New developer takes over stalled 3C Lotus City project near Noida airport
The national company law tribunal has directed the new developer to pay the farmers’ land compensation and complete the project
The national company law tribunal (NCLT) granted ACE Infracity Developers Private Limited permission to take over real estate firm 3C’s stalled housing project called 3C Lotus City in sector 22A near Noida airport at Jewar along the Yamuna Expressway. The homebuyers have been fighting the case for the last two years and hope to take possession of the flats, as the new developer is expected to begin construction at the site.
The 3C Lotus City project was launched in 2012 on 100 acres. The realty firm promised buyers they would possess the plots by the end of 2024. The firm had carved out 150, 250 and 500 square metres plots on 50 acres of land, with the remaining 50 to be developed later. However, farmers refused to let the developer take possession of the land, demanding 64% increased land compensation, and they continued to engage in agricultural activities.
NCLT has now directed the new developer to pay the farmers’ land compensation and complete the project. Following this order, farmers are expected to receive ₹80 crore in increased land compensation. “The IA-3385/2020 is allowed, and the resolution plan of ₹140,39,27,000 (One Hundred Forty Crore Thirty-Nine Lakh and Twenty-Seven Thousand Only) is approved. The resolution plan shall form part of this order. Accordingly, IA-3385/2020 stands disposed of as it becomes infructuous,” said the NCLT order, which was delivered by a bench of Atul Chaturvedi, member technical, and Bachu Venkat Balram Das, member judicial. The NCLT order was issued on June 13 and published on Monday.
The order said, “The main company petition, i.e., IB-432(ND)/2019 stands disposed of accordingly. The resolution plan is binding on the corporate debtor and other stakeholders involved so that the revival of the corporate debtor company shall come into force immediately. The moratorium imposed under section 14 of the code shall cease to have effect from the date of this order. The resolution professional shall submit the records collected during the commencement of the proceedings to the Insolvency and Bankruptcy Board of India (IBBI) for their record...”
The aggrieved buyers approached NCLT for justice in 2019, but nothing happened. Finally, on April 17, 2023, the Supreme Court directed NCLT to hear and decide this case within a reasonable time frame.
“We have been suffering for the past nine years, and the developer has not given us possession of the plots for various reasons. We now hope that after the NCLT order, we will get justice,” said Amit Tyagi, the homebuyer spearheading the legal battle.
NCLT has directed the resolution professional to turn over the records and other required documents to the new developer, and it has also formed a monitoring committee to ensure that its order is followed.
The committee is made up of two buyers, two representatives of the new developer and a resolution professional.
Piyush Singh, the founding partner of PSP Legal, who represented the homebuyers before the Supreme Court and NCLT, said that this decision would not only provide relief to Lotus City project homebuyers but will also accelerate the insolvency resolution process for other real estate companies whose resolution plans are stalled.
“The NCLT decision will also pave the way for the resolution of cases where land has been cancelled by authorities such as Noida, Greater Noida and Yeida (Yamuna Expressway industrial development authority) for non-payment of dues. The monitoring committee will now assist in the order’s implementation,” said Singh.