I am one of the successful allotee of BHS09 independent house by Greater Noida Authority.
BHS09 (Built-up Houses Scheme - 09) is a housing scheme which is amongst the various schemes launched by the Greater Noida Industrial Development Authority (GNIDA) for development of Greater Noida area. This scheme was launched on the 16th of February 2008 whereby applications were invited for "Independent, Expandable, Finished Built-up Houses of Plot Size 120 Sqm. in Sectors 03, Xu II and Xu III for a total of 3,000 houses at a total premium (cost) of Rs. 29.98 lakhs. At that time the cost of one sqm. of land was Rs. 5,900/-. A very large number of people applied for this scheme under the trust that GNIDA, being a Government Organization, will provide affordable and quality houses at less than the price being charged by Private Builders.
Simultaneously, another scheme by the name "XT/01/08 was launched on the 3rd of July for allotment of Residential Plots in Sectors 03 and Xu II for plots of sizes 120 Sqm and 200 Sqm at Rs. 10,500/- per sqm. This opened a pandora box as the final cost of a individually built house (similar to specifications of BHS-09 built-up house) on 120 sqm. of land came to approximately Rs. 22 lakhs alongwith lower Lease Rent, Location Charges, Stamp Duty etc. ; whereby a BHS-09 allottee pays in excess of Rs.36 lakhs (inclusive of interest) and thereafter pays higher Lease Rent, Location Charges, Stamp Duty etc. Simultaneously GNIDA provided Simultaneously, another scheme by the name "XT/01/08 was launched on the 3rd of July for allotment of Residential Plots in Sectors 03 and Xu II for plots of sizes 120 Sqm and 200 Sqm at Rs. 10,500/- per sqm. This opened a pandora box as the final cost of a individually built house (similar to specifications of BHS-09 built-up house) on 120 sqm. of land came to approximately Rs. 22 lakhs alongwith lower Lease Rent, Location Charges, Stamp Duty etc. ; whereby a BHS-09 allottee pays in excess of Rs.36 lakhs (inclusive of interest) and thereafter pays higher Lease Rent, Location Charges, Stamp Duty etc. Simultaneously GNIDA provided relief to Private Builders, who in turn reduced the prices of their houses/apartments for sale.
Under these circumstances, all allottees of BHS-09 stood to lose in excess of Rs. 16 lakhs, with no possibility of recovery. This is because even if the real estate market recovers, the base price will be commanded by the cheapest house on sale, which will definitely be the Privately Built Houses of allottees of XT/01/08 Scheme.
Built- up Housing Scheme 09 (BHS-09)
– by Greater Noida Industrial Development Authority (GNIDA).
The BHS-09 scheme is a scandalous, deceptive and biased housing scheme launched by GNIDA under which a total of 3000 built-up houses are being built in Sectors 03, Xu-II and Xu-III. While initially the general public could not see through the guise of GNIDA, now a large number of allottees are seeing through the guise and coming together to put up a united front against this public fraud by a Government organization. Below are the salient points that expose the massive duping of General Public by an organization of a Government that was elected by that very General Public. A Government which, while taking up office, had taken up an oath to safeguard the interests of the General Public that elected it into office.
1. GNIDA forcefully acquired land from farmers, against their wishes, and paid them a paltry sum of Rs. 406.00 per square meter that was fixed in 2006. When the farmers protested, five of them were shot dead and all public leaders supportive of the farmers’ cause were prevented from coming to the site of agitation i.e. the Office of GNIDA in support of the agitating farmers. Subsequently, in some cases, the compensation amount was raised to Rs. 850.00 per sq. meter.
2. A part of this land, which was acquired at a maximum cost of Rs. 850.00 per meter, was then sold to general public at Rs. 10,500.00 per square meter. Even if the open areas comprising roads, streets, parks, public utilities etc. may comprise 60% of the total area, there is a profit of at least 500% on the land only. One should not forget that the 60% open area remains the property of GNIDA on which it will be charging taxes, fees, charges and in all probability selling portions at huge margins for commercial use to private players. All this while it has already recovered the acquisition cost, with a huge profit of 469%, from the allottees themselves. As technically only the plot area is sold to the allottees and the others areas out of the acquired land remains the property of GNIDA, on each square meter of land GNIDA makes a profit of at least Rs. 8,000.00 (10,500 – 850 – max. development charges @ Rs.1,630.00 per sqm.). Hence total profit for GNIDA from selling 3000 houses, each on 120 sq.m. of land is Rs. 288,00,00 ,000.00 (Rupees Two Hundred and Eighty Eight Crores).
3. GNIDA opened the BHS-09 Scheme on 16 Feb 2008 with the closure date of 08 March 2008. The registration money per application was kept at Rupees Three Lakhs per applicant. Considering a minimum 1:100 ratio between plots available and applicants, there must have been at least 3,00,000 applications amounting to a receipt of Rs. 90,00,00,00,000.00 (Rupees 9,000 Crores). This money was retained by GNIDA for about 4 months thereby earning an interest of Rs. 3,30,00,00,000.00 (Rupees 330 Crores).
4. Considering that all the forms sold were used for applications, at least 3,00,000 forms were sold @ Rs.1,100/- each, earning GNIDA another Rs.33,00,00,000.00 (Rupees Thirty Three Crores) as the sale proceed of forms. The cost of form printing would not have been more than a few Lakhs only.
5. Thereafter, it returned the registration money of unsuccessful applicants, retaining the money of successful applicants amounting to Rs.90,00,00,000.00 (Rupees Ninety Crores). This money was then retained for a month till the Allotment Money of Rs. 6,00,000.00 (Rupees Six Lakhs) each was deposited. The continued retention of Rs.90,00,00,000.00 (Rupees Ninety Crores) for a month earned them a further interest of Rs. 82,50,000.000 (Rupees Eighty Two Lakhs and Fifty Thousand).
6. From August 2008 till February 2009 (seven months), as per its own original computation, GNIDA should have retained Registration Money and Allotment Money of 3000 houses under BHS-09 amounting to Rs. 270,00,00,000.00 on which GNIDA earned an interest of Rs. 17,32,50,000.00 (Rupees Seventeen Crores Thirty Two Lakhs and Fifty Thousand).
7. Hence till date, on BHS-09, GNIDA has earned more than Rs.957,15,00,000.00 (Rupees Nine Hundred and Fifty Seven crores and fifteen Lakhs). Considering the Location Percentage of up to 15%, large number of cases where cost of land acquisition was less than Rs. 870.00 per sqm, and other streams of revenue, the net gain of GNIDA, till date, is in excess of Rs. 1,000 Crores only from BHS-09. That too when nothing has been done at site and the land remains in a condition close to what it was when it was forcibly acquired from innocent farmers. Definitely there could be no better business in the world than playing “Government of Uttar Pradesh”.
But, this income is not enough for GNIDA as the greed has crossed all thresholds. Also GNIDA has an unwritten motto of “Treat the General Public as Garbage”, all under the aegis of Government of Uttar Pradesh. This is clear from the below mentioned points.
8. Erroneous and fraudulent interest earnings by GNIDA:
The only payment option provided by default by GNIDA is a “Construction Linked Plan”, cleverly disguised and phrased as a “Four Year Installment Plan with interest”. The pace of progress, the upcoming tender, the prevalent tender terms, building practices etc., all hint that GNIDA will give this tender to a private party of their choice and pay them periodically as the construction progresses. The final payment will be made only after complete hand-over and rectification of the “Snag List”, if any. Even thereafter, an amount of about 5% of total tender cost should be retained for a certain period, which is in line with the building practices prevalent.
As GNIDA must have realized all the money it disbursed against acquired land from the Registration Money itself, it is only the cost of construction that has to be paid to the builder which is always linked to the progress in construction at site. Hence the GNIDA is fleecing General Public (read allottees) by charging not the published cost of house at Rs. 29,98,000.00 but an additional amount of Rs.6,00,000.00 (Rupees Six Lakhs) (approx.) towards interest charges from each allottee. Whether the allottee pays the total cost upfront (after specially requesting GNIDA for a full payment option) and GNIDA earns interest on it, or the allottee chooses the Installment Plan and GNIDA earns interest on it, both ways GNIDA is unethically and deceitfully earning a huge interest component which should not be applicable at first place.
As per prevalent business practices, either there should be a substantial discount on full up-front payment of Rs. 29,98,000.00 or this amount should be charged under “Construction Linked Plan”, whereby a certain percentage becomes chargeable as the construction progresses and the total amount of Rs,. 29,98,000.00 becomes fully paid up just before possession is handed over to the allottee.
9. Excessive Construction Cost:
As per schemes launched around the same time as BHS-09, plots measuring same 120 sq. meters were sold @ Rs. 10,500.00 per sqm. Thereby the cost of a 120 sq. plot comes to Rs. 12,60,000.00, whereas the cost of built-up house is being charged at Rs. 29,98,000.00 (tentative). Hence the cost of construction for a single story house, built on 120 sq. meter plot, is being charged by GNIDA at Rs. 17,38,000.00 (Rupees Seventeen Lakh Thirty Eight Thousand) which is more than double as per the present cost of construction indices.
10. Application of Location Charges on Cost of Construction:
GNIDA is selling both plots and houses of 120 sq. meters and charging location charges on both. Once build, both kind of houses will command similar location premium in the market. But in case of a plot, the location charges imposed are only on the cost of land whereas in case of houses, it is on the entire cost of the house, including the cost of construction. As such, an allottee might have to shell out up to the extent of 15% i.e. Rs.2,60,700.00 just as extra location charges towards cost of construction. This is another example of blatant cheating as cost of construction has nothing to do with location. Neither the builder hired by GNIDA is charging extra for, say, a park facing houses nor GNIDA is spending anything extra for that. Hence why should GNIDA charge the extra money, thereby duping the poor allottee?
11. Installment Amount too high for common person:
The only “Payment Plan” offered by GNIDA (Para A-5.1) is the “Four Year Installment Plan with Interest”, whereby an allottee has to pay around Rs.3,50,000.00 every six months. Hence for such an individual, the equated monthly provisioning comes to a mammoth Rs.58,333.00. Keeping other expenses in mind, the monthly take home salary/income of this person should be more than Rs. 80,000.00 and the gross monthly income (keeping in mind the obvious top Income Tax slab of 30%) around Rs. 1,14,500.00. Obviously a person looking for a 120 sq meter house with two bedrooms does not earns that kind of money.
This only proves that while planning, GNIDA only thought of its Construction Linked Payment to Builder and the huge profit margins. That is why it offered poor allottees only an installment plan that suited GNIDA the most. This way they get a steady flow of revenue and also save on taxes that would have been levied on interest that would have accrued had all the money come up-front. Eventually, GNIDA end up in huge profits at the expense of poor allottees.
12. “As is where is basis??”
While the proposed specifications for built up Houses is provided on page 13 of the brochure, Para C, Section III, Page 8 clearly mentions that “the house will be accepted by the purchaser on “As is where is basis”” which connotes that even if the doors and windows are missing/stolen or the floor is broken or the fittings and fixtures are of poor quality, broken or missing, the purchaser, who has invested his life’s earning into the house, cannot complain or demand anything.
13. Biased terms towards allottees:
In case of any default, delay, excess variation or poor quality construction by GNIDA, they may, at their discretion, return our money without any interest, whereas, if due to any reason (present recession being a major issue) the allottee is not able to live up to his obligation, he shall be fined heavily to the extent of full forfeiture of all the money he has paid GNIDA.
As this is a big issue and the fraudster is a Government Organization, we need to come forward and form a United Front. For putting forward our consolidated voice, we will have to form a Registered BHS-09 Allottees Welfare Association. The action plan should be to collectively communicate with GNIDA under the Welfare Association banner, form pressure on GNIDA from the Political and Media Fronts. In case the desired results are not forthcoming soon, we will have to file a suit in the appropriate court of law. I am personally sure that with all the above frauds and blunders, GNIDA does not have a strong case and will have to give way. A good stand from our side will be to ask for plot instead of built-up house as this will remove most of the deceits and unethical deeds of GNIDA.
I request you to please help me in this regard.