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Thursday, July 25, 2024

Noida Authority to Contest Allahabad HC Order on Registration of Lotus Flats

The Noida Authority is gearing up to contest an order from the Allahabad High Court mandating the registration of flats in Lotus Boulevard Espacia and Lotus 300. Citing outstanding dues from the builders, the Authority is preparing to challenge the court’s directive, emphasizing the importance of recovering public funds for development purposes.

Following separate rulings on February 29, a bench of justices Mahesh Chandra Tripathi and Prashant Kumar instructed the Authority to register flats within a specified time frame and ordered an investigation by the Enforcement Directorate (ED) against the builders.

“We are currently evaluating the court’s order and considering options, whether to file a review petition in the Allahabad High Court or appeal directly to the Supreme Court,” stated Lokesh M, CEO of Noida Authority. “It’s imperative for us to address outstanding dues, which are crucial for ongoing development projects.”

An official from the Authority’s legal department highlighted that while the High Court directed the ED to recover dues from the developers and hand them over to the Authority, it remained silent on the course of action if the ED failed in its recovery efforts.

Lotus Espacia, a housing society in Sector 100 developed by Cloud 9 Projects, has 168 homebuyers awaiting flat registrations. The High Court directed the Authority to issue occupancy certificates and register flats within six weeks, along with initiating recovery proceedings for outstanding dues, amounting to over Rs 87 crore. In case of remaining dues, the Authority was permitted to sell unsold inventories from a sealed tower within the project.

In a similar vein, the High Court instructed the Authority to issue occupancy certificates and execute registries within a month for Lotus 300, a condominium with 336 flats, where nearly 250 have been handed over. The developers owe over Rs 160 crore to the Authority.

The court’s order also addressed the insolvency proceedings faced by Hacienda Project Private Limited (HPPL), the company behind Lotus 300. Due to the moratorium under the Insolvency and Bankruptcy Code, proceedings against HPPL were halted, prompting the Authority to submit its claims before the Insolvency Resolution Professional (IRP). The High Court clarified that the moratorium only applied to HPPL, not its promoters, who remained liable for prosecution.

Bhuwan Chaturvedi, AOA president of Lotus 300, expressed frustration over the delay in flat registrations due to the developer’s dues. “We have appealed to the Authority and state government, urging them to prioritize the interests of homebuyers,” Chaturvedi stated, indicating plans to escalate the matter to the Chief Minister’s office.

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