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TOUGHER NORMS

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Be it in the residential space or for office space or for multinational companies (MNCs), the Noida-Greater Noida region has developed into one of the country’s prime realty hubs. And in a bid to further accelerate the speed of growth and development, the authorities are dead set to make transparency a hallmark. Very much in order, therefore, is a vigilant and firm Noida Authority, much stricter than ever before

Planned with a Vengeance goes the tagline for Greater Noida. And keeping in tune with the ethos has emerged better infrastructure, roads, houses and public utilities and even more impressive residential, commercial and educational facilities-all primed to make Greater Noida a truly world class experience – an experience not to be found in other cities.

This has spurred key developments like the upcoming Metro project, green buildings, state-of-the-art safety and security systems for the public and residents. And in order to support these systems, the Noida Authority is set to usher in a slew of changes in norms adopted geared to promote greater transparency in the realty sector of the area.

One key proposal by the Noida Authority is to implement the UP Apartment Act in letter and spirit among measures.

The move on the UP Apartment Act 20 10 seem to have been kicked off by a spate of complaints by various resident welfare associations (RWAs) against builders arbitrariness and whimsical attitudes recent courts orders like the Supertech Emerald Court case where the court had queried–about public policies governing changes in open green areas in declared residential schemes.

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The recent announcement by the Authority to implement the Act with effect from june 2, 2014 has raised eyebrows. As the Uttar Pradesh state legislature passed the Act four years ago in March 2010, so will violations (as per the ACT) before june 2, 2014, not attract a penalty? Why did the Authority take four years to implement and act that was notified in the state in 2010?

Rama Raman, chairman, Noida, Greater Noida Authorities and the Yamuna Expressway Industrial Development Authority (YEIDA), recently had said in a press conference: “ Greater Noida and Yamuna Expressway areas are governed by the UP Industrial Act, 1976. Therefore, the Apartment, Act was not put into effect by the three authorities. Only after examining both, has the Apartment Act been implemented. It took time to examine them.

Now the Authority is all set to bring in transparency between the buyers and builders in a manner that will eliminate all discrepancies in the system. Explaining the pros and cons of the implementation of the UP Apartment Act, Raman said: “The builders -have to strictly on the map allotted to them. They need to bring all fees’ confidence and their rights should be protected.Developers will not keep allottees in the dark on their facilities like parking area and all, and in five years, they need to handover the status report to the management.”

One key proposal by the Noida Authority is to implement the UP Apartment Act in letter and spirit among other measures. The move on the UP Apartment Act 2010 seems to have been kicked off by a spate of complaints by various resident welfare association (RWAs) against builders’ arbitrariness and whimsical attitudes and recent court orders like the Supertech Emerald Court
The UP Government will soon sign and agreement with Delhi Metro Rail Corporation for a Metro Rail project in Noida. The decision in this regard was taken on June 24 at a cabinet meeting chaired by CM Akhilesh Yadav
With a large number of developers showing interest in constructing green buildings in Noida, the Noida Authority has also decided to rope in another agency for evaluating and approving design systems of upcoming green building projects in the city
In a move to provide better safety and security to the residents, the UP Government has notified five new police stations in Noida and Greater Noida and unveiled a Rs 10 Crore modernization plan for better policing in the twin cities.

rama_ramanGreater Noida and Yamuna Expressway areas are governed by the UP Industrial Act, 1976. Therefore, the Apartment Act was not put into effect by the three authorities. Only after examining both, has the Apartment Act been implemented. It took time to examine them.
RAMA RAMAN, Chairman, Noida,Greater Noida Authorities & YEIDA

Concurring with Raman, Manoj Rai, OSD, Noida Authority, said: “It will go a long way in regulating the real estate sector in terms of a number of things – firstly, ensuring and safeguarding buyers’ interest, secondly, bringing in more transparency in the buyer-seller market. Now a builder has to stand committed to what he has promised to the buyer. No developer can change things like the lay-out, green cover, number of flats to be constructed in a certain area, etc.”

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However, with the changes of major norms, the buyers may suffer to some extent. For instance, the land allotment rates have been increased significantly in so many areas although the Authority disagrees and says that the rates have remained the same as per the inflation index.

Asked if the enhanced rates make any difference in the Authority’s exchequer, Raman said: “In fact, we have not increased the rates. Last year, if we discount the rate as per inflation index, it has remained the same… The number may have been increased, but in the inflation index, the purchase value remains same. We give compensation to the farmers in that same ratio too. On that ratio, the land rates may have been increased accordingly.”

However, PC Gupta, CEO, YEIDA, said: “On hiking land allotment rates, the Authority works on a no-profit no-loss basis. Since we have to pay extra to farmers for their land, we have to pass it on to the land buyers. Primarily, this hike is due to increased land acquisition cost. This is not going to dampen the investor’s sentiment as we are witnessing increase queries for land even after the announcement of hike in land allotment rate.”

Rai puts it in different way, saying that the rates of allotment are factors of the Authority’s cost. “We have a cost index system which takes into account many things-there is a cost of land acquisition, there are administrative charges related to it, then there are site developments such as road, sewage, street lights, park, etc. We also have leave certain areas aside for the green cover. All these add up to the cost of the land and taken into account in indexation. The allotment rates have not been hiked beyond the index cost.”

P C GuptaOn hiking land allotment rates, the Authority works on no-profit no-loss basis. Since we have to pay extra to farmers for their land, we have to pass it on to the land buyers. Primarily, this hike is due to increased land acquisition cost. This is not going to dampen the investor sentiment as we are witnessing increase queries for land even after the announcement of hike in land allotment rate
PC GUPTA, CEO, YEDIA

METRO PROJECT

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The long-awaited 30-km Metro rail link between Noida and Greater Noida could soon be on track. The ministry of urban development has already given the green light for the Delhi Metro Rail Corporation’s (DMRC) appointment as a consultant for the project on a turnkey basis. Pending infrastructure projects including elevated roads in Noida
– over the Shahdara drain and two others – and a stabling yard for the proposed Metro line between Kalindi Kunj and Botanical Garden stations are also likely to get the go-ahead from the Board.

As per media reports, the Uttar Pradesh government will soon sign an agreement with DMRC for a Metro rail project in Noida. The decision in this regard was taken on June 24 at a cabinet meeting chaired by UP chief minister Akhilesh Yadav. However, the date for signing of the agreement has not been finalised yet.

“An agreement will be made between Nadia and DMRC for a Metro rail project between Kalindi Kunj and Botanical garden. Noida Authority CEO Raman has been authorised to sign it,” a spokesman recently said to the media.

BABUSPEAK

manoj raiIt will go a long way in regulating the real estate sector in terms of a number of things-firstly, ensuring and safeguarding buyers’ interest, secondly, bringing in more transparency in the buyer-seller market. Now a builder has to stand committed to what he has promised to the buyer. No developer can change things like the lay-out, green cover, number of flats to be constructed in a certain area, etc
MANOJ RAI, OSD, Noida Authority

WHAT DEVELOPERS SAY

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Arvind singhThis move of increasing the land allotment rates is set to have a surging effect on the land costs and ultimately the prices, as the registry department predictably updates its rates after the authorities set the prices. This hike centers on the necessity for a greater revenue generation which is very essential for the authorities for the further development of various state projects as well as compensation to the farmers in some cases. New entrants in the sector will face the maximum heat of high land costs and decreasing demand but otherwise. Already acquired land and running projects will see the growing pattern of demand even in the near future
ARVIND SINGH MD, KRasa Group

RKaroraRevision in sector rates or allotment rates signals higher infrastructure development plans of the Government/Authority in the area. Since the authorities find resources for development work like construction of roads, flyovers, implementation of Metro line project etc, mainly through revision in sector/allotment rate, the revision in both indicates that the area is going to get infrastructure facilities. This way, the properties appreciate and the rate increase offsets with the value appreciation
RK ARORA, CMD, Supertech

GREEN COVER

With a large number of developers showing interest in constructing green buildings in Noida, the Noida Authority has also decided to rope in another agency for evaluating and approving design systems of upcoming green building projects in the city.

“The Authority at present allows only those builders who have received the certification from Leadership in Energy and Environmental Design (LEED) and Green Rating for Integrated Habitat Assessment (GRIHA) to construct green buildings. The third agency that will be roped in is the Indian Green Building Council,” Rai said.

According to the Authority statistics, Noida has nearly 80 green buildings at present, while 80 per cent of the ongoing constructions are based on the green concept.

“The city is set to become a hub of green buildings in a few years. The authority had introduced the concept in 2010, but it had received a lukewarm response from developers,” said a top official of the Authority.

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To encourage the concept, the Authority rolled out an additional 0.5 per cent floor area ratio (FAR) for free to two dozen developers who had signed up for the green building projects. “Numerous developers are now interested in constructing green buildings in Noida as they gain extra FOR. Keeping the trend in mind, we have decided to rope in IGBC for certification,” the official said.

STRONG POLICING

Amid criticism of the state government on law and order in Noida and Greater Noida areas, the government is planning a better policing system in the immediate future. In a move to provide better safety and security to the residents, the Uttar Pradesh government has notified five new police stations in Noida and Greater Noida and unveiled a Rs 100-crore modernisation plan for better policing in the twin cities.

The five new police stations are Noida Phase 3 (Sector 71 ), Noida Expressway (Sector 128), Ecotech-1, Ecotech-3 and Knowledge Park. The funds for these new police stations as well as the upgrade programme will be provided by the Noida Authority under its ‘smart city’ project. Land has already been earmarked for the new police stations.

“The government is committed to ensure the security of residents. Keeping  that in mind, the CM  has passed and notified  the five  police  stations  dedicated  to the twin cities,”  said  principal  secretary  (home)  Deepak  Singhal  also  concede in g  that  there  was a  ‘negative  perception’ of UP on  the law  and order  aspect.

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WHAT DEVELOPERS SAY

Vikash-Bhagat-Director-Airwil-Group-150x150With the hike in allotment rates. land will cost more now for the developer and eventually the burden will be borne by the customers. Since much of the land in Noida has been already sold and construction is happening, so this should not affect the prices much. Yamuna Expressway relatively being a newer destination of NCR is far less expensive than Noida or Gurgaon or any such developed region. As a result of which, the prices there will always remain lesser and so a marginal increase in prices due to hike in land allotment rates will not affect the end users’ pockets much and thus the overall demand shall not be affected adversely .
VIKAS BHAGAT, Director, Airwil Group

Gaurav GuptaWith the implementation of this Act every consumer will be provided with the right to check relevant documents like layout plans submitted by the developers to the local authority and timelines for project completion which results in precision and clarity in the processes. Also, the developers will be able to keep a check on the delayed payments of EMis and can motivate buyers to adhere to the payment timelines. However, the Apartment Act needs to be modified to ensure its compliance in a practical way. Many a time, projects are launched in phases or FAR is purchased over a period of time. This cannot be presented or disclosed in the present form of the Act.
GAURAV GUPTA, General Secretary,Raj Nagar Extension Association & Director,SG Estates

Sushant Muttreja, MD, Cosmic GroupOn the UP Apartment Act. It says that no changes can be done without intimating the customers. In this work. Changes can also be due to issues like technology upgrade. Going to customers for such issues becomes pretty unnecessary.
SUSHANT MUTTREJA, CMD, Cosmic Group

Declaring that the Noida Authority is disbursing 10 crore in the first phase of the project, Raman said: “There will be more police visibility on the roads as within a week, we will provide 75 PCR vans.”

As far as the Yamuna Expressway area is concerned, Gupta of YE IDA said: “Two new police stations have been sanctioned for the region. Perception related to security issues shall improve and also investors’ sentiment shall improve due to this.”

Raman has already directed officials to speed up the process of building five police stations and putting in place the additional infrastructure like 90 more PCR vans, 94 leopards (police motorbikes), 19 SUVs (with hi-tech equipment) and 1 09 static wireless sets. The government has also approved the posts of 218 additional sub-inspectors, 1, 590 head constables and 624 constables to shore up the police force, which at present has 1 ,600 personnel while it actually needs at least about 4,000. Four fire stations, an elaborate CCTV network with 600 cameras. A cyber cell and an advanced forensic laboratory complete the police modernisation package for the area.

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