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SC order puts Noida property sector in jeopardy

Jul 12, 2011 09:14 AM IST India India

New Delhi: Noida Extension was pegged as North India's next big housing boom destination with cheap prices and spacious development, but after the Supreme Court's judgement all that might have changed.

Until last week the makeshift booking offices of developers across Noida extension were crowded with customers, but after the Supreme Court ruled in favour of the farmers, the tide has turned against both the developers and the customers leading to a deserted look at the booking offices.

Nervousness looms large over the Garg household. Ravi and his wife were among the 5000 investors whose project was scrapped by the Supreme Court ruling. Since then, he has been making calls to his developer to get his money back.

"I don't trust Noida Extension. I feel terrible that after a year I am told I have no property," said Ravi Garg, a home buyer.

Several other customers say, with developers waiting for the Greater Noida Authority to refund their investment in land, they aren't easily getting their money back.

However, developers have assured customers full support.

"We will have a separate fight with the Noida Authority. Customers will be refunded their money immediately," said Supertech CMD RK Arora.

But what's worse for Noida Extension's image is that sources in some banks, which have handed out loans for houses, say they will not be issuing further loans. They also say they are planning to stop disbursing money for already existing loans. With matters relating to two other villages in Noida Extension slated to come up in court next week, home buyers like Ravi can only hope they will not be forgotten.