How safe is your investment in Abadi land

In the last 1-2 years, Noida and Greater Noida real estate markets have seen a spurt in low budget housing. These properties are almost 25-50 per cent cheaper than the price of existing properties in the vicinity, staring as low as Rs 8 lakh. This has attracted huge buyer interest. Generally, builders come up with low rise structures of G+3 or 4 and with limited number of units and facilities within the residential complex.

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The question arises, why are they prices so low? Is it safe to buy these properties? “Such projects are mainly constructed on village land near the authority sector and offered at low prices. Developers/builders either bribe the Gram Panchayat staff or use Zamindari Act to obtain sanctioned maps, approvals and convert it to Abadi land” said Ankit Jain, director, Nirmaan Associates.

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Atulay Nehra, Advocate, Legal Expert said “The entire Gautam Budh Nagar land is notified and except the development authorities, no other agency is authorised to pass layout plans in the region. All or any plan that has been approved by the Zilla Panchayat for mass or group housing projects would stand null and void. Only standalone houses or independent houses can be constructed on ‘Abadi land’ without approval from any development authority”.

Jain added that these projects are illegal. The builder will not be able to get basic approvals for water connection, sewage and electricity. It will mostly be a low rise building, without lifts and other facilities offered in a residential complex. No nationalised bank would finance such projects, as these do not have the necessary approvals from the concerned authority. Some housing finance companies provide housing loans to individuals at higher rates of interest with add-on terms and conditions.

Nehra added that in case the authority declares these projects illegal and plans to demolish them, the buyers may still continue to pay EMI’s to the lender, depending on the agreement between the housing finance company and the buyer.

Experts believe it is better not to invest in such projects, as they do not fall under the limits of any development authority and this hampers future development of the locality in terms of social and physical infrastructure.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/how-safe-is-your-investment-in-abadi-land/78715.html