The global economic recession and the current real estate crisis has affected this satellite town neighbouring the national Capital, as various building projects are in jeopardy.
Builders having a stake of over Rs 1,000 crore in various Noida projects have demanded the Noida Authority to reschedule their interest installments.
According to builders, delay in the execution of projects is mainly due to economic recession and delay in the issuance of allotment letters. Besides the Noida Authority is not handing over the plots to them. Another reason given by builders is that the Noida Authority has not provided them with facilities like water and roads at the project sites.
In one village, builders have paid Rs 8 crore to farmers for getting possession of the plots.
It may be recalled that during Mulayam Singh Yadav’s tenure in October 2006, the Noida Authority had allotted plots to four leading builders in Sector-119. But they were given possession of plots 17 months later in January 2008. The builders had not only to struggle for the possession of lands with the Noida Authority and the farmers, but also had to shell out Rs 8 crore for the affected farmers.
They allege that the authority had allotted these plots to them without paying compensation to farmers.
Farmers have filed a case against the Noida Authority pertaining to their land. The Authority may have to pay a hefty compensation to farmers.
Interestingly, the Noida Authority had allotted seven plots to builders in Sectors-111 to 118 in January 2007. The builders had received the allotment letters in March 2007. But by then the election dates were announced in the state and all government action was suspended.
A probe was carried out till November-December 2007 and the state government took some time more to take a decision on the issue after which registries of plots were executed and their possessions given to the builders.
But many plots are yet to be acquired and the sites that are clear don’t have proper roads thus, hindering work.
According to the Noida Authority sources, one of the builders has stopped paying installments after depositing a mere 10%. He says that he has not been provided with the needed facilities. Besides, there are some builders who could not go in for the registry because they have not been given allotment letters.