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Ghaziabad: Allahabad high court gives relief to builder from sealing drive

The developers had approached the high court and challenged the RC issued in connection with the recovery of money that was due the Ghaziabad Development Authority.

noida Updated: Dec 06, 2017 13:01 IST
Peeyush Khandelwal
Peeyush Khandelwal
Hindustan Times, Ghaziabad
Ghaziabad development authority,Magus Consortium Orchid Avenue Pvt Ltd,GDA vice-chairperson Ritu Maheshwari
In October, GDA sent a list of 16 major defaulters to the administration and sought issuance of RCs to recover nearly Rs 357 crore.(HT File Photo)

The Ghaziabad district administration and the development authority have been directed by the Allahabad high court to not take coercive action against a builder against whom a recovery certificate (RC) was issued earlier.

The developers had approached the high court and challenged the RC issued in connection with the recovery of money that was due the Ghaziabad development authority (GDA).

The GDA officials said the developer purchased property and defaulted on payments for the past several years and hence an RC was issued.

In October, GDA sent a list of 16 major defaulters to the administration and sought issuance of RCs to recover nearly Rs 357 crore. Officials said so far, 69 RCs have been issued against different firms and individuals.

The petitioner contended that the real estate sector is in a recession and also point out that several concessions have been extended by other development authorities to builders.

The high court asked the district administration and the GDA to file a counter affidavit within one month.

The court also asked the developer firm, M/S Magus Consortium Orchid Avenue Pvt Ltd, to deposit a sum of Rs 2 crore with the GDA on or before December 20, 2017. A sum of Rs 1.5 crore is to be deposited before January 20, 2018 and another Rs 1.5 crore before February 20, 2018.

“... looking at the peculiar facts of the case, respondents are directed not to take any coercive action against the petitioners...,” the court said in its interim order on November 29.

Manoj Sharma, director of Magus Consortium, said their site was also sealed in Indirapuram. “The authority had taken a plea that the height of the base was more. We had said that since the construction is already going on, the exact height cannot be determined. But they sealed our site in 2014 too citing the same reason. The matter then was taken to the court. In connection with the RC, we believe the amount computed is more than what it is as per our calculation,” he said.

“We will soon deposit the amount as directed by the high court but the site should also be desealed,” he said.

Likewise, the GDA had earlier sealed the sales office of Habitat Centre in Indirapuram.

“Our sales office and project construction were sealed by the GDA. We paid some amount and did not move court. The desealing has been done,” said Yudhvir Singh, company’s operations head.

GDA vice-chairperson Ritu Maheshwari said the department has filed caveats in all cases and developers must pay the pending amount. “Only one instance is pending at the high court. For the rest, we have filed caveats. The Habitat Centre was also sealed earlier and they paid some amount before it was desealed. Likewise, we have also sealed a mall. It is time that the pending amount is paid back, else we will act as per norms,” she said.

First Published: Dec 06, 2017 13:01 IST