The Greater Noida authority has cancelled the allotment of a realty firm- Value Infrabuild India Private Limited_that failed to clear dues of ₹17 crore. This has shattered the dreams of 176 flat buyers and led to their investment getting stuck.
Homebuyers said that many realtors are turning defaulters in Greater Noida but there is no effective authority that can address issues faced by the investors.
The authority cancelled the 3.5 acre plot of Value Infrabuild India Private Limited on January 31 because it has only deposited ₹5.25 crore amount. The authority will forfeit ₹ 4.25 crore and refund only ₹1 crore to homebuyers. Homebuyers will have to fight a court battle to get their refund as the authority is unable to help them.
“Value Infrabuild India Private Limited defaulted on payment of ₹17 crore. They did not reply to repeated notices sent by the authority. Therefore, we had to cancel the plot allotment. Homebuyers will have to approach consumer court to get their refund of investment because they paid money to the builder,” said Deepak Agarwal, chief executive officer of the Greater Noida authority.
The authority’s planning department conducted a survey of the land and found that the builder had not constructed any project at the site for many years. The land was allotted to the builder in 2008-09.
As per rule, a builder has to get the building layout map approved within six months from the land allotment date and the construction should start within 12 months.
“Had the Greater Noida authority cautioned homebuyers, the builder would not have been able to cheat these 176 homebuyers. The authority should be vigilant and think of buyers’ issues too,” said Anu Khan, founder of Noida Extension Flat Owner’s Main Association (NEFOMA).
The authority had in 2008-09 allotted the plot to a group of five persons, who in 2012 sold the plot to one PK Singh, who proposed to build a group housing under the realty firm _ Value Infrabuild India Private Limited. Telephone numbers of PK Singh and Value Infrabuild India Private Limited are switched off. The website of the company that has office in sector 63, Noida is also non-functional.
“We had sold the company for R11 crore to PK Singh, who launched Value Infrabuild India Private Limited. We had refunded money collected from 60 homebuyers in 2012. Now Singh will refund to these 176 investors as he collected the money,” said Rahul Chamola, one of the five partners, who sold the company.