Board overseeing Unitech housing projects moves SC against Noida Authority

In April, the Noida Authority’s decision to approve single units instead of the whole project was deemed a breach of a court order by the government-appointed board.

In a bid to challenge the Noida Authority’s move of approving individual units instead of the entire Unitech housing project, the government-appointed board responsible for overseeing the project’s progress has taken the matter to the Supreme Court. This action is deemed as a breach of the court’s directive issued back in April.

The board raised concerns about the granting of permissions for individual units within the integrated township development project before a bench led by Chief Justice of India Dhananjaya Y Chandrachud, stating that such actions defy logical understanding.

The yet-to-be-heard application criticized the authority for what it deemed as arbitrary actions contrary to a specific court order. In April, the court instructed the authority to provide approval on a project-by-project basis. The board highlighted that the authority’s insistence on approvals tied to sold units, excluding those subject to refund requests, deviates from the court’s directive regarding “launched projects.

The board pointed out that the reluctance to grant these approvals highlights the autocratic and stubborn behavior of Noida officials, who fail to adhere to several explicit directives issued by the Supreme Court. It also mentioned potential challenges in obtaining approval from the Real Estate Regulatory Authority due to the unavailability of 70% of the sales proceeds previously received by the former Unitech management.

In Noida’s Sectors 96, 97, 98, 113, and 117, numerous prospective homeowners are eagerly anticipating the completion of housing units in ongoing projects.

The court instructed planning authorities in April to sanction updated building blueprints by May 31, encompassing all aspects of the development such as residential units and facilities. Emphasizing that funds from property buyers should be allocated towards project construction to instill trust and inspire optimism among home purchasers.

In Noida and Greater Noida, there are plans for the completion of around 15,000 residential units spread across 10 real estate developments. Numerous homebuyers have put their money into these properties, with each investment amounting to tens of lakhs, despite the fact that the homes are yet to be handed over.

In 2020, the board, consisting of government appointees, assumed control of these projects due to purported financial misconduct by former Unitech promoters Sanjay Chandra and Ajay Chandra, who are currently accused of deceiving homebuyers and engaging in money laundering.

The board was informed by additional solicitor general N Venkataraman that construction costs had surged to more than ₹11,000 crore, prompting the court to expedite the sanction process. Venkataraman highlighted the board’s urgent need for approvals to finalize flats, liquidate unsold inventory, and make use of vacant land.

Ravindra Kumar, a senior advocate representing the Noida Authority, stated that Unitech possesses excess funds, with approximately ₹8,000 crore being tied up in unsold flats and another ₹3,200 crore awaiting payment from prospective homebuyers.