Friday, January 9, 2009

Greater Noida - Another Scandal in the making

Gone are the days when Greater Noida Authority (GNIDA) cash registers were ringing by selling far away pieces of land for commercial and residential use. Commercial properties were sold at high prices through a bid system and even sectors were cut out and sold for residential user. There was no respite in prices and months after months they were coming out with new schemes at exorbitant prices. A large deal of BPTP for Rs. 5000 Cr and sale of land to residential users with lump sum payment was norm of the day.

While expectation is that Government bodies should come out with easy payment mechanism to make it easy for end user to own a house, Greater Noida was opposite and was very strict with payments and deadlines. HUDA, Haryana Govt Authority, sold land in Faridabad couple of years back through a draw system and the payment was so flexible that some people are even now paying Rs. 1.5 lakhs after every 6 months with their payment staggered over 5 years or so. The case of Greater Noida authority was clearly opposite. Take example of BHS- 06 or BHS-08, a residential scheme, where built up houses was allotted through a draw. Right after draw one has to deposit a lumpsum amount of Rs. 40 lakhs into the authority account. One cannot opt for staggered payment because then one would have no chance to qualify in draw (they had a clause wherein application with staggered payments would be considered second in draw and only leftovers would be allotted to them). On top of it no one from BHS-06 and BHS-08 could take loan to make this heavy payment because authority did not let you mortgage the house. End result was that only NBFC's namely HDFC and LICHF thorough their contacts managed to fund about 5000+ house. The loophole is that no one can still blame Greater Noida authority because they are no where in picture. This is clearly a monopolistic case wherein in order to source funding of 5000+ house the Banks would have gone extra mile to offer discounts and freebies. But clearly the opportunity was lost and only authority made gains out of it.

So the money flow with slowdown is drying up but their hunger has no limits. A new scandal is propping up where the authority is now asking BHS-06 250 sqm allottees to pay lease rent of 90 years and register the house. Confirmed reports has proven the fact beyond doubt that the built up houses are no where near the possession stage and still needs to be worked upon. In order to get cash at this stage they are asking for money without even talking about the possession. This is clearly beyond logic because after extracting all money from residents they would be having no incentive to work on remaining part of the houses. They are offering baits like reduction in duty from 8% to 5% without realizing that duty rate is 5% only in UP. The project is delayed by many months and now sensing major goofups in plan, Greater Noida Authority is planning to take everything before it becomes to late.

Clearly small number of residents does not constitute a vote bank hence they cannot exercise their muscles. The laws in India are so bad that monopolistic and anti- consumer practices are very common even at recognized places. Things easily noticeable are clearly ignored while unimportant things are made huge issues. No one would come and protect the residents because they have money to pay (hard earned and years of toil). Clearly if you are a responsible citizen, honest taxpayer, and a person who earns salary to make comfortable living- such exploitation should is a way of life in India.

My wishes to people of BHS-06 who are now accumulating above Rs. 8 lakhs for a piece of crap from Greater Noida Authority (GNIDA)


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