NOIDA: The apartment owners association (AOA) of Lotus 300, a condominium located in Sector 107, has issued a legal notice to the Noida Authority for allegedly ignoring Supreme Court orders related to the registration of flats.
According to AOA officials, despite receiving occupancy (OC) and completion certificates (CC) for four towers with a total of 228 flats on April 22, the registration process has not progressed. The AOA has expressed concerns about initiating contempt proceedings to safeguard the rights of homebuyers.
AOA president Bhuwan Chaturvedi stated that 25 flat owners from towers 3 to 6 had completed their purchases and paid the required stamp duty of Rs 5 crore to the Noida Authority for registration on April 28. However, instead of moving forward with the registration, the Authority sent another correspondence on June 19 to the Resolution Professional, who confirmed all necessary documents for the initial 25 allottees within a week, on June 24.
“Two weeks have passed since then, but the Noida Authority has taken no action regarding registration, which clearly indicates their intent to disregard the Supreme Court’s orders,” added Chaturvedi.
The legal notice, which was issued on Wednesday to Noida Authority CEO Lokesh M, highlighted the AOA’s numerous requests—including letters sent on eight different occasions between April and July—and over 20 visits by representatives to the Authority’s office. The AOA contends that this lack of action constitutes “deliberate and wilful” contempt, adversely affecting genuine homebuyers. They warned that further non-compliance may lead them to pursue contempt proceedings in the Supreme Court.
This legal dispute originates from a prolonged struggle dating back a decade for the registration of 330 flats across six towers within the Lotus 300 Society, which was developed by Hacienda Project Private Limited (HPPL). The Noida Authority allocated 17 acres of land to HPPL in March 2010, with the developer initially promising a completion timeline of 39 months, which was later extended to July 2017. However, they only completed four towers, granted partial possession, and failed to fulfill promised amenities, prompting homebuyers to take legal action.
In 2018, homebuyers filed an FIR with the Economic Offences Wing of Delhi Police against HPPL directors for allegations of cheating, criminal breach of trust, and conspiracy. The Noida Authority subsequently issued a recovery notice for Rs 64 crore against the developers in 2019, which the company contested.
In February 2024, the Allahabad High Court ordered the Enforcement Directorate (ED) to investigate alleged money laundering and fund misallocation by the developers. The court also instructed the Noida Authority to proceed with the issuance of OC/CCs and execute flat registrations without requiring the developers to settle outstanding payments.
The ED investigation was challenged by the former promoters in the Supreme Court, which resulted in a partial stay on the probe while permitting legal action against the former promoters. Additionally, the Supreme Court consistently directed the Noida Authority to expedite flat registrations.
In an order dated September 27, 2024, the court mandated appointing a nodal officer to coordinate with both the AOA and the Resolution Professional overseeing HPPL, currently under insolvency proceedings since November 2022. The court instructed the Authority to complete registrations for towers 1 and 2 within four weeks, allowing for 92 out of 102 flats to be registered starting October 2024.
Officials from the Noida Authority stated they have yet to receive the legal notice but emphasized that the registration process has not been halted. “We have requested details of the builder-buyer agreement and other documents from the IRP to ensure that only valid buyers are able to register their flats,” a senior official explained.
