Noida, May 3, 2024 - The Noida Authority has taken legal action by filing a review petition in the Allahabad High Court challenging a previous directive related to the execution of registries for 330 flats in Lotus 300, a residential complex situated in Sector 107.
The move comes after an earlier ruling by an HC bench consisting of justices Mahesh Chandra Tripathi and Prashant Kumar on February 29, directing the Authority to grant an occupancy certificate and complete registries in favor of Lotus 300 homebuyers within a month. The court also mandated an investigation by the Enforcement Directorate into alleged misappropriation of homebuyers’ funds by the builders of Lotus 300.
In its petition, the Authority cited its inability to execute the registry due to outstanding dues owed by the builders, which amounts to Rs 166 crore. The Authority argued that allowing registry execution without settling these dues could set a precedent and lead to substantial losses to the exchequer.
Furthermore, the Authority asserted its position in accordance with established rules and by-laws, highlighting the need for action when a builder or developer defaults on their obligations. The genesis of the dispute traces back to March 2010 when a consortium led by Hacienda Project Private Limited (HPPL) was allotted land in Sector 107 for the development of Lotus 300.
Amidst the legal proceedings, the High Court clarified that the moratorium under the Insolvency and Bankruptcy Code, 2016, applies only to HPPL, the debtor company, leaving the promoters liable for prosecution. The court scrutinized allegations of financial misconduct, stating that the promoters had allegedly collected funds, diverted a significant portion, and defrauded numerous homebuyers across multiple projects.
In response to the Authority's actions, Bhuwan Chaturvedi, the AOA president of Lotus 300, expressed disappointment, emphasizing that residents have been awaiting occupancy certificates and registry execution since February. Chaturvedi urged the High Court to intervene and ensure compliance with its previous directives, particularly regarding the recovery of funds by the Enforcement Directorate.
Meanwhile, Vidur Bhardwaj, one of the former promoters, has filed a separate review petition seeking relief from the HC's directive on the Enforcement Directorate investigation. Bhardwaj maintained that all flats in the project have been delivered, and denied allegations of fund diversion, asserting that the promoters had personally infused funds to complete the project.
As the legal battle ensues, stakeholders await further developments in this ongoing saga of regulatory scrutiny and homeowner rights in Noida.
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