NOIDA: The Noida Authority has opted to challenge an Allahabad High Court ruling that annulled the state’s decision to revoke lease rent waivers previously granted to various real estate firms under the “zero period” policy. This policy is designed to offer relief against delays that developers cannot control, emphasizing the need to protect revenue and maintain policy consistency.
During a meeting on June 14, the Authority’s board decided to contest the High Court’s April 23 decision, made in response to a petition by Greatvalue Projects India. The Authority asserts that the lease rent waivers contradict its established policy, which categorically prohibits any waivers.
In light of this, the board has resolved to file an appeal in a higher court against the High Court order to “maintain policy uniformity and safeguard its financial interests.” The Noida Authority expressed prior concerns regarding the financial repercussions of the court’s decision, stating that waiving lease rent could significantly impact its revenue.
The case stemmed from lease rent relief granted to Greatvalue Projects, alongside Pan Realtors and Express Builders and Promoters, based on orders issued by the state’s revisional authority between July and September 2023.
Initially, these orders permitted the developers to benefit from a “zero period” and waived lease rent for specific intervals following a government directive aimed at rehabilitating stalled projects announced in December 2023. However, on January 9, 2024, the same authority retracted the waivers, citing contradictions with the Noida Authority’s policy, which forbids any form of lease rent waiver.
Greatvalue Projects subsequently challenged this withdrawal in the High Court earlier this year.
