Allahabad HC issues a contempt notice against Noida authority

06 Jun 2024 CW Team

The CEO of Noida Authority faces a contempt notice from the Allahabad High Court for neglecting to register around 300 apartments in Lotus 300, located in Sector 107. The authority filed a petition to have its previous order to register the units reviewed, but the court denied it, citing unpaid fees that the developer had not yet paid. The Noida Authority said in its review appeal that the developer had not yet paid Rs 1.66 billion, which prevented it from registering the units. Judges Mahesh Chandra Tripathi and Prashant Kumar, sitting in division, ordered the authority to execute registries for 300 occupied flats within a month on February 29 of this year. They also directed the Enforcement Directorate (ED) to launch an investigation into all promoters for allegedly defrauding homebuyers. A second appeal by former promoter Vidhur Bhardwaj, asking for a review of the February ruling mandating an ED investigation into the developers, was denied by the same panel on May 23. Only in cases where there is "an error apparent on the face of the record, i.e., the error should be grave and palpable, and it must be such that it would be apparent on merely looking at the record, without requiring any long-drawn process of reasoning or reappraisal of the entire evidence to find the error, as that would amount to exercising appellate jurisdiction," the court noted that a review is appropriate. Lotus homeowners pleaded with a single bench of Justice Rohit Ranjan Agarwal on May 27 to issue a contempt notice against the Noida Authority for neglecting to process registers within a month. The CEO of the Authority, Lokesh M., received a contempt notice from the high court. There are 330 apartments in Lotus 300, 300 of which are occupied. The head of the association, Bhuwan Chaturvedi, said that the authority had acted with "gross contempt" by failing to register the apartments in spite of many reminders. The project has been overseen by an IRP since 2022, after the National Company Law Tribunal's admission of IndusInd Bank's application and the initiation of corporate insolvency resolution procedures. The division bench had ordered on February 29 that the authority post all its claims before the IRP but continue with the registries.

The CEO of Noida Authority faces a contempt notice from the Allahabad High Court for neglecting to register around 300 apartments in Lotus 300, located in Sector 107. The authority filed a petition to have its previous order to register the units reviewed, but the court denied it, citing unpaid fees that the developer had not yet paid. The Noida Authority said in its review appeal that the developer had not yet paid Rs 1.66 billion, which prevented it from registering the units. Judges Mahesh Chandra Tripathi and Prashant Kumar, sitting in division, ordered the authority to execute registries for 300 occupied flats within a month on February 29 of this year. They also directed the Enforcement Directorate (ED) to launch an investigation into all promoters for allegedly defrauding homebuyers. A second appeal by former promoter Vidhur Bhardwaj, asking for a review of the February ruling mandating an ED investigation into the developers, was denied by the same panel on May 23. Only in cases where there is an error apparent on the face of the record, i.e., the error should be grave and palpable, and it must be such that it would be apparent on merely looking at the record, without requiring any long-drawn process of reasoning or reappraisal of the entire evidence to find the error, as that would amount to exercising appellate jurisdiction, the court noted that a review is appropriate. Lotus homeowners pleaded with a single bench of Justice Rohit Ranjan Agarwal on May 27 to issue a contempt notice against the Noida Authority for neglecting to process registers within a month. The CEO of the Authority, Lokesh M., received a contempt notice from the high court. There are 330 apartments in Lotus 300, 300 of which are occupied. The head of the association, Bhuwan Chaturvedi, said that the authority had acted with gross contempt by failing to register the apartments in spite of many reminders. The project has been overseen by an IRP since 2022, after the National Company Law Tribunal's admission of IndusInd Bank's application and the initiation of corporate insolvency resolution procedures. The division bench had ordered on February 29 that the authority post all its claims before the IRP but continue with the registries.

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