Noida Authority through a Public Notice dated 09.10.2020 issued in leading newspapers seeks to cancel allotment of all housing project plots which failed to complete construction and obtain Completion & Compounding Certificates within 5 years or such period stipulated in the lease deeds. By the Public Notice the Noida Authority has issued ultimatum to all developers to whom land has been allotted, to obtain Completion & Compounding Certificate to avoid cancellation of allotment. It is likely that Greater Noida and Yamuna Expressway Authorities also may follow the suit.
The Public Notice has the dangerous potential of spoiling
the entire housing projects in Noida, Greater Noida and Yamuna Expressway where
construction is at different stages of construction. While part completion has been obtained and
further phase completion formalities underway with the Authorities, these
Authorities ought to have cleared all the Completion formalities first and then
determine which of the projects are incomplete.
The proposed cancellation of project if implemented
strictly, would impact almost all the residential projects, lakhs of buyers,
banks and financial institutions and crores of workers and employees of these
projects. In many projects, possession
has been given to buyers without obtaining completion. In the event of cancellation of allotment,
those living in such projects would become homeless. In some projects, part completion has been
obtained and possession given. Buyers of
such projects would also suffer.
The question whether the legislation as well as the Public
Notice would withstand the test of justice is agitating the minds of all
concerned. It is worth considering that
the Hon’ble Supreme Court vide order dated 10.06.2020 in Writ Petition C No.
940 of 2017 Bikram Chatterjee & Ors. Vs. Union of India & Ors took
stock of the situation of allotment of land by Noida and Greater Noida
Authorities to developers and directed these Authorities to re-determine their
land dues applying 8% p.a. simple interest so that the Developers complete
their projects and the buyers get their flats.
Instead of complying with the orders of the Hon’ble Supreme Court, Noida
Authority’s decision to cancel the allotment would, in all probability, amounts
to contempt of court and would not withstand the test of law.
One would hope that wisdom will prevail on these Authorities
and they withdraw the proposed action for cancellation of allotment, instead
comply with the orders of the Hon’ble Supreme Court in letter and spirit.
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