Greater Noida buyers will get loan interest costs: Builders

Claiming a Rs 500- to 600-crore loss following the Supreme Court order quashing land acquisition for some projects in Noida Extension, builders on Thursday said home buyers would get back all their money, including costs incurred as home loan interest payments.

At a press conference organised by real estate developers' body, CREDAI, the builders of the affected projects at Noida Extension, which is a part of Greater Noida, said they were sitting on a loss of about Rs 500-600 crore due to last week's court order that cancelled land acquisition from farmers.

They, however, maintained that the home buyers at their projects would not suffer and they are being given the option to either shift to some other project or take a refund of the amount paid by them, including the payment toward interest on home loans.

“We will shift the buyer or refund the money with interest equivalent to the interest paid by customers on home loan... We will at least protect the home loan interest payments,” Amrapali Developers CMD, Mr Anil Sharma, said.

Around 500 applications for refund have been received by the developers so far. However, the majority of the buyers want flats at an alternative site, but at the old rate of allotment. Several such buyers have been shifted to alternate sites available with the developers.

Amrapali and Supertech Developers are among the leading builders whose projects have been affected due to the SC order.

“We are estimating a loss of Rs 500-600 crore because of the SC judgement,” Mr Sharma said.

Asked whether home buyers were being refused loans for other projects in the area also, Supertech Chairman, Mr R.K. Arora, said the banks were ready to disburse loans if the Greater Noida authority can give them an assurance that the land acquisition was in order.

The Noida Extension area is spread over 4,000 acres and an estimated 2.5 lakh houses are being built there, including about 6,000 units affected by the SC ruling. Out of this, about one lakh units have already been sold by various builders.

“A total 6,000 apartments are affected under the Shahberi project, including 700 apartments of Supertech, 150 of Panchsheel and 300 of Gulshan,” said Mr Arora.

Mr Sharma said the country's land acquisition act dates back to 1894 and the builders can not develop any infrastructure, including houses, roads and schools, with such systems and policies in place.

Welcoming the government's attempts to bring in a new law, he said the Act should be amended immediately.

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