No respite in sight for home buyers as Noida Authority to challenge High Court order

Two weeks after the Allahabad High Court ordered Noida Authority to execute registries in the name of home buyers in Cloud Nine’s Lotus Espacia housing project in Sector 100, the authority has decided to challenge the court order, thereby causing more delay in the process.

In response to the writ of the homebuyers, the Allahabad high court in February directed the Enforcement Directorate (ED) to investigate the realty firms, Lotus 300 housing project in Sector 107 and Cloud 9 Projects Private Limited, accused of diverting home buyers’ money to the Lotus Espacia housing project in Noida’s Sector 100 and delaying the project. Nearly 160 buyers are yet to execute registries of their flats.

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The Allahabad High Court order

The high court also directed the Noida Authority to execute the registries in the name of home buyers without seeking a no-dues certificate from the realty firms in these two projects.

However, the Noida Authority chief executive officer Lokesh M and chief legal advisor Ravinder Prasad Gupta said that the Authority will not be able to issue permission for the registration without the promoters paying up the financial dues.

Also Read: Noida authority ultimatum to realtors: Pay dues after waiver or face action

Lotus 300 project has a dues of around ₹166 crore and ₹80 crore is pending against Lotus Espacia.

“We have decided to challenge the Allahabad High Court order on the ground that the authority can not allow registration without the realtor clearing the financial dues. We are exploring the legal options available for us. Either we will file a special leave petition in the larger bench in Allahabad High Court or go to the Supreme Court protecting our financial interests. We have a duty to recover the financial dues as per the law,” said Ravinder Prasad Gupta, chief legal advisor of the Noida Authority.

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