Noida authority complaints against 2 projects in EOW

The move came after the Noida authority realised that despite having collected funds from the homebuyers, the promoters misused the same without bothering to pay to the authority

NOIDA: The Noida authority has complained in the economic offences wing (EOW) seeking probe against the promoters of two housing projects, one of them located in Sector 100 and another in Sector 110.

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. So far, the authority struggles to recover ₹495.85 crore land cost dues from this realty firm, said officials. (Sunil Ghosh/HT Photo)

The move came after the Noida authority realised that despite having collected funds from the homebuyers, the promoters misused the same without bothering to pay to the authority, said officials.

“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, chief executive officer, Noida authority.

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.

On December 24, 2008, the Noida authority allotted 120,000 square metres group housing land in Sector 100 to realty firm - Red Fort Jahangir properties pvt ltd, later named Granite Gate properties pvt ltd. A few days later, the authority executed the lease deed of the land and also gave the possession to this firm for developing a housing project.

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. So far, the authority struggles to recover ₹495.85 crore land cost dues from this realty firm, said officials.

The authority said that this firm’s promoters sold off the apartments and other properties in this project, thereby, creating the third-party rights. And they misused the funds collected from the property buyers, without paying dues to the Noida authority. The home-buyers have been suffering due to the promoters, who did not deliver the project on time.

“Therefore, the authority has filed a complaint before the economic offence wing department so that a probe can start to establish where they have diverted the funds collected from the home-buyers and investors,” said Lokesh M.

In another case, the Noida authority on December 10, 2009 allotted 164,120 square metre land in Sector 110 to Red Fort Jahangir properties pvt ltd, later named Granite Gate properties pvt ltd. On December 29, 2009, the authority executed the lease-deed and gave possession to Granite Gate properties private limited.

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 ₹1,093.64 crore financial dues to the authority for Sector 110 project.

In response, a Granite Gate private limited official said that they spent the money raised from the homebuyers in 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.