Noida, Greater Noida authorities under fire, Amrapali projects go to NBCC

The Supreme Court verdict on Tuesday, while indicting Amrapali builders of diverting funds meant to construct flats, also slammed the Noida and Greater Noida authorities and banks for colluding with builder and thereby cheating thousands of homebuyers. In the wake of SC’s scathing remarks, the Noida authority is likely to fix responsibility and act against officials responsible for the mess.

“We are examining the Supreme Court order to implement it. We cannot specifically talk about the order until we have studied it. But if the Supreme Court has ordered action against anybody in this case, we will carry it out,” Ritu Maheshwari, chief executive officer, Noida authority, said.

The apex court order said, “The Noida and Greater Noida authorities and the bankers have permitted diversion of funds of homebuyers and the possession of other assets by Amrapali Group. The buyers’ money had been diverted, which was meant for construction on payment of dues to authorities. In case they were paid timely by the Amrapali Group to the authorities and to the banks, substantive liability would have been cleared. But by their inaction and rather connivance, the buyers were cheated by the Amrapali Group. Authorities did not object when mortgages were effected in favour of banks in violation of conditions (sic).”

The Supreme Court also stated that by the ‘public doctrine’ principle, all public authorities are duty bound to observe that the leased property is not “frittered away” along with the homebuyers’ money.

“Concerned ministry of central government, as well as the state government and the secretary of housing and urban development, are directed to ensure that appropriate action is taken as against leaseholders concerning such similar projects in Noida and Greater Noida and other places in various states, where projects have not been completed (sic),” the order further said.

The court said the they are further directed to ensure that projects are completed in a timebound manner as stipulated under in RERA and homebuyers are not defrauded.

Anuj Puri, chairman of ANAROCK Property Consultants, said, “Of the total delayed units in NCR (approx. 2 lakh units) launched in 2013 or before, Greater Noida has the maximum share comprising nearly 50% units and they together are worth Rs 43,600 crore. Real estate activity in Greater Noida boomed on the claim of boosted connectivity to Yamuna Expressway which passes through this region. Developers cashed in on the connectivity prospects and launched innumerable projects over the years. Simultaneously, they also launched projects in Greater Noida West which are now stuck.”

The order has given a ray of hope to homebuyers of other stuck housing projects as well.

“The SC order will benefit buyers of other stuck housing projects because it has issued directions to authorities to ensure that other developers complete their unfinished projects. I am waiting for possession of my flat for more than seven years now. The builder applied for occupancy certificate last year, but we are still awaiting possession of flat as the authority is yet to issue the occupancy certificate,” Reena Aggarwal, chartered accountant, who bought a flat in Logix Blossom County, Sector 137, said.