Noida Authority Disputes financial relief of ₹63 to ET Infra
The Noida Authority is set to appeal to the Uttar Pradesh government to reconsider its decision to grant a financial relief of ₹63 crore to ET Infra Developers Pvt Ltd, the builders of the World Trade Tower in Sector 16. This relief was intended to compensate for delays attributed to a National Green Tribunal (NGT) ban on construction activities within 10 kilometers of the Okhla Bird Sanctuary from 2013 to 2015.
Background of the Project
In March 2010, Electrotherm Infra Developers (Consortium) was allocated commercial land in Sector 16 for the World Trade Tower project. The developers were expected to complete the project within three years and apply for an occupancy certificate by August 2, 2013. Although the towers were completed before the NGT orders, the developers failed to obtain the occupancy certificate due to incomplete documentation. The application for the certificate, submitted on June 5, 2013, was rejected by the Authority’s Building Cell on July 9, 2013, due to non-compliance with Building Regulations, 2010.
Impact of the NGT Ban
The NGT imposed a construction ban on August 14, 2013, which affected projects within 10 kilometers of the bird sanctuary. The restrictions were further tightened in October 2013, halting the issuance of occupancy certificates without environmental clearance. Despite the completion of the towers, ET Infra Developers argued that the NGT’s orders hindered their ability to secure the necessary certificate. They requested an extension of payment installments and a waiver of interest from September 2013, but these requests were initially denied by the Authority.
Legal Proceedings and Relief Measures
The developers sought a “zero period” waiver starting from July 9, 2013, claiming that the NGT ban impacted their project. The Noida Authority granted partial relief for the period between August 14 and October 28, 2013. When the ban was lifted in August 2015, following a reduction of the eco-sensitive zone to 100 meters, the developers approached the Allahabad High Court. In 2017, the court directed the Authority to address the grievances within four weeks. Consequently, the Authority provided limited zero-period benefits and waived penal interest from October 29, 2013, to August 19, 2015.
Recent Developments
On August 24, 2023, ET Infra Developers requested a review of the waiver under the Uttar Pradesh Urban Planning and Development Act, 1973. The state government subsequently approved a full waiver of interest and lease rent, totaling financial relief of ₹63 crore, for the period between August 2013 and August 2015. However, the Noida Authority is contesting this decision, arguing that the delay in obtaining the occupancy certificate was due to the developers’ own shortcomings. Officials emphasized that granting such relief would set an unfair precedent and impose a significant financial burden on the Authority, noting that ET Infra had already received partial waivers and cleared all dues by November 2022.
The ongoing dispute highlights the complexities of urban development and regulatory compliance, as well as the financial implications of government decisions on local authorities.
Read more: Haryana RERA Consent Verification Strengthens Allottees’ Rights
for more updates follow us on instagram
