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The Allahabad High Court has allowed the registration of 220 flats in Noida's Grand Omaxe and Forest Spa projects after the developer offered to deposit an additional INR 25 crore with the Noida Authority. This payment is part of a broader settlement where the developer had already paid INR 93 crore. The ruling addresses a dispute that began in 2018 over denied sub-lease deeds due to unpaid dues, affecting 1,692 sanctioned flats. The court's decision, which follows the Uttar Pradesh government's December 2023 rehabilitation policy for stalled projects, clears hurdles for occupancy certificates and aims for finalization of home deliveries.
The Allahabad High Court recently permitted the registration of hundreds of apartments in Noida. This action by the court concerns units in the Grand Omaxe and Forest Spa projects. The developer proposed to deposit an additional sum with the local authority to resolve long-standing payment disputes, leading to the court's order to unblock property transfers for homebuyers. Advertisement
The court allowed the registration of 220 flats in these projects. The unnamed developer agreed to deposit an additional INR 25 crore with the Noida Authority. This payment comes after the developer had already deposited INR 93 crore under the Uttar Pradesh government's rehabilitation policy for stalled projects. That initial deposit had previously allowed 170 flats to be registered.
The issue of pending registries for these projects, which total 1,692 sanctioned flats, began in 2018. At that time, allottees of Grand Omaxe approached the high court because they were denied tripartite sub-lease deeds, citing the developer's unpaid lease premium. The case later expanded in 2021 to include homebuyers of the Forest Spa project.
A December 2023 order from the Uttar Pradesh government offered relief to stalled projects if developers paid 25% of their recalculated dues. The developer's original dues of INR 545 crore were revised to INR 374 crore after accounting for a two-year 'zero period' during the Covid pandemic. The court suggested an amicable settlement, which led to the developer's offer of the additional INR 25 crore.
The Noida Authority confirmed that this payment would remove obstacles to granting occupancy certificates and other necessary permissions for both projects. The court also ordered the Authority CEO to resolve any sub-lease entitlement disputes within one week. It further clarified that if homebuyers fail to complete formalities within two weeks of notification, the next person on the waiting list would receive the opportunity. The Authority is required to file a status report on the progress of sub-leases by the next hearing. This INR 25 crore payment is specifically expected to enable 50 more registries.
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