Noida Extension Developers to Refund Buyers with Interest
A significant decision has been made in favor of home buyers in Noida Extension, as developers of projects in this area will be refunding the full amount with interest to buyers. This ruling comes after a bench of Justice G S Singhvi and Justice A K Ganguly considered the pleas of individuals who had booked flats in housing complexes developed by seven builders.
Refund and Alternative Project Offers
- Full Refund with Interest: Open to all buyers who booked flats in housing projects located in Sahberi village. This area is notable for having land allotted by the Noida authority without completing the necessary legal and acquisition processes.
- Alternative Projects: Buyers will also be offered the option to shift to other projects launched by these developers in the same area, providing a continued pathway to homeownership.
Clarification on Refund Eligibility
Developers have clarified that buyers seeking full refunds for bookings outside of Sahberi village will be subject to cancellation penalties, as per standard rules. This distinction underscores the importance of the location within the broader Noida Extension area.
Reaction from CREDAI
A spokesperson for CREDAI (Confederation of Real Estate Developers Association of India) highlighted that despite the developers being faultless in the matter, they have opted to absorb the loss and provide full refunds with interest to affected buyers. This move demonstrates a commitment to consumer satisfaction and regulatory compliance.
Next Steps
- Awaiting Greater Noida Authority's Guidelines: Developers are currently waiting for clear instructions from the Greater Noida Authority to ascertain the specific boundaries of Sahberi village. This clarification is expected within two weeks.
- Formal Letters to Follow: Upon receiving the necessary guidelines, developers will send formal letters to affected buyers, outlining the options for either shifting to alternative projects or receiving a full refund with relevant interest.