Have you been impacted by the recent Supreme Court order? Here are some options before you..!!
A 300 sq ft a shok Kumar Saraswat 32 years, is an IT manager with a company in Noida. He bought a 1300 sq ft apartment in Amrapali's Smart City project in Noida Extension last year, paying R1845 per sq ft.
Following the Allahabad High Court judgment last month that quashed the acquisition of 156 hectares of land in Greater Noida where Noida Extension is being developed, the builder gave him the option of shifting to an alternative site located 2 km away called Dream Valley or withdrawing his money. He agreed to the latter option as he had a budget constraint and projects in other areas were expensive. He has now signed up a new agreement with the developer who has given him a similar flat with an increased area of 1360 sq ft as compensation. The possession will be handed to him after one year. Till date, he has paid 10% as booking amount to the builder who has not charged him anything extra for the transfer to the other project.
Ravi Kant Pandey, who has booked a flat in a project in the Noida Extension area, says he wants his money back. However, he stands to lose about R2 lakh. “If I cancel my booking, 10% of the booking amount will be deducted,“ Pandey says.
Homebuyers and investors are a worried lot after the Supreme Court upheld the Allahabad High Court judgment quashing the acquisition of 156 hectares of land in the Noida Extension area.
Though developers who bought the land for housing projects are putting up a brave face in the wake of the apex court's decision and have given the buyers an exit as well as transfer option to an alternative site, thousands of people who have booked apartments with them are likely to be impacted.
There are apprehensions too over the 33 other villages that have moved court agains land acquisition. These cases could go the Shahberi way.
However, real estate experts point out that the urgency clause can only be applied in case of Shahberi and that farmers in other villages have only taken compensation.
So, what are the options that buyers have before them? Can they exit from the project and get a refund? They have two broad options before them. Firstly, they can seek a refund on the money paid to the developer.
However, this may not necessarily be a speedy option given that developers have themselves suffered financial losses. Buyers can also choose an alternative allotment in the other projects of the developer, if it's offered to them. However, before doing so, they should check whether the specifications of the property offered are satisfactory.
Lawyer Sunil Tyagi points out that the buyer can ask for a refund but it could take some time to come through.
Also, if the developer is offering an alternative site, buyers should check whether all specifications of the alternative site meet their requirements, in terms of the location and amenities available.
In case the buyer has taken a bank loan and has now decided to opt for a transfer, he will have to take a fresh loan as loans are disbursed for specific properties and are not interchangeable.
Will buyers affected by the court order, especially those who have decided to withdraw their money, consider options in other parts of NCR, such as Ghaziabad or Faridabad?
Many experts feel that buyers of houses in Noida Extension are unlikely to increase their budget to buy apartments along the Noida Expressway or Indirapuram as prices there are slightly on the higher side. They may consider options in Faridabad or in areas such as Crossings Republik in Ghaziabad as prices there are comparable.
Anckur Srivasttava of GenReal Advisors says that Faridabad Neharpar and Ghaziabad areas offer a similar price band, R2000-3000.
