Greater Noida authority begins process to recover ₹203.44 crore from Omaxe

The Greater Noida authority Wednesday said it has started the process of recovering ₹203.44 crore dues from Omaxe Limited after the realty firm defaulted on payments

Published on: Feb 5, 2020, 19:07:08 IST

By Vinod Rajput, GREATER NOIDA

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The Greater Noida authority Wednesday said it has started the process of recovering ₹203.44 crore dues from Omaxe Limited after the realty firm defaulted on payments for the past more than one year.

The authority, on November 2, 2018, had issued a recovery notice to Omaxe Limited after the firm failed to pay dues amounting to ₹166.10 crore in NRI City, located in Sector Omega 2.

After recovery notices were issued by the authority, Omaxe Limited filed a writ petition before the Allahabad high court seeking relief from the notice.

The high court asked principal secretary (industrial and infrastructure development) to decide on the matter. Subsequently, the principal secretary allowed the Greater Noida authority to recover dues from Omaxe Limited.

“As Omaxe Limited failed to get any relief from the Allahabad high court and the UP government’s infrastructure and industrial department, we have started the process to recover our dues. The Omaxe has been issued recovery notices again so that the builder gets a chance to clear the dues,” Narendra Bhooshan, chief executive officer, the Greater Noida authority, said.

The authority officials said now, the dues have increased because of accumulated interest on repeated defaults.

“The Omaxe has to pay ₹178.37 crore in land dues and ₹25.07 crore as lease rent dues. In total, the authority needs to recover ₹203.44 crore from Omaxe Limited,” Bhooshan said.

The Omaxe Limited had got the land for NRI City in sector Omega 2 on an instalment basis after paying 10% of total land cost. The Omaxe Limited was supposed to pay the remaining cost in instalments, but the company started defaulting on the payment.

“The process was halted as the matter reached the court and then the UP government. But now, since the UP government has asked us to start the recovery process, we have issued the recovery notice again,” Bhooshan said.

Omaxe Limited spokesperson said, “We have started arranging the funds and we will pay the dues soon.”

ABOUT THE AUTHOR
Vinod Rajput
Vinod Rajput writes on environment, infrastructure, real estate and government policies in Noida and Greater Noida. He has reported on environment and infrastructure in Delhi, Gurgaon and Panchkula in the past.Read More

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