to reach some understanding with the farmers, the CEO said he was confident that the farmers would understand the authority's compulsions and the heavy expenditure it incurred in the land acquisition process.

Accusing the Mayawati-led Uttar Pradesh government of not allowing the Comptroller and Auditor General (CAG) to conduct a special audit of Greater Noida authority and Yamuna Expressway industrial authority, the Bharatiya Janata Party (BJP) Thursday claimed that the special audits could unearth land scam worth around Rs.1 lakh crore.

'We believe that if special audits of Noida, Greater Noida and Yamuna Expressway authorities are conducted, a land scam of at least Rs.1 lakh crore committed by the Mayawati government will be exposed,' BJP secretary Kirit Somaiya told reporters at a press conference.

'As the state government wants to cover up the large-scale bungling that has taken place in the name of land acquisition, it is making every effort to obstruct special audits in the authorities,' he alleged.

Demanding a probe by Special Investigation Team (SIT) into the land acquisition for various projects undertaken by the state government in the National Capital Region (NCR) region, Somaiya claimed, 'We have appealed to the CAG to move the Supreme Court, taking into account the resistance of the state government over the special audits of the development authorities.'

'There are chances that the supreme audit institution of the country will approach the apex court for carrying out special audits of the development authorities,' he added.

Somaiya alleged that in the Yamuna Expressway housing project alone, the state government indulged in financial bungling of over Rs.28,000 crore.

'Records gathered by us indicate that 6,000 acres of land at Noida and in NCR was acquired for the project and handed over in dubious manner to selected builders in 2010,' said Somaiya.

'Land acquired in the name of public purpose was handed over to 10 big builders. Wave Infratech of Ponty Chadda Group was the single largest beneficiary...Around 4,500 acres land was allotted to the single company,' he added.

Likewise, Somaiya alleged large-scale financial anomalies worth Rs.1,400 crore took place in Noida Extension farm house project.

'Around 13 lakh square metres of land was forcibly acquired from the farmers. While in lieu of the acquisition, the farmers were given compensation at the rate of Rs.818 per square metre, the market rate of the land acquired was around Rs.12,000 per square metre,' said Somaiya.

NOIDA: The Allahabad High Court's directive on holding talks with Greater Noida Authority may have calmed the furore surrounding the land acquisition issue temporarily, but union corporate affairs minister Veerappa Moily feels that it's very important to stress upon trying to solve the root cause of the problem. He told TOI that the only way forward was by making sure that everyone's perspective was taken into account.

Moily was in Noida for releasing the book "Law Poverty and Development", a book written by the director of Amity Law School, Maj Gen Nilendra Kumar. Moily said, "The only way forward is through inclusive growth. We need to change our mindsets and understand that there is potential strength in everyone. As long as this mindset doesn't change, laws can't do anything."

KS Radhakrishnan, a Supreme Court judge present at the function, said that the problem doesn't entirely lie with the law. "Judgments aren't wanting and all provisions are present for social justice. The problem lies in implementation. We often lack the will," he said.

Moily pointed out that land is a sensitive issue in the Indian context. He said that it's essential that any issue related to it is handled carefully. "Land is a very sensitive issue and the entire Mahabharata was fought over the same issue. We need to have an inclusive approach to the land acquisition row in Noida Extension. It's very important that we need to take into account the perspective of the farmers. People are educated today and the farmer's problem needs to be looked at, as does the problem of the buyer and the builder," he said.

"The amendment that will be introduced into the Land Acquisition Act will be looking to take such an inclusive stance towards the issue," he added.

NOIDA EXTENSION: With just 17 days in hand to resolve the Noida Extension crisis, Greater Noida Industrial Development Authority (GNIDA) on Wednesday invited farmers of the denotified Patwari village for talks on all contentious issues. At 589 hectares, Patwari has the second largest piece of acquired land in the area, besides "Rs 1600-crore-worth" of real estate investments riding on it.

Coming just a day after Allahabad High Court set August 12 as the deadline for the Authority and the farmers to iron out their issues, GNIDA chief Rama Raman's letter to Patwari headman Reshpal Yadav invites all residents of the village for a dialogue to arrive at a "mutually acceptable solution" in the interest of all stakeholders.

While claiming it would try to address all of the villagers' concerns through direct talks, the Authority on Wednesday made it clear that the final decision regarding higher monetary compensation would rest with the state government. "The villagers have three main grievances, abadi (residential land) disputes, demand for higher monetary compensation, and for 6% developed plots. We have already begun resolving the abadi disputes and initiated the process of lease-back to return the abadi land to villagers. We will soon begin handing over the developed plots," Raman said.

Asked whether the Authority will accede to the villagers' "demand of compensation at par with market rates for their land", Raman added that while the Authority will negotiate with the villagers and "ascertain the compensation rate that they are demanding, the same information will be passed on to the state, and the state government will take the final decision on the compensation rate".

Raman reiterated that the Authority will henceforth "not impose the urgency clause anywhere" and that it will "ensure that the villagers' abadi land is also not acquired under any circumstances." The villagers' case rests on the use of the urgency clause by the Authority to acquire their farmlands.

"The villagers are not against development. They have some grievances and we have been trying to address those. We want to reassure them that they will get adequate compensation and developed land plots," said Raman.

NOIDA EXTENSION: From being the envy of their friends, relatives and colleagues to being reduced to the most desperate straits, the winners of Greater Noida Authority's draw for housing plots in 2008 have seen it all. Today, with the fate of entire Noida Extension looking uncertain, these 4,000-odd plot owners must fend for themselves.

Unlike the roughly one lakh apartment buyers, whose fates are intertwined with those of their builders, and both of whom have been fighting to be heard through their associations, the plot owners are singly left to their own resources. They spend sleepless nights agonizing over the outcome of the farmers' petitions before Allahabad High Court, and are hounded throughout the day by agents who want to frighten them into making distress sales.

"When I got this 200 sqm plot in Noida Extension in a draw in 2008, I was told that I was very lucky," says Saket Budhiraja, who got his plot in the 2008 draw among lakhs of applicants. "Three years down the line, I don't know where my fate is headed" he says.

More than a thousand plots were allotted in different categories in just sectors 2 and 3. "A very conservative estimate would put the total figure of individual plot buyers in Noida Extension at more than 4,000," said a property dealer who did not wish to be identified.

"The scheme was launched with fanfare; brochures and prospectuses were sold through banks and street-side stalls, and the money was pocketed by Greater Noida Authority," says Budhiraja, adding, "I have paid more than half of my installments, partly through bank loans and partly from my own savings". Although he was to be handed over his plot in 2014, Budhiraja couldn't trace it on the ground when he visited the site.

While flat buyers have united under different project-specific groups, as also under the Noida Extension Flat-Buyers' Welfare Association (NEFBWA), which is an umbrella organisation of flat buyers in Noida Extension, to fight their case, the plot owners have failed to unite because they were never told who their neighbours were.

Another plot owner, Sumit Bansal, who works with a private sector firm in Noida, feels his luck has run out on him. "I don't even know whether I should deposit the next installment, which is due for payment soon, with Greater Noida Authority," says Bansal. "I had been sick for the past several weeks and my tensions have grown with this land issue. I haven't even been able to contact Greater Noida Authority," he adds. Bansal had won a 120-sqm plot in Sector 3 of Noida Extension in the 2008 draw.

Anupam Tiwary, a 25-year-old working with an airline, was considered lucky by his family when his name popped up in the lottery of 2008. "My father had drawn a lottery ticket in my name under this scheme," says Tiwary, who, too, is paying installments to Greater Noida Authority for the 120-sqm plot that he had won in Sector 3.

However, all that luck has to offer Tiwary these days is phone calls from numerous smalltime property dealers operating in Noida Extension. "They try to coax me into selling my land, now that they know that the stakes are low," says Tiwary. However, he is determined to not dispose of his land under their pressure.

"Right now, I am still saving from my salary to pay for the possession of the plot," says Tiwary.

Beginning frantic negotiations on Wednesday, the Greater Noida Authority and builders reached out to the farmers, offering them annuity and cash incentives, besides due compensation for their land.

Authority officials and builders on Wednesday held talks with farmers, offering them annuity of Rs 23,000 per acre for 33 years, besides land compensation. Farmers can also get Rs Rs 2.76 lakh per acre if they desire to collect a one-time annuity, according to officials.

The latest move came after the Allahabad High Court had, on Tuesday, said farmers had an option to reach an out-of-court settlement by August 12, after which their petitions would be taken up by a larger Bench.

With the authority approaching farmers to resolve the issue, the ball is now in the latter's, who said they were ready to resolve the issue if the authority took into account their concerns and agreed to part with a share of profit. "Besides the land compensation under the new scheme, farmers will get annuity of Rs 23,000 per acre for 33 years. The farmers can also collect one time payment at the rate of Rs 2.76 lakh per acre if they desire," said a Greater Noida Authority official.

As construction companies deputed their representatives to hold talks, farmers seemed wary of negotiating with them; a majority of them believing their land was now unfit for cultivation. They instead preferred to go ahead with negotiations through the authority.

"Builders have offered an additional amount of Rs 2,000 to Rs 3,000 per square metre as cash incentive. However, it the only the authority which can solve our abadi land disputes. So, the farmers want negotiations to be held through the Government body instead of directly with the builders," said Sukhvinder Bhatti, a farmer.

"We do not want to create hindrance in the development of the city. We too want development. But our main concern is that we should get share in profit," said farmer Raj Kumar.

A majority of farmers in villages other than from Shahberi have taken land compensation through mutual agreement, which they had spent on marrying their children or buying luxury cars and building houses. "Now, they will prefer the option of settlement as they cannot refund the money," said another farmer, Tej Singh.

Some other farmers said the matter would be resolved if the authority takes into account their concerns and agrees to part with a share of profit.

However, while the Greater Noida Authority offered the farmers incentives, CEO Rama Raman told The Pioneer that it was first important to know what farmers really wanted in the current scenario before any decision is taken.

"An expenditure of over Rs 4,000 per square metre has been incurred in the entire land acquisition process. It is difficult to increase the compensation for the farmers but considering the tremendous increase in the land prices in recent time, the farmers' share can be increased. However, the decision can not be taken on my own. The final decision will be taken by the government but before that it is important to know the farmers' response to our offers," Raman said.

He said the authority has sent letter to Patwari pradhan to come forward with a proposal and in the same way other villages should also be included in the dialogue process. The CEO was hopeful that the authority and the farmers will be able to reach some consensus before August 12, 2011 the dead line set by the Allahabad High Court.

After the high court quashed the notification in Shahberi, the authority would start from zero and would initiate acquisition process after removing all the shortcomings what the high court observed during the trial of the case, he added.

Notably, acquisition of more than 3,000 hectares, spread across nearly a dozen villages, has been challenged by the petitioners. They have alleged that their land was acquired by the State Government by invoking the 'urgency clause', which had deprived them of an opportunity to raise objections as well as to bargain for a better compensation.

The fate of thousands of people, who have invested in housing projects in the Noida Extension area, as well as over a dozen real estate developers also hinges on the court verdict.

Meanwhile, Noida Chairman Balwinder Kumar continued his drive to pacify the farmers. He visited Sadarpur and other villages and promised to hand over five per cent of developed land and resolve abadi land issues.

The authorities briefed farmers about the new rehabilitation policy and benefits yesterday.

Acting swiftly after the Allahabad High Court gave Uttar Pradesh government and agitating farmers 17 days to try and negotiate an out-of-court settlement, Greater Noida Industrial Development Authority (GNIDA) on Wednesday initiated fresh negotiations with farmers and offered them cash incentive, annuity and other sops. In the meeting GNIDA briefed farmers about the new rehabilitation policy and benefits. Also, besides land compensation, under the new scheme, farmers will get annuity of Rs. 23,000 per acre for 33 years. GNIDA officials said that farmers could also collect one time payment if they desire. The rate would be Rs 2.76 lakh per acre.

Compromise?

A majority of farmers want to solve the matter out of court since construction work had already been going on at the land taken by the authority and they can no more be brought to use for farming purpose. Also, farmers are cautious in negotiating with builders directly. "There are many builders whose project is hanging in air and they have deputed their agents to get in touch with us. They are trying to persuade us to agree at the price offered by them. Builders have offered Rs 2000 to Rs 3000 per square metre as additional amount," said Ramender Singh, a farmer from Bisrakh village.

Money well spent!

Farmers in villages other than Shahberi have taken land compensation through mutual agreement which they had spent on marrying their children or buying luxury cars and building houses. "We don't have money to return back to the authority. If tomorrow, we are asked to, it won't be possible for us. We do not want to create hindrance in the development of the city. We too want development. But our main concern is that we should get a share in profit too," said another villager, Ramesh Bhati.

Meanwhile, Noida Chairman Balwinder Kumar continued visiting villages to pacify farmers. He visited Sadarpur and other villages and promised to hand over five per cent of developed land and resolve abadi land issues. It is only the Authority which can solve abadi land disputes, so the farmers want the negotiations to be held through the Authority instead of directly with the builders. Farmer leader Naresh Yadav claims that there are more than 800 claims of the 5 % plots pending since 2005 in his area alone. However, the authority had earlier claimed that it has fast-tracked the process of solving abadi land disputes with villagers.

'Plot' thickens

Acquisition of more than 3000 hectares of land, spread across nearly a dozen villages, has been challenged by the petitioners who have alleged that their land was acquired by the state government by invoking "urgency clause" which had deprived them of an opportunity to raise objections as well as to bargain for a better compensation. The fate of thousands of people, who have invested in housing projects in the Noida Extension area, as well as over a dozen real estate developers also hinges on the court verdict.

'Case study'

Nearly 50 villagers of Badalpur filed a writ petition in the Allahabad High Court on Wednesday challenging the notification for acquisition of their land by the Greater Noida Authority and the state government. Badalpur is the native village of UP chief minister Mayawati. The writ petition is likely to come up for hearing before a division bench of the high court on Friday. The petitioners have challenged the acquisition proceedings on the ground that the entire acquisition proceeding is a one-sided exercise of power by the authority and the UP government.

p>NEW DELHI:Noida Extension is abuzz again, but not with construction activity yet. After theAllahabad High Court gave an option tofarmers for an out-of-court settlement with theGreater Noida Authorty, farmers from various villages met on Wednesday to discuss the issue. Most farmers in the area want an additional compensation of Rs 700-850 per sq metre.

Farmers were given Rs 850 per sq metre when their land was acquired between 2008 and 2009. "We are also asking for our abadi land to be regularised immediately. If these demands are met, we will allow work to be continued," says Pradeep Yadav of Patwari village, who had 250 bighas of land in the village.

The Greater Noida Authority has started speaking with farmers in the area. Another farmer said the authority has offered to increase the compensation by Rs 500 per sq metre.

Greater Noida: The Allahabad High Court's directives on Tuesday gave some breather to the Greater Noida Development Authority (GNIDA) and the builders. It may come as a relief to the builders and the authority, who can try for out-of-court settlement with the farmers, but the situation has turned gruesome for those who have invested in the disputed region.

The investors' dreams are at the mercy of the authority and the farmers after the Allahabad High Court on Tuesday referred the petitions challenging the land acquisition in Noida and Greater Noida to a larger bench. The Court also gave an option to them to reach an out-of-court settlement by August 12.

With the HC respite for next few days now, the authority can take up the task to salvage Noida Extension.

Remarkably, besides Sahberi most of the villages have already obtained their compensations, hence leaving the option of either settlement with the authority or returning their reparations.

The farmers have also maintained that they do not want to become a hindrance in the development process. But, they are ready for a compromise only on the grounds of proper compensation and a solution on the population issue.

According to the farmer leader Dushyant Kumar, "Authority must not try to impose their self-will on us. We are ready for a compromise with the authority only if we are promised a share in the profits."

In addition Kumar asked for basic facilities in the villages like electricity' health' education and transport.

Gramin Panchat Morcha's Coordinator Ranvir Singh Pradhan also echoed the words of Dushyant Kumar by asking the authority to adopt a positive attitude towards the farmers.

NOIDA: While farmers on Tuesday greeted Allahabad high court's directive on holding talks with Greater Noida Authority as a vindication of their position on land acquisition, the Authority also heaved a sigh of relief as it now has more than two weeks to resolve the crisis and save both homebuyers and builders who together stand to lose thousands of crores if Noida Extension villages are denotified.

Talking to TOI, Greater Noida Authority CEO, Rama Raman, said the court's directions were welcome and it will immediately begin the process of talking to all villagers. "The direction has provided us a much needed respite. Actually, ever since the Shahberi order, many people who were not even actual stakeholders in the land crisis joined in the protest and created a lot of confusion," Raman said. "The Authority now wants to reassure the aggrieved villagers that we are on their side, and willing to sort out all their issues," he added. Raman said the Authority will go through the full court order and then begin one-on-one discussions with villagers to address their demands. The court's direction has also provided a breather to the developers who have 50-odd projects in the Greater Noida area. "Finally, we have received great news. The court directions will benefit all the involved parties. We are hopeful that the Authority will sort out the land row at the earliest," said RK Arora, CMD of Supertech.

"We respect the court's directions and hope that the Authority and the villagers reach a compromise this time," said Anil Sharma, CMD of Amrapali Group. The court's directions for resolving farmers' issues are also applicable to villages in Noida that have been agitating for better compensation and developed land.

Noida Authority chairperson Balwindar Kumar said the Authority had already announced its willingness to negotiate with Noida farmers. "I have been visiting the protesting villages in Noida, talking to villagers and addressing their demands, and we will begin distributing the developed plots very soon."

Appreciating the HC directions, Pankaj Bajaj, Delhi region vice-president of the developers' organization, CREDAI, said, "It is a positive intervention, as it provides a window for renegotiating and, thus, reaching a solution that protects the interest of all - buyers, builders and the state."

The Allahabad High Court has fixed August 17 as the next date of hearing on the petitions challenging acquisition of land in Noida and Greater Noida and has referred the matter to a larger Bench.

At the same time farmers of Noida extension villages in Gautam Buddha Nagar district and the State government (development authorities) have been given the option of re-negotiating and settling the compensation related issues till August 12.

A Division Bench of Justice Amitava Lala and Justice Ashok Srivastava, while referring the petitions to the Chief Justice and for the constitution of a larger bench, said that the farmers and the development authorities could settle the compensation related matter by August 12. About 250 petitions were filed by farmers of about 10 villages in Noida extension whose land had been acquired by the Noida and Greater Noida development authorities.

The petitioners challenged the acquisition of land by invoking the "urgency clause" of the Land Acquisition Act.

Earlier, Justice R.K. Agarwal and Justice Sunil Hali recused themselves from hearing a petition filed by the farmers of Deola village. The matter was referred to the Chief Justice by the judges.

About 100 hectares of land at Deola had been acquired by the development authority. The acquisition, by invoking the urgency clause, was challenged by the farmers whose land had been acquired.

The farmers of Noida and Greater Noida have been agitating for getting more compensation for the land acquired. In a bid to appease the farmers, the Chairman and Chief Executive Officer of Noida Balvinder Kumar on Monday reportedly agreed to allot 5 per cent of the developed plots from next week, and also to regularize the "abaadi" or populated areas. However, the final decision would be taken by the State government.

Chief Executive Officer of Greater Noida Authority Rama Raman on tussle over land acquisition in Noida Extension and the agency's plan for the future.

What are the measures the Authority is working on to give respite to the investors and farmers?

We are in talks with farmers and majority have accepted that the main demand is to get better compensation. We have been told that Uttar Pradesh has a strong land acquisition Act and compensation is better than other states. If we have given Rs 200 less than other states, we have compensated it with other benefits and perks - 7 per cent of developed land and payment of a certain amount till 33 years - so that farmers will have constant source of income.

In a few cases, the court has ruled in favour of farmers on issue of urgency clause. Did any official raise the issue that objections of the farmers should be heard at the time of acquisition?

I agree that (our) legal department should have been prepared for a situation where farmers challenged land acquisition. The court rulings have been on the ground that objections were not heard. Land has been acquired invoking the urgency (clause) and no objections were heard. It has been this way since the Authority and the Act were formed. I think no one could gauge the implications of not hearing the objections. Hearing of objections could take us almost 10 years to acquire land of a village.

NEW DELHI:DLF ChairmanKushal Pal Singh termed the ongoing farmer agitation overland acquisition a 'revolution' and said farmers whose land is acquired must be paid the potential value of their property and not merely the current market value. But the head of India's largest real estate company said he was not in favour of retrospective compensation as it would set a grave precedent for all land deals across the country.

Land acquisition for industrial and residential projects has become a controversial issue with farmers demanding higher compensation in Noida Extension, on the outskirts of Delhi, which they claim was acquired at throwaway prices under the pretext of urbanisation.

Last week, the Allahabad High Court directed that land inNoida Extension be returned to farmers, sending ripples across an industry hit by high home loan rates and low sales.

"I believe this agitation will eventually settle down. Two revolutions are happening today. One is a revolution related to transparency and the second is related to acquisition of land. Without land, how can you have development of roads, highways, townships, etc? But it must be done based on rationality. If the government is able to settle these issues in the new Bill (upcoming land acquisition Bill), then we will be a winner, otherwise we will continue with the problem," Singh said in an exclusive interview.

He blamed people living in cities who make laws for the poor without understanding their issues. "All policy framework since Independence has been done by urban people. There is no true representation from rural areas."

Singh urged the government to make rehabilitation integral to land acquisition in the new Bill and said instead of a one-time payment, an annuity-linked payment system stretching over a period of time should be devised.

"Land is an emotional issue for the farmer in India. You cannot deal with his reaction by giving him money. Pay the money, but pay the right money," he said, pointing out that in Haryana farmers receive annuity for 30 years.

Singh suggested that land acquisition should be left to private builders, and the government should intervene only to acquire those pockets where farmers are not willing to give up land.

NOIDA::Homebuyers in Noida Extension were dealt a double whammy on Tuesday. While their agony is going to get prolonged as hearing of petitions filed by villagers in the Allahabad high court has been deferred, they may soon have to shell out additional interest rates on home loans.

"With the increase in repo and reverse repo rates by 50 basis points each by the Reserve Bank of India (RBI), there is bound to be an increase in interest rates on all kinds of loans. Home loans are always affected as most of them are given out on floating rates of interest," said chief economist of CRISIL, D K Joshi. "It depends, however, on individual banks as to when and by how much they increase these interest rates," he added.

Homebuyers, most of them being from the service class, are now afraid that their monthly salaries would shrink before it reaches their pockets because EMIs on loans are deducted from source. This would put them in a tight situation.

"According to the construction-linked plan, under which I pay amounts in installments to the builder, I am paying an interest of Rs 11,500 every month as pre-EMI," said Kumar Rohit, a security consultant who has taken a loan of Rs 18.5 lakhs for his 3 BHK flat in Supertech Ecovillage-I. "As salaried people, our resources are limited and it is difficult for us to cut down expenses for paying the bank," he added. His friends have decided to write to the RBI to consider stopping EMIs till all issues are resolved.

Devender Kumar, a systems consultant, pays a pre-EMI of Rs 5,000 every month for his home-loan of Rs 20 lakh. "Just look at my plight. My house rent is set to increase in a few months from now. If I have to pay higher EMIs on top of that, there is no guarantee that I would get my house," said Kumar, who has booked a 3 BHK flat in Panchsheel Greens-I.

Those with fixed rates of interest are also apprehensive and say they may soon have to pay additional interest amounts. "I had taken a home loan under a fixed rate of interest for three years," said Rajiv Dixit, a Delhi-based engineer who has booked a 2 BHK flat with Panchsheel Greens-I. "The bank may increase the interest rates once the three-year period expires at the beginning of the next financial year," he added.

Some buyers who have exhausted all their savings after booking their house are agonized over the long wait and uncertainty prevailing over it. "I invested all my retirement benefits into this house. The wait has been long and painful. We do not know where we will go from here because no solution is in sight," said A K Malhotra, a retired bank official, who has booked a 3 BHK flat in Supertech Ecovillage-II.

"At the moment, me and my family are praying that we somehow get the house on time," added Malhotra.

"I am pushing 50. Learning from the experiences of my life, I fear that I may neither get my house nor my investments back," said Manoj Kumar Gupta, an employee in a private company. Gupta, who has booked a 1 BHK flat in Supertech Ecovillage-I, adds, "I stay with my family in Noida in a relative's house and he has let it out to us at a rent cheaper than market rates. Things are getting embarrassing for me as I will have to continue taking his favour," added Gupta.

With another round of hikes in the interest rates on home loans, property prices are likely to spiral further. The most affected will be the NCR area, which is going through a period of crisis in the housing sector, thanks to the recent court orders pertaining to land acquisition in Greater Noida.

This is the 11th successive hike in the past one and a half years, almost doubling the EMI of borrowers in two years. This will make cost of funds expensive for both developers and buyers, who are anyway caught in a limbo as of now.

While a real estate developer will be left with no choice but to pass it on to the buyers, resulting in an increase in property prices and almost doubling of the existing price of a home in NCR area in the wake of ongoing Noida Extension crisis.

While prospective buyers may still have a chance to plan a home according to their budgets, existing home loan seekers feel cheated as they have been paying more and more for the same value of property - with an adverse effect on their financial health.

RK Srivastva, a resident of Indirapuram who bought a flat last year, said, "A Rs 25 lakh property that I purchased on 20 years' EMI supported home loan would have cost me Rs 40 lakh. But EMI made it possible for me to own a home in Delhi. But now, when I sit to calculate, I am told by my bank that I will end up paying another Rs 5-6 lakh assuming more increase in interest rates."

"This means the total cost will be about Rs 50 lakh. The thought of this makes me believe I am a foolish or a tool in the hands of the Government to guard their interest. Truly, we are the cattle-class and the Government conspires we remain the same forever," he added.

"As if the last month's hike was not enough, the government is here again rubbing salt on wounds," said Rajesh Khare, a resident of Sushant Lok in Gurgaon.

He had purchased a flat three years ago on an EMI costing Rs 6,700 and now paying Rs 12,000 and expects to add another Rs 2,000 following the overnight hike.

"Buying a home facilitated by home loans makes it possible for professionals like us, but even this market seems to be like a essential commodity market or a vegetable market. Milk, vegetables, fuel prices and now homes can go up anytime and we should be prepared for it. We are paying the cost of owning a home. I can imagine the situation of those buyers or investors who booked a flat in Noida Extension but will never get a home and end up paying higher monthly installments," he added.

The material costs have already gone up by over 35 per cent and wages too have doubled over the past three years any increase in the rate of interest will deter people from busying a home.

"While the anti-inflationary approach of RBI is understandable, making housing finance costlier shall shatter dreams of many first time home buyers particularly in the low and middle income categories. In fact there is a case for lower interest rate because housing is a necessity for the masses and there is a shortage of over 26 million units in the country," said Brigadier RR Singh (retd), who is director general of the National Real Estate Development Council (NAREDCO).

NAREDCO is an apex national self regulatory body for promoting the cause of real estate sector, functioning under the patronage of Ministry of Housing and Urban Poverty Alleviation, Government of India.
Singh further suggested that RBI should introduce a new separate category of low and middle income housing mortgages in order to augment housing finance. "Influencing shortage of housing is expected to increase prices again as RBI policy to curtail supply will not be appreciated by market forces. With lesser construction activity owing to reduced lending & higher cost of funds by banks, adverse impact on new housing is imminent. High interest rates besides hurting home buyers shall also affect the finances of developers as rising borrowing cost, shrinking access to credit and declining demand shall increase the inventory and debt," Singh told The Pioneer.

The Confederation of Real Estate Developers' Association of India too said the RBI's decision to hike key policy rates will hurt both home buyers and developers badly, as the cost of borrowing will go up, leading to an increase in housing prices. However its is believed that the impact on housing demand would not be impacted much, as prospective home buyers would purchase flats of lesser value than what they earlier had planned. The housing shortage is estimated to rise to 37 million in the 12th Five-Year Plan from the current 24.6 million and the country would need USD 3.2 trillion to meet this shortfall.

NOIDA: Faced with the prospect of agitating farmers derailing housing projects across Noida, Noida Extension and Greater Noida in Gautam Budh Nagar district, the UP government on Tuesday decided to accept their demand for regularization of inhabited areas in villages.

To this end, the government has formed a committee headed by the district magistrate and invested with special powers to settle regularization issues. In the normal course, the state Cabinet decides whether to regularize village habitations, on the recommendations of the district administration.

Regarding the composition of the empowered committee, district magistrate Hridyesh Kumar said, "The SSP of Gautam Budh Nagar, and Noida Authority representatives are also members."

The committee, which has set Wednesday and Thursday for discussing the regularization question in Noida and Greater Noida villages, respectively, will target the nerve centres of the Noida farmers' agitation on the first day. Noida Authority chief Balwinder Kumar told TOI that the committee would visit Sorkha, Shahdara and Parthala Khanjarpur villages that have been most vocal about their demands, on Wednesday.

However, speaking to the media just hours after Allahabad High Court ordered Greater Noida Authority and the farmers to chalk out a solution to the Noida Extension housing crisis before August 12, Kumar indicated that it might not be possible to fulfill the farmers' demand for higher compensation.

"There is no possibility of increase in compensation for land which has already been taken. If the Authority hikes compensation for one village, the others too will demand more. There will be no acceptable cut-off date for such a hike. This is practically not possible," Kumar said. He, however, added, "If the state government hikes compensation retrospectively, we will implement the order".

The Noida Authority chairman said regularization of populated areas in villages is a genuine demand and should have been addressed years ago. "There is no lacuna in the land acquisition policy, but it was not properly implemented. We have come to know that, in 1952, some villages covered 10 acres, but with the passage of time and increase in population the habitation grew to cover 1,250 acres. At the time of acquisition, though, the 1952 statistics were taken into account. With the intention to provide relief to homebuyers in Noida, we are doing our best to address the farmers' issues," Kumar told.

Senior officials of the Authority visited four Noida villages on Tuesday as well and promised to withdraw all encroachment cases against the villagers. On their tour of Shahdara, Shahpur, Sultanpur and Nagla Wazidpur villages on Tuesday, Noida Authority chairman Balwinder Kumar also assured villagers that their demand for 5% developed land would be fulfilled.

The villagers expressed mixed views on the Authority's assurances. "So far, we are satisfied with the Noida Authority's stand but the confusion will persist until our demands are not met," said Naresh Upadhyay, headman of Sultanpur village.

Farmers on their part again held a panchayat on Tuesday morning. Meeting under the banner of Kisan Sangharsh Samiti in Asgarpur village, the representatives of villages such as Raipur, Shahpur, Rohillapur and Gari threatened to blockade the Noida-Greater Noida Expressway if their demands are not met by July 31.

Senior Authority officials visited four Noida villages on Tuesday and promised to withdraw all encroachment cases against the villagers. Authority chairman Balwinder Kumar also assured villagers that their demand for 5% developed land would be fulfilled.

Lucknow :While referring the Noida extension land acquisition issue to a larger bench, the Allahabad High Court Tuesday gave the Uttar Pradesh government and the agitating farmers 17 days to try and negotiate an out-of-court settlement.
The court order came over about 250 petitions that were clubbed as they involved hundreds of farmers spread across 10 villages where some 3,000 hectares of land was acquired by the Greater Noida Industrial Development Authority.
The petitioners accused the authority and the state government of arbitrarily bypassing the prescribed procedure for acquisition by unlawfully using an 'urgency' clause, when the land in question was actually given away to builders and developers to build swanky residential complexes.
The division bench comprising Justice Amitabh Lala and Justice Ashok Srivastava said that the farmers and the administration were free to hold fresh negotiations and strike a deal, if possible, latest by Aug 12.
An application moved jointly by a number of builders and developers, who wanted to be heard in the case, was turned down by the court.

RBI Governor D Subbarao today said higher-than-expected rate hike of 50 basis points could have an adverse impact on the asset quality of banks but asserted that it would not pose any systemic risk as of now.
Quoting bankers, who met him after the credit policy this morning, the Reserve Bank Governor said at post-policy press conference, "They [bankers] told us that the NPA [situation] can come under stress especially in some interest-rate sensitive sectors."
However, he was quick to add that the deterioration is not systemic. "It is our understanding that there would be no systemic risks," the governor asserted.
With today's hike, the 11th since March 2010, the central bank has increased its key rates by a cumulative 3.25 percentage points in its effort to tame the uncomfortably high headline inflation which stood at 9.44% in June.
The rising interest rates and increasing commodity prices which affect input costs, coupled with a general sense of a slowdown in economic growth are widely believed to hurt businesses.
The bankers told the monetary authority that the rising interest rate regime would increase the risk of bad loans in the system.
The nation's largest lender State Bank of India Chairman Pratip Chaudhuri concurred saying, "there are signs of pressure on asset quality."
All the bankers have told RBI that the policy rate hike transmission will be "rapid", the Governor said. It means that the rate hikes will start pinching borrowers sooner than they have so far.
Public sector banks like Bank of India and Union Bank of India have reported a fall in profit for the first quarter on higher NPAs. The country's largest lender State Bank of India had seen a 99% erosion in net profit for Q4 of FY11 to a little over Rs 20 crore due to bad assets and higher pension provisioning.
Bank of Baroda CMD MD Mallya, who also heads the industry body Indian Banks Association, said rate-sensitive sectors like real estate, infrastructure and auto can see some impact following today's 50 bps hike.
Union Bank CMD MV Nair too said those companies which are leveraged and have high debt on its books, and small and medium enterprises may report some stress going ahead.
The SBI chairman said education loans can also see some stress building up, while HDFC Bank MD Aditya Puri echoed Subbarao's reaction, asking the media not to blow up the issue as it is not a systemic risk.
As a solution, many of the companies are already looking towards external borrowings, Chaudhuri said, adding that such clients typically ask SBI for a guarantee while tapping the cheap money from the developed world, where propelled by economic stimulus, lending rates are at an all time low.
RBI Governor said, "Those corporates who can access external borrowings will do so. But we should also recognise that there are limits on how much ECB [external commercial borrowings] will come in, restrictions on end-use of ECB, interest rate caps...So those restrictions will ensure we will not have a flood of ECBs."
On the crisis in the realty sector in the National Capital Region, following the court rulings to stop the ongoing property development in the Greater Noida/Nodia Extension area, Subbarao said he has not received any representation from any bank so far.