Noida moves SC over ₹193cr dues for Lotus 300 project
The Noida authority said on Thursday that it has filed a “recall plea” in the Supreme Court to recover ₹193 crore in outstanding dues from Hacienda Project Pvt Ltd (HPPL), the developer of the Lotus 300 housing project in Sector 107.
₹193cr dues for Lotus 300 project” title=”Noida moves SC over ₹193cr dues for Lotus 300 project” />In a September 27 order, the Supreme Court directed the Noida authority to issue registry permissions to protect homebuyers’ interests, disregarding the developer’s unpaid dues. HPPL had failed to clear its financial obligations for the project.
“We have filed a recall petition asking the Supreme Court to revisit its September 27, 2024, order. Without a revision, the Noida Authority stands to lose ₹193 crore in government revenue, which the developer has failed to pay. This plea aims to safeguard the financial interests of the authority,” said Ravi Prasad Gupta, chief legal adviser to the Noida Authority.
Following the apex court’s September order, Noida Authority’s chief executive officer Lokesh M appointed Vaibhav Gupta as a nodal officer to oversee the project’s formalities. In the first phase, registries will be issued for 102 apartments in Towers 1 and 2, which already have occupancy certificates. Towers 3 to 6, which lack these certificates, will be addressed in the second phase after necessary documentation is completed, officials said.
The dispute began when the Allahabad High Court, responding to a writ petition by homebuyers, directed the Noida Authority in February 2024 to proceed with the registry for Lotus 300 without requiring a “no-dues certificate” from the developer. But the authority approached the SC alleging that it wanted to recover its ₹193 crore in land cost dues, but failed to get a favourable decision. Officials now hope the latest recall plea will help protect the authority’s financial interests.
Lotus 300, comprising 330 flats, is currently home to about 300 residents.
The Allahabad high court, in its order issued in February, 2024 observed that the promoters had defrauded homebuyers. The court noted that the promoters collected ₹636 crore from buyers, siphoned off nearly ₹190 crore, and sold part of the allotted land to a third party, pocketing ₹236 crore in proceeds.
The promoters of HPPL and officials that allotted this land are currently facing probe by the Enforcement Directorate (ED) following the Supreme Court order, said officials.
The Noida Authority had allotted 17 acres to HPPL in 2010, with flats initially promised for delivery by 2013-14. However, the developer failed to meet its commitments, leaving buyers in limbo.
