Greater Noida: For the builders and investors already bearing the brunt of the revised policies of the government on land acquisition with cancellation of allotted lands, another shock seems to be in the offing.

According to a proposed agreement, they will now have to shell out more money to the Greater Noida Authority which is planning to hike the land rates to pay for the additional compensation to the farmers.

Under the agreement, the Authority is required to pay an additional compensation of Rs 550 per metre square to the farmers of Patwari village which amounts to a huge burden of Rs 330 crores. On realisation of a similar deal with all the villages of Noida Extension, the Authority will have to pay Rs 8,000 crore to the farmers.

Already reeling under debts, the Authority has decided to shift the ball in the court of the builders. Speculations are rife that the decision will ultimately affect the customers who are planning to own a home in Noida Extension as the escalating cost of land to the builders can increase the value of their flats.

The decision is set to pinch the pockets of the residential plot allottees in Sector 2 and Sector 3 as there are 2,500 plots in Sector 2 and 200 houses and 3,000 plots in Sector 3.

The Authority is expected to take a decision on the proposal to increase land rates in the Board meeting scheduled on September 2. However, the percentage increase in land rates is still being discussed.

According to Chairman of Gaur builders, Manoj Gaur, “If the Authority hikes land rates, we will also be forced to increase the prices of the flats. The increased rates will not be applied on booked flats but will be applicable on new investors.” It is to be noted that the builders have made such assurances in the past too.”