The Allahabad High Court has issued a contempt notice to the CEO of the Noida Authority for failing to register approximately 300 flats in the Lotus 300 project located in Sector 107, Noida. The court's decision follows the Authority's unsuccessful petition to review a prior order mandating the registration of the flats without requiring the developer to settle dues amounting to Rs 166 crore.
In its review petition, the Noida Authority contended that the registration could not proceed because the developer had not paid the outstanding amount. However, on February 29, a division bench comprising Justices Mahesh Chandra Tripathi and Prashant Kumar directed the Authority to execute the registries for the 300 occupied flats within a month. The bench also ordered an investigation by the Enforcement Directorate (ED) into allegations that the developers defrauded homebuyers, the Authority, and banks by diverting funds for personal gain.
On May 16, the division bench dismissed the Authority’s appeal for a review of the earlier order. "It is clearly reflected from the order that each and every facet of the matter that has been raised has been examined by this court, and in the garb of a review application, rehearing cannot be permitted. Consequently, in the facts of the case, the review application has no merit and the same is dismissed, accordingly," the court stated.
A week later, on May 23, the same bench rejected another petition by former promoter Vidhur Bhardwaj, who sought a review of the February order directing an ED probe against the developers. The court emphasized that a review is permissible only when there is "an error apparent on the face of the record," which must be grave, palpable, and apparent without extensive reasoning or reappraisal of the entire evidence.
On May 27, a single bench of Justice Rohit Ranjan Agarwal upheld a plea by Lotus homebuyers to issue a contempt notice against the Noida Authority for failing to execute the registries within the stipulated time. Consequently, the high court issued a contempt notice against Lokesh M, the CEO of Noida Authority.
The Lotus 300 project comprises 330 flats, with 300 currently occupied. Bhuwan Chaturvedi, president of the Apartment Owners Association (AOA), accused the Authority of "gross contempt" for not registering the flats despite multiple reminders. Since 2022, the project has been managed by an Interim Resolution Professional (IRP) after the National Company Law Tribunal admitted an application by IndusInd Bank and initiated corporate insolvency resolution proceedings. The court's February 29 order had directed the Authority to present its claims before the IRP while continuing with the registries.
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