Noida Authority mulls legal challenge over flat registration order

19 Mar 2024 CW Team

In separate rulings on 29 February, the HC instructed the Authority to register flats within a month and a half and initiated an ED investigation against the builders. Lokesh M, CEO of Noida Authority, expressed the intention to contest the order either by filing a review in the Allahabad HC or appealing to the Supreme Court. The Authority emphasised its obligation to recover dues for public development purposes.

An Authority's legal department officer noted that while the HC directed the ED to recover developers' dues, it remained silent on the course of action if the recovery failed.

Lotus Espacia, developed by Cloud 9 Projects, has 168 homebuyers awaiting registry. The HC instructed the Noida Authority to issue occupancy certificates, register flats within six weeks, and recover over Rs 8.7 billion in dues.

In the case of Lotus 300, the Authority was directed to issue occupancy certificates and execute registries within a month. The condominium, comprising 336 flats, has nearly 250 handed over, and the developers owe the Authority over Rs 16 billion.

The HC's order addressed the insolvency proceedings of Hacienda Project Private Limited (HPPL), the developer of Lotus 300. It specified a moratorium under the Insolvency and Bankruptcy Code, 2016, protecting HPPL from creditor proceedings but not its promoters.

Bhuwan Chaturvedi, AOA president of Lotus 300, expressed discontent over the delay in registry execution due to developer dues. The AOA has appealed to the Authority and state government, urging a resolution to favour homebuyers and plans to meet with the Chief Minister. ?

The Noida Authority is considering challenging an order from the Allahabad High Court requiring the registration of flats in Lotus Boulevard Espacia and Lotus 300. The Authority has stated that the builders owe substantial dues, making the registrations impossible. In separate rulings on 29 February, the HC instructed the Authority to register flats within a month and a half and initiated an ED investigation against the builders. Lokesh M, CEO of Noida Authority, expressed the intention to contest the order either by filing a review in the Allahabad HC or appealing to the Supreme Court. The Authority emphasised its obligation to recover dues for public development purposes. An Authority's legal department officer noted that while the HC directed the ED to recover developers' dues, it remained silent on the course of action if the recovery failed. Lotus Espacia, developed by Cloud 9 Projects, has 168 homebuyers awaiting registry. The HC instructed the Noida Authority to issue occupancy certificates, register flats within six weeks, and recover over Rs 8.7 billion in dues. In the case of Lotus 300, the Authority was directed to issue occupancy certificates and execute registries within a month. The condominium, comprising 336 flats, has nearly 250 handed over, and the developers owe the Authority over Rs 16 billion. The HC's order addressed the insolvency proceedings of Hacienda Project Private Limited (HPPL), the developer of Lotus 300. It specified a moratorium under the Insolvency and Bankruptcy Code, 2016, protecting HPPL from creditor proceedings but not its promoters. Bhuwan Chaturvedi, AOA president of Lotus 300, expressed discontent over the delay in registry execution due to developer dues. The AOA has appealed to the Authority and state government, urging a resolution to favour homebuyers and plans to meet with the Chief Minister. ?

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