NOIDA: The Allahabad High Court has directed the Noida Authority to proceed with the flat registries for the Grand Omaxe and Forest Spa projects in Sector 93B, facilitating 220 families in obtaining their property documents.
The ruling followed the developer’s commitment to deposit an additional ₹25 crore with the Authority within two weeks, enabling the registry of 50 more flats. Previously, the company had contributed ₹93 crore under the state government’s rehabilitation scheme for stalled projects, allowing 170 flats to gain registration approval.
The Grand Omaxe and Forest Spa projects feature a total of 1,692 sanctioned flats, out of which 678 registries were outstanding. The issue arose in 2018 when 30 allotments for Grand Omaxe approached the High Court, claiming that despite having paid in full, they were denied tripartite sub-lease deeds due to the developer’s failure to pay lease premiums.
In a preliminary ruling on March 23, 2018, the court instructed the Authority to halt the issuance of any further occupation or completion certificates for other projects until further notice. The court clarified that if the developer settled all outstanding dues with interest, the Authority could then process applications for completion or occupancy certificates for other projects.
The case widened in 2021 when homebuyers from Forest Spa, which includes three towers and 176 flats, joined the proceedings. Their Association of Apartment Owners requested to have their petition considered alongside Grand Omaxe, since both projects involved the same developer and land parcel.
A significant development occurred with the Uttar Pradesh government’s order in December 2023, which provided relief to stalled projects contingent upon developers settling 25% of recalculated dues. The developer’s original dues of ₹545 crore were reduced to ₹374 crore, accounting for a two-year grace period during the COVID-19 pandemic. After remitting the required 25% advance of ₹93 crore, the developer received the green light to register 170 flats.
During recent hearings, the developer expressed willingness to pay the remaining dues for registering flats in both projects. On May 29, the court proposed an amicable settlement, leading the developer to agree to pay an additional ₹25 crore within a month.
The Authority informed the court that this payment would facilitate the registry of 50 additional flats and indicated that there would be “no obstacles in granting occupancy certificates and other required approvals” for the projects.
The bench, consisting of Justices Manoj Kumar Gupta and Anish Kumar Gupta, acknowledged the Authority’s statements regarding the potential issuance of occupancy certificates for both projects within four weeks. They also ordered that any disputes concerning sub-lease eligibility be addressed by the Authority’s CEO within a week, clarifying that if homeowners did not complete the necessary formalities within two weeks of notification, the next eligible individual on the waiting list would be offered the opportunity.
The court remarked that the list of homebuyers, along with the respective dates of buyer-builder agreements or allotments provided by the developer, and the list submitted by the Forest Spa Association with names of transferees, successors, or joint owners would be utilized to execute sub-leases. The Authority is also required to submit a status report by the upcoming hearing, scheduled for this month, detailing the progress of sub-leases and any outstanding issues to ensure that eligible homebuyers can secure legal ownership of their flats.
