Noida builders to meet authorities to break impass

Banks and finance companies may resume lending for housing projects in Noida Extension if they get a clearance from the Greater Noida authorities, builders told reporters today.

Builders were in discussions with lenders to resume disbursement of loans for their projects in Noida Extension and have sought a meeting with Greater Noida authorities next week to break the deadlock.

Banks like State Bank of India had suspended lending for projects in Noida Extension, after the Supreme Court upheld an Allahabad High Court order cancelling land acquisition in Greater Noida’s Sabheri village and directed the authorities to return land to farmers.

Supertech Chairman RK Arora said banks were ready to disburse loans if the Greater Noida authority could give them an assurance that the land acquisition was in order. The builders had a meeting with HDFC's Managing Director Renu Karnad and the banks have sought a meeting with the authority later this week or next week.

The court judgment has marred consumer sentiment in the area and sales have come to a standstill. Existing investors are also nervous about their investments with farmers from several villages moving court to seek higher compensation.

Nearly 250,000 apartments in the area were being built at a cost of Rs 37,500 crore. Builders had sold around 100,000 units and 50 per cent of construction work have been completed.

Refund Money with Interest
Developers whose projects at Greater Noida have been thrown into a limbo by the apex court ruling on Sahberi assured investors today that their money would be returned with interest, as directed by SC.

“We will shift the buyer to another location of their choice 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,” said Amrapali CMD Anil Sharma.