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The Supreme Court has ordered that no coercive action be taken against Lotus Greens in connection with alleged irregularities in its Noida real estate project. This directive follows the developer's challenge against an earlier ruling by the Allahabad High Court, which had called for a CBI investigation into violations related to the Sports City project in Noida's Sector 150. The high court had also instructed the Noida authority to recover outstanding dues from all stakeholders and consider fresh bids in case of cancelled allotments. Lotus Greens expressed confidence in the apex court's intervention, hoping for a fair resolution for consortium partners and homebuyers.
The Supreme Court has granted relief to real estate developer Lotus Greens by prohibiting any coercive measures against the company in an ongoing case regarding irregularities in its Noida real estate project. A bench comprising Justices M M Sundresh and Rajesh Bindal has issued notices to the Uttar Pradesh government and other parties following a plea filed by the developer. Advertisement
The bench stated that while proceedings could continue, no coercive steps should be taken against Lotus Greens. This decision came after the developer contested an order by the Allahabad High Court.
Earlier, the high court had directed a CBI investigation into the execution of Lotus Greens' Sports City project in Noida's Sector 150. The ruling, issued in the past week, instructed the CBI to file complaints against all officials of the Noida authority, allottees, and builders involved in the project's allotment, development, and approval process. It also extended this order to any other individuals found complicit.
Additionally, the Noida authority was mandated to notify all stakeholders within a week, requiring them to clear outstanding dues, including interest and penalties. The high court further indicated that if the allotments were revoked, the authority could invite fresh bids based on current market rates. The ruling highlighted a Comptroller and Auditor General (CAG) report, which estimated a loss of INR 9,000 crore to Noida, attributing it largely to incorrect pricing strategies.
Following the Supreme Court's intervention, a spokesperson for Lotus Greens expressed confidence in the judiciary, stating that the company believes the apex court's involvement will bring long-awaited justice to its consortium partners and homebuyers.
The Sports City project, spanning 12 lakh square meters, was launched in mid-2014 with a unique development model. Seventy percent of the land was earmarked for sports facilities and open spaces, while the remaining 30 percent was designated for residential and commercial use. Lotus Greens, as a key developer in the consortium, had secured the project with the intent of creating a sports-centric urban space.
The Supreme Court's order provides temporary relief to Lotus Greens as it continues to challenge the Allahabad High Court's ruling. The case underscores the scrutiny over large-scale real estate projects in Noida, especially those linked to alleged financial mismanagement. With the high court highlighting potential losses to the Noida authority and calling for fresh evaluations, the legal proceedings could have significant implications for the region's real estate sector. Meanwhile, stakeholders-including developers, investors, and homebuyers await further clarity on the project's fate as investigations progress.
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