Noida Extn builders promise refund with interest

2011-07-27 13:37:22

Almost all builders, whose projects have got affected because of the Supreme Court judgment cancelling land acquisition at Sahberi village in Greater Noida, have said buyers wanting their money back would be refunded the entire amount with interest. The builders have also offered to shift these buyers to other projects being launched by them in the area, if they so desire.

Anil Sharma, CMD of Amrapali Buildtech, said his company had in fact started returning money to customers seeking a refund. He, however, said that over 90% of its customers wanted to shift their apartments to the groups other projects not affected by the Sahberi judgment.

Sharma said his company had decided to pay interest at the rate at which buyers had borrowed from banks. If they had paid from their savings, he said, the company would give interest at 12% per annum. Amrapali was the builder behind Smart Home, one of the biggest projects hit by the Sahberi verdict. The group is constructing around half a dozen projects in the area commonly known as Noida Extension.

Another group, Supertech, whose project Eco Village II was in Sahberi, has made a similar offer to its clients. Group CMD R K Arora said, We have offered to return the money with interest. At the same time, the company is offering to shift its buyers to Eco Village I or Eco Village III.

Mahagun, another prominent builder affected by the verdict, has also offeredto return the entire amount paid by customers who do not want to shift to other projects in the area. A part of the companys villa project, Myra, falls in the Sahberi. Mahagun CMD Dhiraj Jain said builders in the area will ensure that their customers do not lose money because of the judgment. He said developers were not responsible for the fiasco.

Gulshan Nagpal, CMD of Gulshan Homz, has also offered to return money with appropriate interest to clients who booked flats that fall on Sahberi land.

The builders clarified that the refund offer was open only to buyers whose projects were in Sahberi village, where the Noida authority had allotted land to builders without completing the acquisition process. Customers seeking refund in projects outside the village will have to follow the normal procedure in which a part of the money is deducted and no interest is paid, they said.

Another builder, Panchasheel, a part of whose project was in Sahberi, also said it will refund the entire amount paid by clients whose apartments face cancellation because of the judgment. Panchasheel CMD Ashok Choudhary said most buyers have expressed the desire to shift their apartments to group projects unaffected by the order as the prices in the area are very attractive.

Despite the fact that the affected builders are not at fault, they have decided to bear the losses and return the full money at appropriate interest rates to customers, said Manoj Gaur, MD Gaursons and spokesperson of the Confederation of Real Estate Developers Association of India (CREDAI) for western UP region.

However, Gaur said they are yet to get a clear instruction from the Greater Noida authority on which portions of land come under Sahberi village. He said it will take at least two weeks to determine that. After that, developers will send formal letters to buyers giving them the option to seek refund or shifttoother group projects in the area. For those wanting their money back, the refund will include interest for the complete period, he added.

Real Estate Noida
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