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This is an archive article published on July 7, 2011

Acquisition quashed,SC orders builders to return Gr Noida land to farmers

The court fined the Greater Noida Industrial Development Authority (GNIDA) Rs 10 lakh.

The Supreme Court today upheld a High Court order quashing the acquisition of 156 hectares of land in Shah Beri village,dealing a blow to the government of Chief Minister Mayawati,and putting in doubt the future of massive real estate development across a swathe of Greater Noida.

The court took exception to the fact that the “land was allotted to prime real estate companies and builders in complete violation of the purpose for which it was acquired by the (Greater Noida) authority”.

Refusing to interfere with the “detailed and reasoned” judgment passed by a division bench of the Allahabad High Court on May 31,the bench of Justices G S Singhvi and A K Ganguly reiterated “the state government could not have invoked ‘urgency’ clause… entire process was a colourable exercise of power.”

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The court fined the Greater Noida Industrial Development Authority (GNIDA) Rs 10 lakh,to be deposited within three months,and ordered the builders to return the land to farmers.

It objected strongly to the fact that GNIDA had gone ahead with allotting the land to the builders even before the government had approved the change of land use from industrial to residential.

The Supreme Court decision came on a clutch of appeals filed by GNIDA and real estate developers after the Allahabad High Court quashed the notification for land acquisition. Among the major builders affected by the order are Amrapali,Supertech,Ajnara and Mahagun.

The apex builders’ body,Confederation of Real Estate Developers’ Associations of India (CREDAI),said that some 6,000 home buyers had been hit by the court order,who would get refunds or homes elsewhere.

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“The Supreme Court’s decision has affected the projects of 6-7 builders… About 6,000 buyers have been affected,but developers have taken steps to compensate buyers by shifting them to some other projects or refunding money,” PTI quoted Manoj Gaur,president of CREDAI’s Western UP chapter,as saying.

Amrapali,the biggest firm to be affected,said it has already shifted around 3,000 buyers to other properties it is developing at no extra cost. Supertech,the second largest,described the court verdict as the “victory of people who want to develop slums and unauthorised colonies”,PTI reported.

The National Real Estate Development Council (NAREDCO),an autonomous realty body under the aegis of the Ministry of Housing and Urban Poverty Alleviation,said the order would “adversely impact developers resulting into substantial losses besides affecting general sentiment of the housing market as a whole”.

The court today expressed annoyance over GNIDA “speaking on behalf of the builders”.

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“We know how you operate,” the Bench said. “Everything has been meticulously planned. Your officers know that the land has to be handed over to the builders and that this is a facade.

“About 60 per cent of the land was handed over to seven builders… without understanding the psyche of the farmers. Land is a source of sustenance for them.”

Private interest,the court said,had been made out to be public interest. “What they have done is to subserve the private interests of the builders. The perception of the High Court is correct. It does not suffer from any infirmity.”

“How did you allot the land?” the court asked. “Mindlessly allotting the land without consulting the law department. You are trying to overreach the law. You’re bypassing your own law department… This is a situation before tsunami.”

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In its previous hearing,the court had warned,“We will not keep our eyes closed. You take it (agricultural land) from one side and give it to the other. This has to go,and if it does not go,this court will step in to ensure that. It is development of one section of the society only.”

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