Meltdown Hits Mega Noida Project
Meltdown Hits Mega Noida Project, Unable To Pay For The Land As Agreed
So badly has Noida been hit by the economic meltdown that its most ambitious commercial area project, to be built on 3.82 lakh square metres in Sector 94, may not come through as the consortium concerned is unable to pay for the land as agreed.
The builders consortium, Business Parks and Town Planners (BPTP), is learnt to have written to New Okhla Industrial Development Authority to say that it is unable to pay it at the agreed rates.
The consortium had beaten some major developers in an open bid for constructing a commercial and business complex in Sector 94 on March 11 last year. It had bid for the land at the rate of over Rs 1.30 lakh per square meter. And, while the consortium made an initial payment of more that Rs 1,300 crore of the Rs 5,000 crore at the time, as registration money and allotment money, it was unable to make any more payments.
Confirming this, NOIDA chairman, Lalit Srivastava, told this correspondent, "The government had recently announced a policy to deal with just such things in times of recession. The consortium will have to pay 10 per cent of the amount so far paid, to NOIDA, as penalty. It will also keep the land it has already been able to pay for. The rest of the land will be forfeited. Such defaulters have been asked to submit their proposals by June. But, this case is coming up for discussion in the NOIDA board this Friday.''
A senior BPTP official said: "It is true that we are not able to pay for the land, but the turmoil in the global market is doing this to so many companies. This is why we have written to NOIDA to tell them that we would like to avail of the schemes the state government has announced for such cases. We are waiting for their reply.''
Meanwhile, the number and value of land transactions in Noida, including Greater Noida, have gone down sharply. Sub-registrar Tej Singh Yadav told TOI: "We have been able to meet only 30 per cent of the target set for revenue recoveries in January. Last January, we met 47 per cent of the target. The number and total value of the registries done in the first 11 months of 2008 was about half of that of the corresponding period in 2007. It was only in the last 15 days of December that about half of the calendar year's registries were done, in terms of both value and number. This was because in the last half of December people somehow got the mistaken impression that the state government was going to raise the property and rent agreement registration rates very soon.''
Meanwhile, said a senior revenue official, sale and purchase of land and buildings have almost come to a standstill in Noida as well as Greater Noida. People are waiting for prices to fall further, before they make a move. Srivastava agreed that the situation was grim.
Source: TOI
So badly has Noida been hit by the economic meltdown that its most ambitious commercial area project, to be built on 3.82 lakh square metres in Sector 94, may not come through as the consortium concerned is unable to pay for the land as agreed.
The builders consortium, Business Parks and Town Planners (BPTP), is learnt to have written to New Okhla Industrial Development Authority to say that it is unable to pay it at the agreed rates.
The consortium had beaten some major developers in an open bid for constructing a commercial and business complex in Sector 94 on March 11 last year. It had bid for the land at the rate of over Rs 1.30 lakh per square meter. And, while the consortium made an initial payment of more that Rs 1,300 crore of the Rs 5,000 crore at the time, as registration money and allotment money, it was unable to make any more payments.
Confirming this, NOIDA chairman, Lalit Srivastava, told this correspondent, "The government had recently announced a policy to deal with just such things in times of recession. The consortium will have to pay 10 per cent of the amount so far paid, to NOIDA, as penalty. It will also keep the land it has already been able to pay for. The rest of the land will be forfeited. Such defaulters have been asked to submit their proposals by June. But, this case is coming up for discussion in the NOIDA board this Friday.''
A senior BPTP official said: "It is true that we are not able to pay for the land, but the turmoil in the global market is doing this to so many companies. This is why we have written to NOIDA to tell them that we would like to avail of the schemes the state government has announced for such cases. We are waiting for their reply.''
Meanwhile, the number and value of land transactions in Noida, including Greater Noida, have gone down sharply. Sub-registrar Tej Singh Yadav told TOI: "We have been able to meet only 30 per cent of the target set for revenue recoveries in January. Last January, we met 47 per cent of the target. The number and total value of the registries done in the first 11 months of 2008 was about half of that of the corresponding period in 2007. It was only in the last 15 days of December that about half of the calendar year's registries were done, in terms of both value and number. This was because in the last half of December people somehow got the mistaken impression that the state government was going to raise the property and rent agreement registration rates very soon.''
Meanwhile, said a senior revenue official, sale and purchase of land and buildings have almost come to a standstill in Noida as well as Greater Noida. People are waiting for prices to fall further, before they make a move. Srivastava agreed that the situation was grim.
Source: TOI