Noida: The recent verdict of the Supreme Court and the Allahabad High Court on Greater Noida land acquisition has posed new troubles for Greater Noida Industrial Development Authority (GNIDA). 

GNIDA, which is presently in debt of Rs 4,000 crore and is paying Rs 35 crore per month as interest to banks, is concerned about Rs 3,400 crore which they might have to return to investors and builders after court’s decision on Sahberi and Patwari villages.

Generally, GNIDA arranges the money for development of the city by selling the government land. Three years back, country witnessed recession in the real estate sector which directly affected the functioning of GNIDA. During this period investors were not willing to invest their money in urban residential projects. Somehow, GNIDA took loan from banks and acquired lands from farmers by giving compensation for their land.

In 2008, GNIDA came up with the Group Housing projects, which attracted the investors. There was slight improvement in GNIDA's financial condition with the allocation of land to the investors. The development authority generated revenue of Rs 3,000 crores by charging 10 percent registration fee on allotment of 2500 hectares of land.

Within five years, GNIDA was expected to earn Rs 31,000 crores. But with the Apex Court upholding the Allahabad High Court order which had annulled the acquisition of land in Sahberi village and Allahabad High Court decision to set aside land acquisition in Patwari village has made GNIDA lose all hopes of collecting such an astronomical figure.

Since there are chances of the authority being asked to return Rs 400 crores to three thousand allottees and Rs 3,000 crore to builders, the GNIDA is left with no other option but to take loan from banks. However, banks provide loans only on the basis of land acquired by the Development Authority.

Consecutive court orders to set aside land acquisitions have given serious jolt to GNIDA. It has disturbed the process of revenue generation used in development projects. In such a condition, it has become difficult for GNIDA to arrange money for other projects.

(JPN/Bureau)