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The Noida Authority has challenged the Allahabad High Court's directive to register flats in Lotus Boulevard Espacia and Lotus 300, citing INR 87 crore and INR 160 crore in unpaid dues by developers Cloud 9 and HPPL, respectively. Despite occupancy certificates, flat registrations remain stalled for buyers who have paid in full. HPPL is under insolvency proceedings, though the court clarified promoters are still liable for scrutiny. The court also directed the Enforcement Directorate to investigate alleged fund diversion by Cloud 9's promoters. While the Authority may escalate the matter to the Supreme Court, buyer groups argue that compliant homeowners should not suffer for developer defaults.
The Noida Authority has firmly pushed back against the Allahabad High Court's order that directed it to register flats in the troubled Lotus Boulevard Espacia and Lotus 300 projects, both located in Noida. The authority has cited developer dues of INR 87 crore and INR 160 crore respectively as the primary obstacle. Advertisement
At Lotus Boulevard Espacia in Sector 100, 168 buyers have completed payments and secured occupancy certificates. Yet, they continue to wait for flat registrations, stalled since the authority insists dues from developer Cloud 9 must be cleared first.
A similar situation persists at Lotus 300, developed by Hacienda Projects Private Limited (HPPL). Out of 336 flats, only 250 have received occupancy certificates. HPPL's dues exceed INR 160 crore. Complicating matters, HPPL is undergoing insolvency proceedings, and hence, a moratorium is in place. However, the court clarified that this moratorium does not protect the promoters from legal scrutiny.
The bench also directed the Enforcement Directorate to begin an investigation into alleged fund diversion by promoters linked to the Cloud 9 group, an entity already under the scanner for irregularities in multiple projects, including Espacia, Panache, and Zing.
The Authority is now contemplating moving the Supreme Court, aiming to overturn the High Court's directive. In contrast, buyer associations insist that the onus of recovering dues should not delay the rights of fully compliant homeowners.
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