Click to play videoGreater Noida: The Allahabad High Court on Friday ordered Mayawati government to return to farmers land acquired in three villages of Gautam Buddh Nagar district and pay 64 per cent higher compensation to similarly affected farmers of other villages.
This means that flats that were being pre-sold in the villages of Asdullapur, Yusufpur Chak Shaberi and Devla by commercial developers may not be built.
It's not just another blow for home buyers, the order also affects builders, the Greater Noida Authority and farmers.
For home buyers, the fear is that builders might enforce a clause in their agreement that says buyers will have to bear the additional burden in land procurement. What that means is that their dream house on loan could get much more expensive - as much as Rs 6-8 lakh more for a 3-BHK flat.
"We may have to pay extra money. To an extent it is fine but what if we have to pay a heavy amount," said Mohan Dongre, a home buyer.
But some builders, for their part, have promised that they won't pass on the additional expense on to home buyers
"We have made a decision that old buyers, who have already invested their money and booked their apartments, shouldn't be asked to participate in any of the cost increases," said CREDAI President Pankaj Bajaj.
Farmers who sold their land now have the right to return the money and claim their land back. While this isn't exactly what they wanted, they view the judgement as a ray of hope
"The court has given us a way forward and we thank them for that, but we are also sad," said a farmer of Basrakh village in UP.
The burden of extra compensation falls mostly on the Greater Noida Development Authority. But it plans to recover at least part of it by passing it on to the builders.
It might however take weeks for clarity to emerge on who will be affected, and to what extent.
While the verdict brings some relief for the home buyers, their troubles haven't ended yet. With most farmers still wanting to reclaim their land, it seems the builders will have to be ready for more court cases in the months to come, which simply means that the home buyer is not on safe grounds just yet.
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