Noida Authority Plans to Challenge Allahabad High Court Order on Flat Registrations…..
The Noida Authority is considering challenging an order from the Allahabad High Court directing it to register flats in Lotus Boulevard Espacia and Lotus 300. The Authority cited its inability to execute registries due to the builders’ outstanding dues.
In separate rulings on February 29, the high court bench of Justices Mahesh Chandra Tripathi and Prashant Kumar ordered the Authority to register flats in these projects within a month and a half and directed an ED investigation against the builders.
Noida Authority CEO Lokesh M stated, “We are reviewing the court order and planning to either file a review in the Allahabad High Court or an appeal in the Supreme Court. The Authority’s view is that it cannot leave its dues, as it is public money required for development purposes.”
An officer from the Authority’s legal department noted that while the HC had directed the ED to recover the amount from the developers and hand it over to the Authority, it was silent on what would happen if the ED failed to recover the dues.
There are 168 homebuyers awaiting flat registries in Lotus Espacia. The housing society in Sector 100 was developed by a consortium, Cloud 9 Projects, with developers Ashish Gupta and his brother Aditya Gupta owning about 80% of the shares, and Nirmal Singh and Supreet Singh Suri of Three C company owning the remaining 20%.
Following the court’s decision, the AOA of Lotus Espacia requested the Noida Authority to register flats. AOA president Sudha Sharma stated they were yet to receive any reply.
Sangita Singh, a former AOA president waiting for the registry of her flat, expressed confusion over the Authority’s basis for challenging the HC order, noting that homebuyers had made all payments and had been waiting for registration for years.
In Lotus 300, the Authority was directed to issue an occupancy certificate (OC) and execute registries within a month. The condominium has 336 flats, of which nearly 250 have been handed over. The developers owe over Rs 160 crore to the Authority.
The HC order stated that since HPPL was facing insolvency proceedings, there was a moratorium under the Insolvency and Bankruptcy Code, 2016, and no proceedings could be initiated against the company by any creditors to recover their dues. The HC asked the Authority to submit its claims before the IRP. The HC clarified that the effect of the moratorium was confined only to the debtor company, HPPL, and the promoters would be liable to be prosecuted.
Bhuwan Chaturvedi, AOA president of Lotus 300, stated that none of the 336 flat registries had been executed due to the developer’s dues. “We have written to the Authority and the state government. We met the Authority CEO and urged him to decide in favor of the homebuyers. We are planning to meet the Chief Minister as well.”
Read more: RERA Imposes Rs 50 Lakh Fine on Coral Realtors for Project Registration Violation
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