Formulate policy to speed up delayed projects – Allahabad HC to U.P. Govt.

Owing to the inaction by authorities and the government, thousands of under construction apartments across Noida and Greater Noida are delayed by years and there is no sight of completion for half of them in near future. Homebuyers are angry a lot and they are now approaching various Courts.

In one such case, the Hon’ble Allahabad High Court has asked the Uttar Pradesh Government to formulate policy so that the interest of lacs of buyers can be protected and the delayed projects can be finished at earliest. The Court also directed the Noida Authority to look into the grievances of the homebuyers and immediately find a solution for them. However, the question arise, is it worth approaching the High Court for concerns related to delays? In the absence of clear law/rules, HC can’t do much. Read on…

Case Study

Tired of the unending delaying and unfulfilled false promises, the home buyers of “Logix Blossom County, Sector 137, Noida” approached the Allahabad High Court through a Civil writ petition. Homebuyers claim that they had purchased apartments from Logix in their project Logix Blossom County in April 2010 and despite the sanction of plans, the project has not been completed until date.  Buyers requested the court to enforce the provisions of Section 4 (5) to direct the developer to complete the project situated at Plot No. GH-02, Sector 137, Noida at the earliest.

The case is filed under section 4(5) of the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010 . This clause reads as under:

An apartment may be transferred by the promoter to any person only after obtaining the completion certificate from the prescribed sanctioning authority concerned as per building bye-laws. The completion certificate shall be obtained by promoter from prescribed authority within the period of two years from the date of sale agreement. Provided that if the construction work is not completed within the stipulated period, with the permission of the prescribed authority; Explanation: For the purposes of this sub-section “completion” means the completion of the construction works of a building as a whole or the completion of an independent block of such building, as the case may be.

Directions from the Court

To Noida Authority

Since the Noida Authority is the prescribed authority under the provisions of the Apartment Act, we direct the Noida Authority to scrutinize the grievance of the Logix Buyer after due notice to the third builder and determine what remedial steps are required to ensure compliance of law. We clarify that in the absence of the builder at this stage, we are not expressing any opinion on the merits of the grievance and leave it open to the Noida Authority to scrutinize the matter after due notice to the contesting parties.

To Uttar Pradesh Government

The State Government which has the power under Section 27 to issue directions for the efficient administration of the Apartment Act to the competent authorities. We direct the State Government to look into the matter and to consider whether and if so what general directions should be formulated as a matter of policy so as to protect the interest of the purchasers who despite having entrusted their hard earned money are not obtaining possession of their residential flats beyond the period prescribed by the statute.

Judgment is attached for the reference: Logix Blossom County – WRIC(A)_10352_2016

The Fear still blooms over the future

Tired of the inaction and inefficiency of the authorities and the state government, the homebuyers had hope that Hon’ble court would provide a solution to the delays and take strict action against the developers. However, the court has also asked the buyers to approach the Noida Authority and asked authority to mediate in the matter.

We are skeptical about the actions of Noida Authority and the will of the state government to take strict measures against the errant developers. It would be interesting to see what action does the Noida Authority and State Government takes against the developers.

It would be better if the Uttar Pradesh Government implement a strong RERA at earliest and set up the regulator immediately.

3 thoughts on “Formulate policy to speed up delayed projects – Allahabad HC to U.P. Govt.

  • April 11, 2016 at 10:40 pm
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    HC escape it self in this case. it does not give any specific direction to builder or penalize him. no penalty imposed on NOIDA due to failure of implementation of apartment act.

  • April 12, 2016 at 9:25 pm
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    Interesting point is that HC has not prescribed any time limit to the Noida Authority or to the State Government for taking action. Alas, it is a pity that no body in authority is ready to support the buyers so that some logical and time bound action could be taken against the errand builders. God save them

  • April 14, 2016 at 6:29 pm
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    Why buyer put their money when product is not ready?. all across nation buyer(s) should stop buying Plans, they should buy only when product is physically ready. Also majority of buyer are speculative investors, if so, they should bear the Risk instead of crying.

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