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Farmers’ Dues Might Weigh Heavily On Jaypee HomeBuyers



Farmers’ Dues Might Weigh Heavily On Jaypee HomeBuyers

The Uttar Pradesh government is trying to deal with the compensation to farmers that has to be borne by homebuyers

The Uttar Pradesh Government seems to be equipped with a solution to save the homebuyers who had booked their flats in Jaypee Infratech. With public sector builder NBCC on board, the homebuyers are soon to get out of crisis situation. 

However, the UP government has to find a solution for enhanced compensation to displaced farmers. It seems that the compensation will have to be borne by homebuyers and banks.

The two round of meeting with Finance Minister Nirmala Sitharaman resulted in the income tax department agreeing to temper down its demand which was claimed to be presumptive. The income tax department was accused of being over-aggressive as far as assessment was concerned. 

The tax department had made a claim of around Rs 30,000 crore after assuming the full value of land that was transferred to construct the Yamuna Expressway and the land around it that is being used for real estate development. 

The claim accounts for Rs 1,000 crore a year with over 29 years of concession period remaining. The UP government has still not provided any clarity on additional compensation that amounts to Rs 1,700 crore to be provided according to a court ruling. 

The Centre thinks that the burden should be borne by the homeowners as well as the banks which have rights over the surplus land of 4,500 crores. Some of the other projects in Noida and Greater Noida have received similar instructions from the court, wherein the additional compensation for land acquired from farmers had to be borne by the ultimate beneficiary. 

At the first meeting convened by the Finance Minister in the presence of Urban Affairs Minister Hardeep Puri, the government had clarified that the concessions in the form of lower claims would be available only to NBCC. Bankers have expressed their full support for the construction company. The Executive Director of Rites, PK Gupta will shortly take over as the new head of NBCC. NBCC is a part of the project as a consultant rather than taking over the company as a resolution applicant.  

Source: TOI
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