Builders seek bailout package from GNIDA | india | Hindustan Times
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Builders seek bailout package from GNIDA

india Updated: Jul 15, 2011 00:29 IST
Darpan Singh
Darpan Singh
Hindustan Times
Highlight Story

After farmers and buyers, it’s now turn of builders to turn the heat on the Greater Noida Authority. Real estate players — who had planned residential towers in Shahberi — have said they had suffered a loss of Rs 500 to Rs 600 crore because of the Supreme Court judgment quashing the land acquisition in the village. They have sought allotment of fresh land and compensation from the authority.

Builders said they were pushing hard to recover their losses. “We were authenticated buyers. We were not aware that the land in Shahberi was disputed,” said CREDAI vice president (NCR) Anil Sharma. Is the authority responsible for the current crisis? Sharma said, “The court has fixed the responsibility. If the mess continues, there will not be any development, not only in Greater Noida but also anywhere in the country.

“Buyers have greater trust while dealing with the government. The cancellation of land sale is not a good sign,” said another member of CREDAI. Builders will collectively lose Rs 82 crore by way of stamp duty they had paid while purchasing plots from the authority. Builders had also paid commission to property agents who brought in customers. Builders also spent a lot of money on construction and advertisement too.

Amrapali Buildetch will have to return 40 acres of land to farmers. About 4,000 buyers in its “Smart City” township have been affected because of the court order. Its CMD Anil Sharma said, “I spent more than Rs 20 crore on land purchase and Rs 5-7 crore for machinery mobilisation.” Supertech MD RK Arora said, “We are talking to the authority about our losses. We will soon decide on an alternative site and recovery of our losses.