Noida authority in high court to delay registry at Lotus 300 till dues are paid

Noida authority has said that it cannot allow registries without the realtor clearing financial dues. This is expected to further delay the handover of flats

The Noida authority has filed a review petition before the Allahabad high court challenging its earlier order that directed that registry of apartments in Lotus 300 housing project in Sector 107, Noida, be executed without further delay.

The authority has expressed its inability to issue permission for registry as land cost dues amounting to ₹166 crore is still pending from the realtor against Lotus 300 (above) in Sector 107, Noida. (HT Photo)

The Noida authority has contended that it cannot allow registries without the realtor clearing financial dues. The development is going to further delay the handover of flats to buyers, who have been waiting since a long time to get possession.

The Allahabad High Court's directions

In response to a writ by homebuyers, the Allahabad high court had on February 29, 2024, directed the Noida authority to execute the registry in Lotus 300 housing project without seeking a no-dues certificate from the realtor.

The HC had given a month for execution of registries and also directed the enforcement directorate to open investigations into the builders of Lotus 300 over alleged misappropriation of funds. The society, which comprises 330 flats, is currently occupied by about 300 residents.

Homebuyers' take

“We are made to suffer for no fault of ours. Homebuyers have already paid their dues to the realtor. We have written to the Noida authority requesting that they give us permission to execute registry without waiting for the realtor to clear land dues. They should recover their dues from the developer and allow registries,” said Lotus 300 apartment owners association president Bhuvan Chaturvedi.

“Also, we request that they at least issue us occupancy certificates because in the absence of occupancy certificates, we are facing a lot of civic issues,” said Chaturvedi.

The authority has expressed its inability to issue permission for registry as land cost dues amounting to ₹166 crore is still pending from the realtor against this project.

“The authority is of the view that allowing registries without recovering the dues will send across a wrong message and also set a precedent, causing a huge financial loss to the exchequer. The authority further said as the project is currently under insolvency proceedings and an interim resolution professional (IRP) has been appointed by the National Company Law Tribunal, the IRP should be treated as the realtor. To protect our money, we filed a review plea,” said a Noida authority official, asking not to be named.

Noida authority CEO Lokesh M said, “I don’t know about the review filing. The legal department is working on it.”

The high court, in its order issued in February, observed that the promoters had conned homebuyers by launching the project and collecting ₹636 crore, and syphoning off almost ₹190 crore besides selling a portion of land to a third company and pocketing the sale proceeds of ₹236 crore. The court also noted that the developers had defrauded hundreds of other homebuyers in various other projects.

Vidhur Bhardwaj, one of the realtors,submitted that they have already delivered the flats and therefore there is no ground for an ED investigation. He also stated that as an IRP has been appointed, the remaining dues should be presented before the IRP for recovery.

He denied that there was any diversion of funds, while adding that the promoters infused funds separately from their own pockets. When contacted on Wednesday he refused comment on the latest development.