NOIDA: The Allahabad High Court’s Lucknow bench has resolved nearly 150 RERA appeals from the Yamuna Expressway Industrial Development Authority (YEIDA) concerning allottees from its inaugural residential plot scheme in 2009, which includes about 21,000 plots in Greater Noida’s Sectors 18 and 20.
The court supported the allottees, mandating YEIDA to pay outstanding dues along with interest for delays, while denying the authority’s request for a refund of pre-deposited amounts.
The original residential plot schemes were initiated adjacent to the Yamuna Expressway. However, allottees faced development delays due to farmers’ protests and legal disputes over land acquisition. Further delays arose following a 2014 government order that granted 64.7% additional compensation to farmers. Disputes reignited in 2021 when buyers requested possession and compensation for delays from UP-RERA. YEIDA attributed its delays to legal challenges and opted to refund a 6% interest for withdrawals, while also designating a “zero period” from November 2013 to November 2016, waiving installment payments.
Initially, UP-RERA assigned a 4% annual interest for delayed possession. However, the Appellate Tribunal adjusted this in September 2023, instructing YEIDA to pay interest at MCLR plus 1% per annum after four years from the allotment, or after 75% of the total premium was settled, whichever came later, until the issuance of possession or an occupation certificate (OC/CC).
Physical possession limits interest claims to when buyers take possession, and these directives must be executed within 45 days; otherwise, buyers can approach UP-RERA for enforcement.
A significant issue at hand was the pre-deposit from YEIDA under Section 43(5) of RERA. The Appellate Tribunal dismissed YEIDA’s appeals, decreeing that the entire pre-deposit must be transferred to the UP Real Estate Regulatory Authority for execution proceedings. YEIDA contended that delays were beyond its control and that the pre-deposit should be refunded once the appeals were settled.
The High Court examined two main legal questions: whether the Appellate Tribunal was correct in designating interest at MCLR plus 1%, and whether the pre-deposit under Section 43(5) should be returned to YEIDA or utilized against dues owed to allottees. Citing Supreme Court precedents, the court concluded that pre-deposits are part-payments of assessed liability and can be appropriated by the authority, with any surplus refunded only upon a successful appeal. The court also highlighted that under Section 18 of RERA, promoters are liable for interest due to delayed possession, regardless of external circumstances if buyers solicit refunds or compensation. YEIDA’s claim of uncontrollable delays was dismissed, and the tribunal reinforced the need for interest payment at MCLR plus 1%, referencing a RERA regulation that applies retroactively.
Your judgment, delivered on October 15 by Justice Pankaj Bhatia, confirms all appeals are dismissed, affirming the Appellate Tribunal’s directions regarding pre-deposit appropriation and interest calculation. This ruling safeguards homebuyers’ deposits and allotment rights under RERA and sets a precedent for timely compensation enforcement in similar delayed possession cases.
According to YEIDA data, 9,865 plots were allocated in Sector 18 and 10,541 in Sector 20. Checklists have been issued for 16,562 plots, with approximately 12,000 registered by allottees. About 1,200 completion certificates have been awarded, yet over 13,400 plots still await checklists.
