Noida to auction unsold units to recover dues from AIMS Max Gardenia
The two real estate projects in Noida are owned by a consortium formed by four promoters, who failed to utilise the policy announced by the UP govt last year
The Noida authority on Thursday cancelled the allotment of 60,000 square metres of commercial land made to AIMS MAX Gardenia Developers Private Limited and also took over 122 apartments in Gardenia Glory in Sector 46, a project of Gardenia AIMS Developers Private Limited, after the promoters failed to pay the land cost dues despite repeated notices.
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The two projects, one commercial and the other residential group housing, are owned by a consortium formed by four promoters, who failed to utilise the policy announced by the Uttar Pradesh government last December to avail of rebates on interest rates and clear the dues, officials said.
The authority has identified 12 such developers, who will face action for not using the terms of the policy that was brought to recover dues and also pave way for registry of flats in stalled legacy housing projects.
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The legacy policy also allows the Noida authority board to attach any (other than the housing project) property of the promoter in order to recover dues and pave the way for apartment registry.
“Our action against the defaulter realtors will continue if they will not use the policy, clear the dues and come forward for executing apartment registry. The state government has asked us to take action against all such realtors,” said Lokesh M, chief executive officer, Noida authority.
Authority officials AIMS Max Gardenia failed to pay its dues despite multiple reminders. The new policy offers realtors relief from interest and penal interest for the two years of Covid (about 20% of the dues). AIMS Max Gardenia developers have dues of ₹1,717 crore for the Sector 75 project for which it was allotted 600,000 square metres on which housing complexes and shopping mall have been built, and ₹692 crore for the Sector 46 group housing project, along with interest.
Authority officials said the lease of 60,000 square metres of commercial land, for the Eco City project in Sector 75, will also be cancelled.
Further, the authority has decided not to allot any new land to the consortium members until all dues are recovered. In Sector 46, Noida, 122 sealed flats will be auctioned to recover ₹692.48 crore, officials said.
“We will e-auction the 122 apartments available in Sector 46 Gardenia Glory housing project and raise funds towards the dues so that we can issue occupancy certificate and allow registry of units in favour of homebuyers,” said a Noida authority official, asking not to be named.
Homebuyers are in a panic since they got to know that the authority has started acting against the housing project.
“We had booked a flat in the Glory project in 2010 and got possession in 2017. But we have been unable to get registry done despite paying the total flat cost to the developer. The Noida authority is in nexus with the developer. We failed to get justice despite our demands and protests against the realtor and the Noida authority. And now after many years, the authority is taking action. Let’s see what the authority will do now,” said Lokesh Kumar, a homebuyer in Glory project in Sector 46.
Media in-charge of AIMS Max Gardenia Group said they want to take the benefit of zero period by depositing 25% of the total dues, which is ₹600 crore and another ₹450 crore on the recommendations of former NITI Aayog chairman Amitabh Kant.
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“The step taken by the government is a good one and we are happy to go with it. The matter that the authority is talking about -- the dues amounting to ₹1,717 crore for the Sector 75 project and dues of ₹692 for the Sector 46 project -- is being heard by the court. Whatever the court orders, we will proceed accordingly,” the spokesperson said.