Noida Authority lodges EOW complaint against Logix Developers
Real Estate

Noida Authority lodges EOW complaint against Logix Developers

The Noida Authority has lodged a complaint with the Economic Offences Wing (EOW) of the Delhi Police against the promoters of Logix City Developers. The complaint pertains to unpaid dues and delays in delivering units at the Blossom Zest housing project in Sector 143, Noida.

The developer was allotted a one-lakh-square-meter group housing plot on April 8, 2011, and the lease deed was formalised on June 14, 2011.

The Authority has accused the promoters, including Devendra Mohan Saxena, Shakti Nath, Vikram Nath, and Meena Nath, of creating third-party rights and misappropriating funds collected from the sale of apartments while failing to clear their dues. According to the Noida Authority, these actions caused significant financial losses to the organization and left homebuyers in distress.

Noida Authority CEO Lokesh M stated that the misuse of funds and the creation of third-party rights by the promoters had severely impacted homebuyers and inflicted substantial financial damage on the Authority.

Blossom Zest, with dues amounting to Rs 6.66 billion to lenders, entered insolvency proceedings at the National Company Law Tribunal (NCLT) in 2022. Another project by the company, Blossom County in Sector 137, with Rs 4.46 billion in dues, was taken to NCLT in July 2023.

Additionally, the Noida Authority has referred discrepancies in asset valuations for two other projects under insolvency proceedings to the Insolvency and Bankruptcy Board of India (IBBI). These include Lotus Zing by 3C Projects in Sector 168, which has dues of Rs 5.72 billion, and Victory Crossroads by GSS Procon in Sector 143B, with dues of Rs 330 million.

Earlier in the year, the Noida Authority extended an option for developers of stalled projects facing insolvency proceedings to withdraw from NCLT and apply for a rehabilitation package announced by the state government in December 2023. The package, developed based on recommendations from the Amitabh Kant committee, applies to both residential projects and housing components of commercial developments.

The Noida Authority has lodged a complaint with the Economic Offences Wing (EOW) of the Delhi Police against the promoters of Logix City Developers. The complaint pertains to unpaid dues and delays in delivering units at the Blossom Zest housing project in Sector 143, Noida. The developer was allotted a one-lakh-square-meter group housing plot on April 8, 2011, and the lease deed was formalised on June 14, 2011. The Authority has accused the promoters, including Devendra Mohan Saxena, Shakti Nath, Vikram Nath, and Meena Nath, of creating third-party rights and misappropriating funds collected from the sale of apartments while failing to clear their dues. According to the Noida Authority, these actions caused significant financial losses to the organization and left homebuyers in distress. Noida Authority CEO Lokesh M stated that the misuse of funds and the creation of third-party rights by the promoters had severely impacted homebuyers and inflicted substantial financial damage on the Authority. Blossom Zest, with dues amounting to Rs 6.66 billion to lenders, entered insolvency proceedings at the National Company Law Tribunal (NCLT) in 2022. Another project by the company, Blossom County in Sector 137, with Rs 4.46 billion in dues, was taken to NCLT in July 2023. Additionally, the Noida Authority has referred discrepancies in asset valuations for two other projects under insolvency proceedings to the Insolvency and Bankruptcy Board of India (IBBI). These include Lotus Zing by 3C Projects in Sector 168, which has dues of Rs 5.72 billion, and Victory Crossroads by GSS Procon in Sector 143B, with dues of Rs 330 million. Earlier in the year, the Noida Authority extended an option for developers of stalled projects facing insolvency proceedings to withdraw from NCLT and apply for a rehabilitation package announced by the state government in December 2023. The package, developed based on recommendations from the Amitabh Kant committee, applies to both residential projects and housing components of commercial developments.

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