Curation Team
NOIDA: Accusing it of deliberately defying Supreme Court orders mandating the registration of flats, the apartment owners association (AOA) of Lotus 300, a condominium in Noida’s Sector 107, has served a legal notice to Noida Authority.
AOA officials told TOI that despite the issuance of occupancy certificate (OC) and completion certificate (CC) for four towers comprising 228 flats on April 22, the registration process remains stalled. This has prompted the AOA to warn of contempt proceedings to protect homebuyers’ rights, they said.
AOA president Bhuwan Chaturvedi said that the first batch of 25 flat owners, out of the 228 flats in towers 3 to 6, have already purchased and deposited the requisite stamp fee totalling Rs 5 crore with the Noida Authority for registration on April 28.
However, instead of proceeding with the registration, the Authority had sent another letter on June 19 to the Resolution Professional, who subsequently provided all relevant documents for the initial 25 allottees after verifying the documents within a week on June 24.
“Two week have passed since then, but the Noida Authority has not taken any steps for the registration. This only demonstrates the Authority’s intention to willingly disobey the orders of the Supreme Court,” Chaturvedi added.
The legal notice, issued on Wednesday to Noida Authority CEO Lokesh M, mentioned repeated requests from the AOA—including letters sent on eight different dates between April and July—and over 20 visits by AOA representatives to the Authority’s office. The AOA argued this inaction amounts to “deliberate and wilful” contempt, harming genuine homebuyers. It has warned that continued non-compliance may force them to initiate contempt proceedings in the Supreme Court.
The legal battle stems from a decade-long struggle for the registration of 330 flats across six towers in Lotus 300 Society, developed by Hacienda Project Private Limited (HPPL). In March 2010, the Authority had allotted 17 acres of land to HPPL, and the developer launched the project with a promised completion timeline of 39 months, which was later extended to July 2017. However, the developer completed only four of the towers, handed over partial possession, and failed to deliver promised amenities, leading to legal action by homebuyers.
In 2018, homebuyers filed an FIR with the Economic Offences Wing of Delhi Police against HPPL directors, alleging cheating, criminal breach of trust, and criminal conspiracy. In 2019, the Noida Authority issued a recovery notice for Rs 64 crore against the developers, which the company challenged.
In Feb 2024, the Allahabad high court ordered an Enforcement Directorate (ED) investigation into alleged money laundering and fund diversion by the developers. It also directed the Authority to issue OC/CCs and execute flat registrations without insisting on payment of dues from the developers.
The ED investigation order was challenged by the former promoters in the Supreme Court. While the court partially stayed the ED probe, it allowed legal action against the former promoters in accordance with the law. In the same order, and in a petition filed by the Authority, the Supreme Court repeatedly directed the Authority to expedite flat registrations.
In its order dated Sept 27, 2024, the court mandated the appointment of a nodal officer to coordinate with the AOA and the Resolution Professional overseeing HPPL, which has been under insolvency proceedings since Nov 2022. The court also instructed the Authority to complete registrations for towers 1 and 2 within four weeks, leading to 92 out of 102 flats being registered starting Oct 2024.
Noida Authority officials said that they are yet to receive the legal notice, but added that they have not stopped the registry process. “Details of the builder-buyer agreement and other documents of the buyers were sought from the IRP so that only genuine buyers are able to register their flats,” a senior official said.
