Okhla Sanctuary Controversy: Relief Ahead For Noida Homebuyers?

The National Green Tribunal recently cancelled the environmental clearance given to around 50 projects in Noida, which fall under 10-km vicinity of Noida's famous Okhla Bird Sanctuary. The green tribunal's decision has put the fate of about 100,000 home buyers in limbo.

The UP government has reduced the eco-sensitive zone from 10 kms to 1.27 kms was opposed by the Green Tribunal. This retrospective change in the approval given by the Union Environment Ministry has affected many home buyers, who have already made their investments and are paying EMIs (easy monthly instalments). A number of the affected projects have been under construction since the controversy began over a year back. 
The tribunal has told the Noida authorities to halt handing over completion certificates to projects, which are completed. Projects that were under construction were asked to halt.

The UP government filed affidavits against the case and the case has been referred to the Ministry of environment and forests (MoEF). The ministry is considering the issue and yet to respond to that. 

The affected ones
The 10-km 'green' zone around the sanctuary has many projects by Jaypee Group, Supertech Limited, Amrapali Group, ATS and Paramount. Of the 50 affected projects, 15 are close to completion and seven have only launched their projects. The rest are in various stages of construction. That would affect over 100,000 home buyers, in various phases of payments. Most of the owners have started paying EMIs for the loans before possession. The number of ready for possession apartments in Noida is 20,000.

No possession plus higher costs?
The latest setback to the harassed home buyers in the green zone is, that the state revenue authorities have asked them to pay stamp duty and registration for revised circle rates. The circle rates were revised on August 7, even as the ministry decision on determining the demarcation is yet to be determined.

What is wildlife law?
In addition to getting environmental clearances, builders also have to get a clearance from the National Board of Wildlife for projects that are around ecologically sensitive areas such as national parks and sanctuaries. The wildlife action plan restricts developments around 'safety rings' around wildlife zones. This ruling has the Supreme Court backing, too.
The projects in question here have already been stalled for two years by the tribunal. An appraisal committee will now take consider giving a wildlife clearance to these projects on a case-by-case basis. The panel will invite public comments on the matter and only after considering these, it would take a final decision. This whole process might take much longer than expected.

The silver lining
Given the gravity of the situation, the standing committee may consider solving the problem without affecting the real estate investors and builders in the area.
One of the points of the notification says green zones around sanctuaries will be able to exist where specific activities can be regulated. Although it would mean stringent norms for living in the areas, completed projects may still get a go-ahead, if the panel decided to take this into consideration.
Also, the demarcation of how much land around a sanctuary can be defined as eco-sensitive is not written in stone. This may allow a few projects to see light of the day.

Impact on Noida realty
This controversy may not help a further drop in sales in Noida, which has already earned a dubious distinction in a slowing realty demand. Sales dropped 43 per cent in Noida in 2014. At around 100,000 units, the city also has the largest number of unsold inventory, thrice as much as in Gurgaon. Property prices have also not shown good growth trends, as they declined marginally last year.

(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)