The Noida Authority is planning to challenge an Allahabad high court order that directed it to register flats in Lotus Boulevard Espacia and Lotus 300. The Authority claims that it is unable to execute the registries due to the mounting dues of the builders. The high court had ordered the Authority to register the flats within a month and a half and also initiated an ED investigation against the builders. However, the Authority insists that it cannot leave its dues, as they are public money required for development purposes. They are reviewing the court order and considering filing a review in the Allahabad high court or an appeal in the Supreme Court.
Builders Ordered to Pay Outstanding Dues
The high court not only ordered the registration of the flats but also directed the Enforcement Directorate (ED) to recover the outstanding dues from the builders and hand them over to the Authority. However, the court did not provide guidance on what would happen if the ED fails to recover the dues. The Authority has stated that it will take necessary legal steps to protect its interests and recover the dues owed to them.
Homebuyers Await Registry
There are 168 homebuyers who have been waiting for the registry of flats in Lotus Espacia, which is located in Sector 100. The housing society was developed by a consortium called Cloud 9 Projects, with developers Ashish Gupta and his brother Aditya Gupta owning around 80% of the shares. The buyers have made all their payments and have been waiting for registration for years. They are hopeful that the Authority will comply with the court order and register their flats soon so that they can finally take possession.
Authority Ordered to Recover Dues and Sell Unsold Inventories
The high court also directed the Noida Authority to issue the occupancy certificate (OC) and register the flats in Lotus Espacia within six weeks. Furthermore, the Authority was asked to recover over Rs 87 crore in dues outstanding from the developers through recovery proceedings. If any amount remains to be recovered, the court allowed the Authority to sell the unsold inventories in one of the towers of the project. It is important for the Authority to recover the dues to ensure that the development of the project can continue smoothly.
Awaiting Response from the Authority
The Association of Apartment Owners (AOA) of Lotus Espacia has written to the Noida Authority seeking the registration of flats as per the court order. However, they are yet to receive a reply from the Authority. The homebuyers are eagerly waiting for a response and hope that the Authority will prioritize their needs and register their flats without further delay.
Registry Delayed Due to Developers’ Dues
In Lotus 300, the Authority was directed to issue an occupancy certificate (OC) and execute registries within one month’s time. However, the registry of none of the 336 flats has been executed due to the developers’ outstanding dues. The developers owe the Authority over Rs 160 crore. The Association of Apartment Owners (AOA) of Lotus 300 has been urging the Authority to take a decision in favor of the homebuyers and facilitate the registration of the flats.
Pending Claims Due to Insolvency Proceedings
In a separate case, a consortium of Hacienda Project Private Limited (HPPL), with Pebbles Infosoftech as the lead member, was allotted 17 acres of land in sector 107 for developing the residential project. However, due to insolvency proceedings, there is now a moratorium under the Insolvency and Bankruptcy Code, 2016, which prevents any recovery proceedings against the company by any creditors. The Authority has been instructed to submit their claims before the Insolvency Resolution Professional (IRP). The Noida Authority is facing a challenging situation with conflicting court orders and outstanding dues from builders. It is crucial for the Authority to find a resolution that protects the interests of both the homebuyers and the development of the projects. The outcome of their legal actions, whether in the Allahabad high court or the Supreme Court, will have significant implications for the real estate market in Noida.
