Land handover delayed, Allahabad high court allows two realtors ‘zero period’ benefits - Hindustan Times
close_game
close_game

Land handover delayed, Allahabad high court allows two realtors ‘zero period’ benefits

By, Greater Noida
Nov 24, 2023 06:54 AM IST

They had sought an interest waiver on the grounds that the Greater Noida authority and the Yamuna Expressway authority failed to hand over possession of housing land to them, thus delaying construction and handover to homebuyers

The Allahabad high court has granted two realtors, in separate petitions, the “zero period” -- period for which no interest rate will be calculated -- that they had sought on the grounds that Greater Noida authority and the Yamuna Expressway authority failed to hand over possession of housing land to them, thus delaying construction and handover to homebuyers.

HT Image
HT Image

The matter pertains to allotted to Rudra Buildwell -- in Sector 1 and another in Sector 16 in Greater Noida West -- in 2011.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

The Greater Noida authority allotted 81,800 square metres (sqm) of land to a consortium led by Subhkamna Buildtech on August 18, 2010, of which Rudra Buildwell was a part. In March 2011, the land was sub divided and the Rudra Group got 33,538 sqm land.

A lease deed dated was executed the next month after Rudra Buildwell paid 10% of the total premium amount of 39 crore. The remaining 90% of the land cost was to be paid in 16 half yearly instalments. The lease deed further provided for a moratorium of 24 months from the date of allotment. But the authority failed to give possession of 13,500 sqm, out of 33,538 sqm, owing to a dispute with farmers.

In August 2019, principal secretary of the industrial development department directed the Greater Noida authority to take a fresh decision holding that “part possession” should be considered equivalent to “no possession” of land.

The developer filed a petition before the high court in September 2019 demanding zero period benefit for the duration of the delay in handing over the total allotted land.

In January 2020, the high court directed Greater Noida to decide on the issue expeditiously. However, in July 2020, the authority rejected the realtor’s all demand for zero period prompting the developer to approach the high court in 2021 again.

In the case of the second housing land in Sector 16, for where the court gave a similar order, the petitioner was allotted 43,115 sqm of land in 2012. The developer stated that no actual physical possession was handed over, and there existed two mazars (mausoleums) on the plot that hindered construction.

Rudra Buildwell Projects Private Limited filed a petition regarding this in 2022, again seeking zero period for the duration for the delay.

“Accordingly, the writ petition stands allowed...The Respondent No. 2 (authority) is directed to grant benefit of zero period to the petitioner from the date of allotment till actual possession i.e. April, 2023 and not charge the lease rent and interest accruing thereon in respect of the area of the plot, the possession of which has not been handed over at the time of allotment,” said the order delivered by justice Ashutosh Srivastava and chief justice Pritinker Diwaker, on November 16.

The court also directed the Greater Noida authority to revalidate the map in accordance with law.

Greater Noida authority CEO Ravikumar said they will comment on the matter only after perusing the HC order.

On the second plea filed in 2021 by realty firm Silverline Furnishing, the bench of chief justice Pritinker Diwaker and justice Ashutosh Srivastava set aside the Yamuna Expressway Industrial Development Authority (Yeida)’s two decisions -- one cancelling allotment and the other to recover interest as well as lease rent.

The realtor, who was allotted 100 acres in Sector 18, demanded a zero period on the grounds that the authority failed to give possession to them owing to farmers’ dispute and therefore it cannot force them to pay interest on the land cost dues nor cancel the allotment.

“In view of the above, both the writ petitions are allowed. The order dated 11.11.2020 impugned in Writ Petition No.23888 of 2021 demanding interest and penal interest on the premium and lease rent during the period physical possession of the leased land has not been given to the petitioners set aside. The order dated 27.07.2022 whereby cancelling the lease deed and allotment of the land in favour of the petitioner is also set aside. The respondent YEIDA is directed to handover actual physical possession of the lease land to the petitioner within three months of service of certified copy of the order of this court upon it,” said the order .

Yeida CEO Arun Vir Singh also refused comment until a copy of the order is received.

SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    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.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Wednesday, April 24, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On