Supreme Court pulls up UP, GDA over 19-year delay in Ansal housing project

Top court directs Uttar Pradesh government and GDA to decide pending approvals within two weeks, saying nearly 1,600 homebuyers have waited 19 years

The Supreme Court on Thursday sharply criticised the Ghaziabad Development Authority (GDA) and the Uttar Pradesh government for delaying approvals required to implement the resolution plan of Ansal Urban Condominiums Private Limited (AUCPL), observing that their inaction had left nearly 1,600 homebuyers waiting for possession of their flats for 19 years.

 

A Bench of Justices J B Pardiwala and K Vinod Chandran directed the GDA and the state government to jointly consider the proposal already forwarded by the authority, take a final decision on renewal of the development licence and approval of the revised building plans, and place a reasoned order before the court within two weeks.

 

The directions came on an appeal by One City Infrastructure Private Limited, the successful resolution applicant (SRA), which argued that despite approval of its resolution plan under the Insolvency and Bankruptcy Code (IBC), the GDA's refusal to renew the development licence and approve revised plans had stalled the project and delayed the delivery of homes.

 

Questioning the GDA, the Bench observed: "Fate of around 1,600 homebuyers is in your hands. What do you propose to do? We have been given to understand that you have forwarded some proposal, seeking some guidance from the State Government."

 

Justice Pardiwala also questioned the state government's delay, remarking: "It's been now 19 years, one nine. The homebuyers are still waiting for their flats to be handed over to them... Have you looked into it? Have you understood what the Ghaziabad Development Authority is trying to convey to you?"

 

The state government said the GDA had sought guidance on whether the revised building plans could be approved, who would develop common infrastructure, and whether Ansal Properties & Infrastructure Limited (APIL), which is the original developer, or the SRA would be responsible for constructing Economically Weaker Section (EWS) and Lower Income Group (LIG) housing.

 

The Bench said these issues required an immediate decision.

 

"Today the issue is whether GDA can lawfully continue to withhold renewal of the development licence and sanction of the revised building plan, and thereby stall the implementation of a resolution plan already approved under Section 31 of the IBC. We want you to immediately look into this issue... Are we clear?" it said.

 

Expressing displeasure over the authorities' conduct, the court remarked: "You are supposed to protect the interest of these homebuyers. It is your callous attitude that leads to such litigations... We are giving you one last opportunity."

 

Senior Advocate Nikhil Goel, appearing for the SRA, submitted that his client was only seeking recognition of its rights over the 26-acre parcel and approval of the revised plans to complete the project.

 

Representing the homebuyers, Senior Advocate Menaka Guruswamy said hundreds of families were living in partially completed buildings without basic civic amenities and sought early implementation of the resolution plan.

 

Appearing for APIL, Senior Advocate Vikas Singh contended that the development licence for the larger 99-acre township continued to vest with his client, which remained willing to compensate homebuyers with interest and redevelop the project if the 26-acre parcel was returned.

 

The Bench, however, reiterated: "We are only concerned with the homebuyers," before directing the principal secretary and the GDA vice-chairman to meet, resolve the pending issues and place a reasoned decision before it within two weeks.