SC asks Greater Noida authority for proposal to resolve homebuyers' issues

Considering the plight of the hassled homebuyers, the Supreme Court on Tuesday asked the Greater Noida Industrial Development Authority (GNIDA) to submit a proposal for grievance redressal and imposed Rs 5 lakh cost on it for failing to file a timely response.

A bench comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar expressed dissatisfaction over the approach of GNIDA and said, "You are responsible for the mess. Of course, developers made money from the homebuyers. But that does not condone your acts.

The bench said it may order a CBI probe into the whole "mess" if the GNIDA did not come up with a plan to redress the grievances of the homebuyers.

"You come up with a plan in 10 days otherwise we will order a CBI investigation...You will have to ensure that interests of homebuyers are safeguarded. You are also part of the problem. You allowed this mess to be created, the CJI said.

The bench suggested the GNIDA to take over the entire land, develop the projects and give the flats to the homebuyers.

Seeking a detailed affidavit from GNIDA, the bench asked it to provide information including the date of allotment of the land and the date of execution of the lease deeds in favour of the private company.

Besides seeking a comprehensive proposal for the homebuyers, the bench asked the GNIDA to give information on why the allotment of land was not cancelled when the developers violated the terms of the projects.

Senior advocate Shoeb Alam, appearing for over 800 homebuyers, said a PSU was willing to develop the stalled projects and pay up the dues to GNIDA and others, and moreover, no creditors or investors would have to suffer haircuts.

The top court was hearing about 12 appeals arising out of a National Company Law Appellate Tribunal (NCLAT) judgment in relation to the insolvency proceedings of debt-ridden realty firm Earth Infrastructure.

The NCLAT had declined a plea of a batch of homebuyers who challenged the NCLT's approval of Alpha Corp Development's bid to acquire Earth Infrastructure.

The National Company Law Tribunal (NCLT) had on June 8, 2021, approved the resolution plan from Alpha Corp Development. The committee of creditor of the Earth Infrastructure had voted in favour of Alpha Corp with a majority of 99 per cent.

Due to the protracted legal battle, five housing projects, three in Greater Noida and two in Gurugram, of the realty firm are stalled leaving hundreds of homebuyers in the lurch.

Earlier, Alpha Corp had said it would invest around Rs 900 crore to complete the three stalled projects of Earth Infrastructure that it acquired through the insolvency process at Greater Noida.

The housing projects were launched between 2010 and 2012, but were not completed in the stipulated time period.

Approximately 2,900 units were to be developed in these projects.

Ananta by Alpha Corp (erstwhile Earth Copia), Sector 112, Gurugram, is a housing project launched in February 2011; Earth Sapphire Court, Greater Noida, is a commercial project launched in July 2010 and Earth Techone, located on Yamuna Expressway in Greater Noida, is a mixed project launched in June 2012.