To put pressure on real estate group, bank slaps eviction notice on homebuyers, later withdraws it
The developer, Gardenia India Limited, had obtained a loan of ₹78.45 crore for the project at an annual rate of interest of 16% from the bank, on December 31, 2015 . Over time, the group’s liability reached ₹100 crore.Updated: Aug 14, 2019 21:45 IST
The Union Bank of India (UBI) on Wednesday withdrew eviction notices served on eight families who bought flats in Gardenia Gateway high-rise in Noida Sector 75 after the developer defaulted on a loan.
The bank had earlier this month sent the notices in order to recover the ₹78-crore loan the real estate group has taken from it.
The bank withdrew the eviction notice after the residents moved the Uttar Pradesh real estate regulatory authority (UP-RERA), which called the move illegal.
The bank said it was a “pressure” tactic to recover the money.
“We had issued eviction notices to eight flat buyers to put pressure on the builder. And now we have withdrawn the notice with immediate effect. Our process of recovery of the dues is underway from the builder, who took the loan,” said Diwakar Chaudhary, debt recovery officer with Union Bank of India, Connaught Place, New Delhi.
The developer, Gardenia India Limited, had obtained a loan of ₹78.45 crore for the project at an annual rate of interest of 16% from the bank, on December 31, 2015 . Over time, the group’s liability reached ₹100 crore.
On August 5, residents said, the bank had pasted the notices outside eight flats.
“A team from the bank asked all of us to leave by August 20 as the builder had defaulted on a loan. But after we protested, the bank cancelled the notice,” said BS Lavaniya, president of flat buyers association, which is yet to be registered formally. The project has 1,300 residential units but only 150 families have moved into the flats, which, residents say, lack many basic facilities.
The Gardenia India Limited management said that they are trying to resolve the issue at the earliest.
“The Union Bank of India was wrong to issue eviction notice to the flat buyers. We have resolved the issue as the bank has cancelled the eviction notice. We are settling our loan amount and also trying to resolve the issues with the Noida authority so that the occupancy certificate can be issued to the building and flat buyers can get their flats registered,” said Surendra Deol, additional director of the Gardenia India Limited.
“The bank’s move was illegal. They should not have done that,” said UP-RERA member Balvinder Kumar.
Buyers said that they shifted into the partially completed housing project in 2015 after the builder failed to finish it as per the schedule. This housing project is yet to obtain occupancy certificate (OC) without which the builder cannot offer possession to buyers.
“The Gardenia India Limited could not obtain OC because it defaulted on payment of around ₹50 crore land dues. Without clearing the land dues, the authority cannot issue OC to a housing project,” said a Noida authority official, requesting anonymity.
First Published: Aug 14, 2019 20:02 IST