The Allahabad High Court has overturned a local development authority's 2021 order restraining real estate developer Ace Infracity in connection with its Noida Sports City project, nullifying a demand for Rs 79 crore due to the developer's inability to complete work amid land possession issues. The court deemed the restrictions imposed by the Noida Authority unwarranted, highlighting that Ace Infracity had deposited more than the required premium amount. Consequently, the court granted the developer the benefit of the 'Zero Period' and directed the authority not to collect lease premium and rent while instructing a reconsideration of the revised building plan for the project in Sector 150 of Noida.
The Allahabad High Court has nullified a local development authority's 2021 order that had restrained Ace Infracity, a real estate developer, in connection with its project in Noida Sports City. Additionally, the court overturned the Noida Authority's demand for Rs 79 crore from Ace Infracity, citing the developer's inability to complete the project due to the non-possession of land. Ace Infracity had filed a petition against the Noida Authority in May 2023, expressing discontent with the authority's handling of its application for revising building plans, denial of zero-period benefits, refusal to extend the project completion time, and the issuance of a demand notice for Rs 79 crore in March 2023. The demand notice threatened allotment cancellation if the amount was not paid promptly, and the restriction on Ace Infracity was imposed during the 201st Board Meeting of the Noida Authority. The court scrutinized the records and found that Ace Infracity had deposited a total of Rs 134 crore, exceeding the Rs 116 crore required for the allotted plot's premium. Despite this, the Noida Development Authority had not approved the building plans and had raised an additional demand of Rs 79,01,14,116/-. The court deemed this demand unjustified and set aside the imposed restriction. The court acknowledged that the company faced hindrances in completing the project due to non-possession of the entire area, agitation by farmers, and the restraining order. Consequently, the court granted Ace Infracity the benefit of the 'Zero Period' from the date of allotment until the present. The Allahabad High Court ruled in favor of Ace Infracity, allowing its writ petition and setting aside the demand notice dated March 29, 2023. The court directed the Noida Authority not to collect the lease premium amount and lease rent from Ace Infracity for the period starting December 19, 2014. Furthermore, the court instructed the authority to adjust the interest amount due for that period. The Noida Authority was also directed to consider the revised building plan for a project spanning 60,000.54 sqm in Sector 150 of Noida. The conflict originated from Ace Infracity's involvement in a consortium led by Lotus Green Constructions Pvt Ltd within the Sports City scheme initiated in 2014-15. Under this scheme, the consortium received an allocation of 12 lakh sqm of land in Sector 150, with a dedicated 60,000 sqm specifically designated for Ace Infracity.
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