Three directors held in Greater Noida over ₹77.66 cr RERA dues

GREATER NOIDA: Three directors associated with two firms were arrested on Wednesday by a joint team of police and revenue department over ₹77

GREATER NOIDA: Three directors associated with two firms were arrested on Wednesday by a joint team of police and revenue department over ₹77.66 crore in unpaid dues, including interest, officials said on Thursday.

The directors were produced before Dadri sub-divisional magistrate (SDM) Arun Kumar, who ordered that they be held in judicial custody for up to 15 days, the district administration said. (HT Archive)

The directors were produced before Dadri sub-divisional magistrate (SDM) Arun Kumar, who ordered that they be held in judicial custody for up to 15 days, the district administration said.

The action followed recovery certificates issued by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA). The companies owed ₹776,680,434, which was being recovered as land revenue arrears, said officials.

The administration said notices had been served to the companies, giving them an opportunity to pay the dues or provide adequate security. However, they did neither within the stipulated period.

“Recovery of outstanding dues against recovery certificates issued by the RERA and other departments is being treated as a top priority. Action against persistent defaulters can include attachment and auction of bank accounts and movable and immovable properties,” the SDM said.

Officials said it’s a civil revenue-recovery detention under Section 171 of the Uttar Pradesh Revenue Code, 2006, which permits the arrest and detention of a defaulter for up to 15 days for recovery of outstanding dues.

Meanwhile, UPRERA chairman Sanjay Bhoosreddy said, “UP RERA has already discharged its responsibility by adjudicating the cases in favour of the homebuyers and issuing recovery certificates against the company for the outstanding dues. However, the matter subsequently went before the National Company Law Tribunal (NCLT) and the Supreme Court, and proceedings are currently subject to judicial consideration. The company’s parent unit in Lucknow is also under the NCLT’s purview, while the status of the other units has been dealt with separately.”

“Given that the matter is now before the courts, it would not be appropriate for me to comment further at this stage,” he added.