The Noida Authority has lodged a review petition in the Allahabad High Court, challenging its prior directive regarding the registration of 330 flats in Lotus 300, a condominium in Sector 107. On February 29, a bench comprising Justices Mahesh Chandra Tripathi and Prashant Kumar instructed the Authority to issue an occupancy certificate and complete the registries for Lotus 300’s homebuyers within a month. The court also instructed the Enforcement Directorate to launch an investigation into the builders of Lotus 300 for allegedly misappropriating funds from homebuyers.
In its petition, the Authority cited its inability to carry out the registry due to outstanding dues owed by the builders. It argued that permitting registries to proceed without settling the builders’ Rs 166 crore debt could set a precedent and lead to significant losses to the exchequer. The Authority contended that it should be allowed to take action in accordance with established rules and by-laws in cases where a builder or developer defaults on their obligations.
In March 2010, a consortium led by Hacienda Project Private Limited (HPPL), with Pebbles Infosoftech as the lead member, was granted 17 acres of land in Sector 107 to develop the residential project. At the time of the lease deed, Nirmal Singh, Surpreet Singh Suri, and Vidur Bhardwaj served as directors of HPPL.
In 2022, IndusInd Bank filed an application before the NCLT, leading to the initiation of corporate insolvency resolution proceedings. An insolvency resolution professional (IRP) was subsequently appointed.
The HC’s order stated that due to HPPL’s insolvency proceedings, there was a moratorium under the Insolvency and Bankruptcy Code, 2016, preventing creditors from initiating proceedings to recover their dues. The court directed the Authority to submit its claims to the IRP.
The HC clarified that the moratorium under the IB Code applied only to the debtor company, HPPL, making the promoters liable to prosecution. The court noted that the promoters had deceived homebuyers by collecting Rs 636 crore, siphoning off nearly Rs 190 crore, and selling land to a third party while keeping the proceeds of Rs 236 crore. It also mentioned that the developers had defrauded numerous other homebuyers in various projects.
Bhuwan Chaturvedi, AOA president of Lotus 300, stated that since February, they had reminded the Noida Authority four times to issue the occupancy certificate and begin flat registrations, as per the HC order. Chaturvedi expressed frustration over the Authority filing a review application and emphasized that residents had already paid the required amount. He questioned why they were being made to wait for the registry, stressing that the Authority should have at least issued the occupancy certificate.
Former promoter Vidur Bhardwaj has also filed a review petition, seeking relief from the HC’s directive for an ED investigation. He claimed that all flats had been delivered and no homebuyers were left in the lurch, thus arguing against the need for an ED investigation. He also stated that as an IRP had been appointed, the remaining dues should be presented before him for recovery. Bhardwaj denied any diversion of funds, asserting that the promoters had used personal funds to complete the project.
Read more: Three GDA Supervisors Suspended for Involvement in Ghaziabad Illegal Construction Activities
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