NOIDA: The Allahabad High Court has scrapped Noida Authority’s decision to seal several towers at Lotus Zing in Sector 168, citing violations of due process.
The order was delivered by a division bench of justices Manoj Kumar Gupta and Anish Kumar Gupta on Dec 3. Three C Projects, the developer, argued before the court that Noida’s move to seal the towers was “mechanical and illegal” and had caused irreparable harm.
In a communique dated Oct 16, Noida Authority’s planning department asked the deputy general manager (civil) to seal the towers due to the expiration of the sanctioned plan’s validity and the developer not obtaining a completion certificate. It said the developer was continuing construction without necessary approvals.
The developer told the court it had not been served a prior notice or been given an opportunity to be heard. The construction Noida referred to, it said, was minor finishing and repair work that was going on. It said the rest of the construction had been completed within the sanctioned plan’s validity period, and finishing and repairs did not require an extension.
While defending its move to seal the towers, Noida’s counsel argued in court that the developer was yet to pay its dues. The counsel said once dues were cleared and an application for extending the sanctioned plan’s validity is filed, requisite permissions would be granted.
The high court rejected this stand, saying financial arrears cannot justify sealing without following due process. The court observed that the developer was entitled to a hearing before such an action and ruled the sealing unsustainable in law.
In its judgment, the court stated: “We are of the opinion that the respondents, by proceeding to seal the building without affording an opportunity of hearing to the petitioner-company, have committed a violation of the principles of natural justice. Accordingly, the direction contained in the impugned communication (of Oct 16) to seal the building and the action taken in pursuance thereof is held to be unsustainable in law and is accordingly quashed to the extent it relates to the petitioner-company.”
The court directed Noida Authority to issue a show-cause notice to Three C within a week, giving the developer two weeks to respond. It instructed Noida Authority to subsequently pass a fresh order based on the developer’s reply. Until a final decision is made, the developer has been restrained from making any structural alterations or carrying out new construction at the site.
Last month, Noida Authority referred discrepancies in asset valuations to the Insolvency & Bankruptcy Board of India (IBBI) for two projects under insolvency proceedings at National Company Law Tribunal, one of which is Lotus Zing. According to Noida Authority, Lotus Zing has dues of Rs 572 crore.
With around 2,200 flats, Zing has 16 towers, of which two were sealed. HK Agarwal, a homebuyer in Zing, told TOI that initially, possession of flats in four towers (1, 2, 15 and 16) were given. Residents have moved into four more towers, while the outer structures of the other eight towers are complete. Construction work on towers 8 and 9 had resumed in Aug this year but was stopped by Noida Authority.
Source Homevior.in
