The verdict is out - Land at Shah Beri, Patwari & Dewla Villages acquired by the GNIDA will now be returned to the farmers as the Supreme Court & the Allahabad High Court as declared the land acquisition as ill-legal. Celebrations are on through the country & the verdict is taken as the victory of the farmers over the industrialists / U.P government. Piles of new cases relating to land acquisition in the Greater Noida area are in various courts of India. Farmers are waking up to realize their rights & to fight for them. Its a renascence in terms to Human Right, Farmers Right has now begun.
Well this is something we all know & its just not what I'll waste an article on. The win-win picture is viewed by all, the reality is quite a bit different.
Almost 159 +589 Hectares to land has to be given back to the farmers. Most of this land has been dug 15-25 Feet deep. There is construction remains all over the area. The land is nowhere close to being cultivable & with our well known Government machinery, it shall take 5years if not more in order to get that farm in some kind of cultivable state. As a result, the land is of no use to the farmers until they actually wish to build multistory towers on it. Well practically even that isn't possible as the Honorable courts of India have made it clear that this Farm land cannot be used for residential purposes. So that barren land is nothing more than precious waste to our dear farmers.
Side two to the story also tells us about people who had invested money in the projects to be developed on this land in the Hope to get a dwelling unit for themselves. Almost 1lack people have invested nearly 200 Crores in the area. Their story is of shear bad luck & injustice because the one political parts & the honorable courts of India now have a Pro-Farmer justice. In the wake of realizing the pain of the farmers, their pain is a forgotten stance.
The Supreme Court has directed the builders who were supposed to be building projects on this land to return all the money with Bank Rate of Interest (Which is 4%) to the investors. Now that I am an engineer, let’s go into the complete details of this interest rate returns. Most of these investors have taken a loan to pay up for these properties. The rate of interest of these loans is however close to 10-14% per anum leaving the investors with a simple loss of 6-10%. Also, since most of these investors are end users who actually wanted apartments to safety in, there is a loss op opportunity for them. Basically, the property price in the region has gone up by almost 30-50% in the region. So now the dream house is just a bit out of reach. People even the inflation is in double digit now. Well this win-win situation is now speaking of some losses.
Lets look further.
Well this is something we all know & its just not what I'll waste an article on. The win-win picture is viewed by all, the reality is quite a bit different.
Almost 159 +589 Hectares to land has to be given back to the farmers. Most of this land has been dug 15-25 Feet deep. There is construction remains all over the area. The land is nowhere close to being cultivable & with our well known Government machinery, it shall take 5years if not more in order to get that farm in some kind of cultivable state. As a result, the land is of no use to the farmers until they actually wish to build multistory towers on it. Well practically even that isn't possible as the Honorable courts of India have made it clear that this Farm land cannot be used for residential purposes. So that barren land is nothing more than precious waste to our dear farmers.
Side two to the story also tells us about people who had invested money in the projects to be developed on this land in the Hope to get a dwelling unit for themselves. Almost 1lack people have invested nearly 200 Crores in the area. Their story is of shear bad luck & injustice because the one political parts & the honorable courts of India now have a Pro-Farmer justice. In the wake of realizing the pain of the farmers, their pain is a forgotten stance.
The Supreme Court has directed the builders who were supposed to be building projects on this land to return all the money with Bank Rate of Interest (Which is 4%) to the investors. Now that I am an engineer, let’s go into the complete details of this interest rate returns. Most of these investors have taken a loan to pay up for these properties. The rate of interest of these loans is however close to 10-14% per anum leaving the investors with a simple loss of 6-10%. Also, since most of these investors are end users who actually wanted apartments to safety in, there is a loss op opportunity for them. Basically, the property price in the region has gone up by almost 30-50% in the region. So now the dream house is just a bit out of reach. People even the inflation is in double digit now. Well this win-win situation is now speaking of some losses.
Lets look further.
Noida extention is an important link between Noida & Greater Noida. With Noida Extension remaining undeveloped & farm land, there is a definite security issues in that area. Development will stall in the entire area including Greater Noida due to the missing linkage of Noida Extention. This is likely gonna act as deterrent for price increase for the Greater Noida area. Also, it poses a security threat to the Greater Noida residents who have to cross over to Noida & Delhi on a daily basis. The picture again doesn't seem quite a win-win for the Greater Noida residents as well.
Also, Delhi as a metropolitan has two basic extensions in the NCR. The Noida, Noida Extention & Greater Noida side in one direction & the Gurgaon, New Gurgaon, Mansear side. With an almost collapse on one side with fear & negative investor sentiments, the other side is likely to experience heavy price rise as demand shall increase at a tremendous pace. This again makes the "Dream Home" for the end user a little more dearer. Not the best of pictures we would like to point. Is this a win-win situation?
Coming to the Real Estate Companies now, these losses of projects & waste of money already spent in construction costs act as a deterrent in the investor interests of these companies. This makes a negative investor sentiment on the equity markets which is a loss for millions of Shareholders who have invested in the reality stocks in the capital markets. Also, the global sentiments towards India get shaken up. That acts as huge deterrent for the foreign direct investment in to the country. A huge loss for all in the capital markets.
Again, doesn't seam to be a win-win situation yet again.
IS THIS JUSTICE? IS THIS A WIN-WIN FOR ALL PICTURE THAT WE PAINTED.
OR
IS THIS A PRO-FARMER JUSTICE TO WHICH WE HAVE DECIDED TO CLOSE OUR EYES.
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