NCLT appointee misusing funds, allege Lotus Panache buyers

People who bought flats in Noida sector 110’s Lotus Panache housing project have accused the National Company Law Tribunal (NCLT) appointed resolution professional of misusing their money and giving preferential treatment to certain homebuyers

People who bought flats in Noida sector 110’s Lotus Panache housing project have accused the National Company Law Tribunal (NCLT) appointed resolution professional of misusing their money and giving preferential treatment to certain homebuyers. Last week, they had approached Noida Authority with their grievance.

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While the resolution professional denied any wrongdoing, the authority said they would look into the matter.

Granite Gate Properties Limited had launched the project in 2010 along with another project, Lotus Boulevard in the sector 100. While Panache was planned to have 30 residential towers with around 3,000 total flats, Boulevard was supposed to have 29 towers with around 3,100 total flats. The builders had promised delivery by 2014 but till date on nine towers in Panache and 26 towers in Boulevard were delivered.

In 2019, the homebuyers filed a case with the national company law tribunal after the company failed to deliver. The tribunal appointed a resolution professional to take control of the housing project, and proceeded with corporate insolvency proceedings as per the Indian bankruptcy code-2016 (IBC).

“As per the IBC, no new developer could take over the projects. The resolution professional is misusing the funds collected from us and not delivering the units. He using funds to finish units of buyers who are yet to pay total dues. Those who paid 95% of the cost are still waiting for work to start,” said Sanjay Kumar who had booked a 3BHK flat in the project in 2013 for ₹95 lakh. “There has no justice from the NCLT. Therefore, we requested the Noida Authority to step in.”

“If the Noida Authority fails to get us a solution, then we will approach the Allahabad high court,” said Satish Verma, another buyer.

The resolution professional Chandra Prakash denied any wrongdoing and said that they require homebuyers’ funds and consent to complete the projects.

“We working to complete seven towers in Panache where 70% homebuyers had given their consent. We are using the funds democratically and doing our job. At least 100 units (of Panache) will be delivered by February-end and the remaining units in seven towers will be delivered as per schedule and availability of funds. In Boulevard only a few flats are to be finished,” said Prakash.

Noida authority officer on special duty Rajesh Kumar said, “We will not let the registry to be executed in these two projects until the matter is settled by the NCLT. The authority will look into the matter as per the rules.”