Bad News For Yamuna Expressway Is Good News For Faridabad Property
5 June 2012
Flat buyers of Yamuna Expressway are caught in a huge Catch 22 situation.
These poor souls obtained loans and invested their life savings in Yamuna Expressway projects only to witness an illiquid and non-appreciating market.
Then, out of the blue, the new UP government scrapped the Jewar International Airport, which was the reason why real estate activity was picking up in that area. This led to a crash in real estate rates and buyer disinterest.
Now. fresh trouble has come calling for most Yamuna Expressway projects. According to Rama Raman, CEO of Yamuna Expressway Authority, no builder has been authorized to collect booking amount unless and until his layout plan has been cleared.
The fact is that out of 18 projects on Yamuna Expressway, only 2 have gotten their project plans approved. Rama Raman goes on to add that all buyers must check whether the project plans are approved before booking a flat.
This raises many questions:
1. No buyer ever checks whether plans are approved or not. In fact, many people book at pre-launch rates, which is the stage at which the builder acquires the land, way before even the plans are made. So, what are the checks and balances placed on the builder. Shouldn’t the YE Authority ensure that no builder can accept booking amount until his plans are cleared? After all, the land is allotted by the YE Authority — it can easily enforce some rules. Why shift the onus on the poor buyer who does not have the legal resources to check and verify all documents? This is pure exploitation of the poor buyers.
In fact, you will be surprised to learn that plots allotted by the YEIDA
2. Why is this news being given so much importance? After all, clearing the layout job with any statutory authority is not a huge task. All the builder is to file an application, pay the necessary fees, perform some administrative and liaison work and presto, you have the license.
However, there is more to the issue than meets the eye. There are two huge technical issues that the new UP government has dug up:
a. Land on the Yamuna Expressway has been earmarked for industrial use but is being sold as residential land.
b. According to the NCR Regional Plan, an area can be developed as a Metro only if it is home to at least 10 lakhs population, The present population is YEIDA area is just 3.39 lakhs.
Whatever may be the case, it is a fact that buyers have been 100% exploited by the builders and the government authorities. It is time that all YE investors shift their focus to Faridabad property, which is devoid of such exploitation and hassles. Plus Faridabad is a developing city, which will soon get a Metro rail. It makes sense to invest here instead of fishing in the troubled waters on Noida Expressway, Greater Noida and Yamuna Expressway.
Note that we are property dealers based in Faridabad and therefore our bias is towards Faridabad and Gurgaon. If you want to buy or sell Faridabad property, call us at +91 88006 40006 and we’ll get you a real solid, yet transparent, deal.