Noida authority takes BIG action against promoters of 2 housing projects, as realty firm fails to...

The Noida authority has taken big action against the promoters of two housing projects in the city. The action comes after the realty firm failed to pay the land cost dues and also could not complete the housing project within the stipulated time despite repeated notices. The authority has complained to the Economic Offences Wing (EOW), seeking a probe against the promoters of two housing projects, one of them located in Sector 100 and another in Sector 110, HT reported.

Earlier, the Noida authority realised that despite having collected funds from the homebuyers, the promoters misused the same without bothering to pay the authority. “We have filed a complaint because the promoters have not paid the financial dues and also not completed the housing projects leaving the homebuyers to suffer,” said Lokesh M, Noida authority CEO. These projects are partially completed and the homebuyers are living in them. Some towers in these two projects are yet to be built and delivered, said officials.

Case 1

The Noida authority allotted 120,000 square metres of group housing land in Sector 100 to realty firm Red Fort Jahangir Properties Pvt Ltd on December 24, 2008. The company was later renamed Granite Gate Properties Pvt Ltd. A few days later, the authority executed the land's lease deed and gave possession to this firm to develop a housing project. However, despite repeated notices, the realty firm failed to pay the land cost dues and could not complete the housing project within the stipulated time. So far, the authority struggles to recover Rs 495.85 crore land cost dues from this realty firm.

Case 2

The Noida authority on December 10, 2009 allotted 164,120 square metre land in Sector 110 to Granite Gate Properties Pvt Ltd. At the same month, the authority executed the lease deed and gave possession to the company. The same set of promoters sold off the properties including apartments and shops in this Sector 110 project thereby creating the third-party rights. These promoters have an obligation to pay Rs 1,093.64 crore in financial dues to the authority for the Sector 110 project.

Realty firm's response

A company official said that they spent the money raised from the homebuyers on building these two housing projects. “The Noida authority’s financial dues are calculated wrongly. We have delivered the apartments to buyers. We need to build only one tower in Sector 100 that can be done from the amount to be received from homebuyers against their unit’s cost. In the Sector 110 project too, some apartments will be finished and delivered by the funds to be recovered from the buyers. The Noida authority had in 2018 already got an audit done to check fund diversion. We don’t understand why the Noida authority is again demanding this EOW probe,” said a spokesperson of the firm.