Impact of Supreme Court Decision
Investors and buyers are in a state of panic following the Supreme Court’s decision to uphold the Allahabad High Court judgment. The ruling has caused significant shock as it rejected the possession of over 156 hectares of land intended for developing a township in Greater Noida, also known as Noida Extension. The Supreme Court’s judgment, jointly comprising Justice G.S. Singhvi and Justice A.K. Ganguly, has dealt a blow to Mayawati’s government and the builders.
Affected Stakeholders
Approximately 6,000 buyers have been impacted by the reversal of these projects. Developers are taking steps to compensate buyers by either shifting them to other projects or refunding their money. However, buyers remain in a complete state of panic.
Development Uncertainty
Developers are confident that their projects are safe, causing further confusion among buyers. For example, Mr. Pandey booked a house in November 2010 in the Mahagun Mywoods project. The developers assert that their project is safe, yet the buyer wants his money back. However, canceling the booking would incur a 10% cancellation penalty, amounting to approximately INR 2 Lakhs. Similar sentiments are echoed by other buyers.