Noida Real Estate Projects Halted Amidst Land Dispute
Construction on certain residential projects in Noida has been temporarily halted by the Allahabad High Court following a petition filed by over fifty farmers from Sarfabad village, adjacent to Noida. The court's decision affects projects situated on six hectares of land in Noida Sectors 120 and 75.
Farmers' Allegations and Court Proceedings
The farmers allege that the Noida Authority improperly leased their land to real estate builders without completing the necessary acquisition procedures. They claim that due process, as outlined in law, was not followed in the transfer of the land.
The Allahabad High Court has given the Noida Authority two weeks to respond to the allegations. While the date for the next hearing remains unannounced, it is expected that the court will schedule one within three weeks.
According to the farmers' petition, a total of 6.7260 hectares of land was leased to real estate builders by the Noida Authority. The petition points out that though the Authority had issued a notification for the acquisition of this land under Sections 4 and 17 of the Land Acquisition Act on April 7, 2011, the acquisition process was not finalized before it was leased to the real estate developers. Subsequently, the builders commenced construction activities on the acquired land.
Comprising 11 khasras, the land in Sarfabad village is at the heart of the dispute. The farmers are demanding the cancellation of the lease deeds granted to the private real estate builders and the return of their land.
Potential Impact and Legal Arguments
Amrita Rai, the legal representative for the farmers, believes the court's decision could ultimately affect close to 120 hectares of land. Although the current stay order pertains specifically to the land owned by the petitioners, it's anticipated to have broader implications for the larger area currently held by six to seven real estate developers. The petitioners also sought to revoke Section 4 of the Acquisition Act and nullify the acquisition process, arguing that the final award was not issued within one year of Section 4 being imposed, a violation of the law that should lead to the suspension of the notification.
Builders' Response and Market Overview
Prominent builders have refrained from commenting on the situation and its potential impact on their ongoing housing projects. Industry data reveals approximately 10,000 dwelling units currently under construction in the region, with projects worth ₹5,000 crore underway. The court order could jeopardize all these projects. The Noida Authority, however, maintains that the court order pertains to only 500 sq. m of land and that they have not yet received a copy of the stay order. Noida Authority officials stated they would conduct a thorough review of its implications upon receiving the order.