G Noida buyers to get back all their money: Builders

Claiming a Rs 500-600 crore (Rs 5-6 billion) loss due to 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.

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"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 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 alternate 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.

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

Asked whether home buyers were being refused loans for other projects in the area also, Supertech chairman 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 250,000 houses are being built there, including about 6,000 units affected by the SC ruling.

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Out of this, about 100,000 units have already been sold by various builders.

He said the builders had a meeting with leading home loan provider HDFC's managing director Renu Karnad and the banks were seeking a meeting with the authority.

The meeting between the banks and the authority was expected to be held later this week or early next week, Arora added.

Amrapali's Sharma said that CREDAI would also soon set up a legal cell, which apart from resolving the refund issue, would also conduct due diligence before participating in any land auction in future.

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The builders said they were pushing hard to recover their losses from the authority.

The estimated loss figure of Rs 500-600 crore includes payments toward land acquisition, duties and taxes, construction activities, marketing, labour costs, etc.

Supertech managing director R K Arora said, "We are collectively talking to the authority about our loss incurred due to Supreme Court ruling quashing the land acquisition. Where authority will allot alternate site and how our loss could be recovered is being discussed with officials."