Noida files complaints to economic offences wing against realty firms

The authority alleged two firms have resorted to financial irregularities and misuse of funds, which have caused sufferings to homebuyers and left the authority struggling to recover land cost dues

The Noida authority said it has filed complaints to the economic offences wing (EOW), Delhi, against two developers—Shubhkamna Buildtech and IVR Prime Developers — and sought a probe into their accounts to make out any economic offences that they have commissioned in the past.

The authority has also urged Gautam Budh Nagar district administration to issue a recovery notice of ₹57.65 crore against Sethi Buildwell for non-payment of dues for its housing project in Sector 76. (Sunil Ghosh/HT Photo)

The authority alleged that the two firms have resorted to financial irregularities and misuse of funds, which have caused sufferings to homebuyers and left the authority struggling to recover their land cost dues, said officials.

The authority has also urged Gautam Budh Nagar district administration to issue a recovery notice of ₹57.65 crore against Sethi Buildwell for non-payment of dues for its housing project in Sector 76, said officials.

“We have recommended an EOW probe and also issuance of recovery notice against one of the realty firms as per the rules. Our motive is to deliver justice to homebuyers and also recover dues,” said Lokesh M, chief executive officer, Noida authority.

The authority had on March 23, 2010, allotted a 22,565.77 square metre plot for the group housing project to Shubhkamna Buildtech for a project named Shubhkamna Tech Homes. The authority offered possession of land on August 20, 2010, after a lease agreement was executed in July 2010. The project offered 692 apartments and ₹165 crore in land cost dues is pending against this project. Despite repeated notices, the developer failed to clear the dues or complete the project.

According to the authority, project promoters Mukesh Khurana, Diwakar Sharma, Kamal Singh Rothan, Harish Kumar, and Piyush Tiwari created third-party rights by selling flats and misused the funds without depositing them with the authority.

This has not only left homebuyers in the lurch but has also resulted in financial losses to the authority. As a result, a complaint was filed with the EOW on Tuesday, seeking an investigation into the discrepancies.

The authority had on April 18, 2007, allotted 130,000 sqm of land to IVR Prime Developers (formerly IVRCL Infrastructure). The authority executed the lease on April 19, 2012, and gave possession.

The authority issued repeated notices asking the firms to clear dues and complete the project but nothing happened on the ground.

The authority filed a formal complaint with the EOW, Delhi, on January 27, 2025, demanding an inquiry into the financial irregularities.

Apart from that, the authority has urged the administration to issue recovery notices against Sethi Buildwell Private Limited that had bought 20,000 sqm of land on June 9, 2010, to develop the Sethi Max Royal project in Sector 76.

The authority said that of the 726 sanctioned flats, 455 are registered and a total of 281 are yet to be registered.

The developer owes ₹57.65 crore in dues and even after repeated notices, the firm failed to clear dues.

On Tuesday, the Noida authority requested the Gautam Budh Nagar collector to recover the outstanding amount as land revenue. Officials emphasised that such actions are crucial to safeguarding the interests of homebuyers and ensuring adherence to financial and regulatory obligations.

All three developers could not be reached for comments despite repeated attempts.