Greater Noida Development Authority is in news again. This time it has come out with Draw of Plots in Sector-2, Greater Noida. The scheme details are below SECTOR NAME: 02, PLOT SIZE: 162 Meter, TOTAL PLOTS : 1200, REGISTRATION MONEY : 1,70,100/- *SECTOR NAME: 02, PLOT SIZE: 220 Meter, TOTAL PLOTS : 800, REGISTRATION MONEY : 2,31,000/ The Tentative rate of Allotment will be Rs 10,500/- per sqm. Location charges are extra. This is definitely disappointing news for all investors who have subscribed to its earlier schemes. Sector-2 location is definitely better than the Omicron, XU, Mu etc locations in which it has given the plots/built up houses in earlier schemes. However the plot/built up houses allotted there are much costly comparable to the current scheme. Consider an example. Built up house of 200sqm in Omicron – 1A as per BHS-2008 scheme cost approx. Rs. 38 lakhs with extra charges for location. Even if we go by 200sqm the price comes out to be Rs. 21 lakhs. This means the authority has charged Rs. 17 lakhs for construction. So the question which arises is 1) Does the plot rate charged from investors of BHS-08, BHS-09 and subsequent schemes reasonable 2) Does the construction costs charged for built up houses genuine. Certainly not. The area like Omicron, XU etc is way too far compared to sector 02 and does not deserve such premium. Also the construction cost is too high as compared to quality of construction offered by the GNIDA. A visit to these places is certainly disappointing not because of location of such sectors but also construction quality compared to price being charged. Things might have looked better a year or two back because of markets but today the scenario is different. Not only prices of land have decreased but also construction cost has gone down. Many responsible builders have buckled under the pressure of government, investors etc and have reduced the price. DLF is one example where not only company has studied the market but also has heard the government, investors and reduced the price. It has returned not only cash to existing investors but also reduced prices for new investors. Another pain in BHS-08, BHS-06, BHS-09 etc schemes was related to the payment that was made for the house. It did not encouraged financial institutions to offer home loan. Only two NBFC’s -HDFC and LIC housing Finance offered the loan. An HDFC person told us “Our HDFC head knows people within the GNIDA. Hence you don’t have to worry about paperwork. Just sign the documents as we have internal setting within organization. Even though GNIDA does not approve any such lender as per scheme but we know people inside GNIDA who would offer approval. You don’t have to worry because our top management is in good terms with GNIDA people”. The fact is that HDFC also charged some amount for getting the paperwork signed from GNIDA (which was ofcourse unofficial). Here I am not sure whether that HDFC sales person told me the truth or he was boasting in order to get my account. We don’t know the truth here and we don’t blame/charge anyone. The people should be allowed to approach banks for loans because a common man does not have Rs. 38 lakhs with him to invest in a house whose possession is after 3 years. It is a time when GNIDA have to hear out the voices being made by the people. The association of BHS-09 and BHS-08 has been trying hard to approach the Head of GNIDA but the results are not very encouraging. The fight is long and that too with a government authority that everyone considers will look after interest of common man. The main requests being made by the scheme allottes are 1) Reduction in prices and bringing it to more realistic level. The price should match the location and cost of construction. 2) Flexibility on payment. The people are sick and tired of HDFC and LIC housing finance due to high rates and want to shift their loans to banks like SBI. HDFC offered the loan at 10.25% and soon after took it to 11.5%.

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Greater Noida is considered the future city same in line of New York. It has offered flexibility to big builders like BPTP etc who were unable to offer installments in such time. Considering this why a common investor should not be considered in such a bad time. Many investors are looking forward to GNIDA and Mayawati to help them in such times. An article on web Chance for Mayawati to be a Hero reflect similar sentiments. Yes we want Head of GNIDA or Mayawati to demonstrate how they are no less than corporate CEO’s. People believed in the dreams of Mayawati and GNIDA of a world class township and it is the time that they should look after their interest too.

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