Builders in Noida Extension have begun depositing money with the Greater Noida authority. As per Allahabad High Court orders, the amount will be distributed among farmers as increased compensation.
“Builders have deposited Rs 100 crore. The amount will go up to R300 crore in the coming two days,” said an authority official. “To begin with, we intend to generate R300 crore from builders,” he said. The authority has allotted land to about 50 builders in Noida Extension to raise residential towers. They had to deposit their first instalment in June next, but the authority told them to part with 5% of the total allotment price before November 10.
The authority will be paying R3,500 crore as additional cash and allotting land worth R600 crore to farmers in Noida Extension and elsewhere in Greater Noida. Since the developed land is scarce, the authority will have to give money in lieu of land at several places.
Since the authority has taken bank loans worth R3,500 crore to acquire and develop land in Noida Extension and no sale of fresh land is taking place due to the farmers’ agitation, it has run short of money.
“We’re mulling taking fresh loans. We may ask the state government to bail us out with
R1,000 crore. We’re already seeking R500 crore from the Noida authority. We’re also bracing to take fresh bank loans worth R2,500 crore,” the official said. The authority will also send notices to allottees who owe it about R200 crore.
The authority has begun allotting developed land plots to farmers as ordered by the court.
If all farmers accept the increased compensation and no major group moves the Supreme Court, challenging the high court order to seek their land back, the stalled housing projects in Noida Extension, where 2.5 lakh houses have been planned and 1 lakh units booked, will be safe.
For now, all construction activities have been halted till the NCR Planning Board approves of changes to the master plan.