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The Ghaziabad Development Authority (GDA) may be liable to pay increased compensation of Rs 1,000-1,200 crore to farmers for the land procured for the Indirapuram and Vaishali residential developments between 1986 and 1989. The Allahabad High Court will review the GDA's petition on July 12, challenging the higher compensation rate of Rs 297 per square yard established in 2017. The GDA is exploring options to recover the additional costs from developers, while Apartment Owners' Associations and Residents' Welfare Associations oppose passing on the increased compensation to flat owners.
The Ghaziabad Development Authority (GDA) might be liable to pay a sum of Rs 1,000–1,200 crore as increased compensation to farmers for the 1,748 acres of land they procured for the Indirapuram and Vaishali residential developments between 1986 and 1989. On July 12, the Allahabad high court will review the GDA's petition requesting reconsideration of the court's decision to establish a higher payment of land compensation at Rs 297 per square yard in 2017.
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Durgesh Singh, the GDA tehsildar, stated that the development authority, which is currently facing financial difficulties, must have a backup strategy in the event that the High Court confirms its initial judgement. The developers of the two housing projects may be required to pay additional costs that the GDA seeks to recover. From 1986 to 1989, the GDA obtained a total of 1,295 acres for the Indirapuram housing project and another 453 acres for the Vaishali project at different prices per square yard, Rs 90 and Rs 50, respectively.
In 1991, the farmers who were impacted sought a greater amount of compensation by approaching the district court. Singh stated that in 2001, the court made a ruling that favoured the farmers, resulting in an increment of the compensation rate to Rs 160 per square yard. The order was the subject of a challenge by the authority in the Allahabad High Court. The high court raised the compensation to Rs 297 per square yard in 2017, and later GDA appealed against this order in the Supreme Court. In 2019, the Supreme Court instructed the GDA to submit a review petition to the high court but also gave the development authority the option to return to the court if the high court reaffirmed their initial ruling.
Although the final figure is yet to be determined, we anticipate the compensation amount to be somewhere between Rs 1,000 crore and Rs 1,200 crore, according to the 2017 HC directive. Singh mentioned that it is possible to recoup the increased compensation from developers and plot proprietors. The impact will ripple through the numerous proprietors in the municipality.
According to Singh, the plot owners and developers reached an understanding that they would be willing to shoulder the increased cost of land compensation, if necessary, in the future. The Apartment Owners' Associations and Residents' Welfare Associations are strongly opposed to any attempt to retrieve elevated land compensation sums from the residents who own flats.
According to Alok Kumar, who supports the Federation of AOAs, we are not responsible based on the idea of owning a freehold property. Additionally, if there was an agreement between GDA and developers, it was a mutual understanding, and residents of individual flats cannot be compelled to cover the cost of increased compensation. Indirapuram boasts of almost 70 construction ventures, whereas Vaishali flaunts more than 25 of them.
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