NOIDA: Construction of their flats stuck for years, homebuyers of a delayed group housing project in Greater Noida West have proposed to pay up a portion of the Rs 48 crore the project’s developer owes to Greater Noida Authority in land dues.
Ajnara Realtech Ltd and homebuyers of the realtor’s Le Garden project in Sector 16 have submitted a joint proposal — the realtor has agreed to pay Rs 12 crore upfront, of which Rs 5 crore is to be footed by homebuyers — to the Authority under a legacy stalled real estate policy.
The proposal, currently under review, also seeks to complete the construction of the condominium’s four towers—K, L, M, and N—that are outside the purview of the realtor’s ongoing insolvency proceedings. There are 585 flats in four towers in this project, of which 476 units have been sold. The realtor has proposed to clear the remaining amount by selling unsold units and receivables from the existing allottees once the project is complete.
Ajnara is undergoing corporate insolvency resolution (CIRP) under the National Company Law Tribunal (NCLT) since April 2024. The four towers were excluded from the insolvency proceedings after the developer challenged the order in the National Company Law Appellate Tribunal (NCLAT), arguing the construction was approved under Section 8 of the UP Real Estate Regulatory Authority (UP-Rera) Act, which facilitates the rehabilitation of incomplete projects.
In May 2024, NCLAT stayed the insolvency proceedings against the towers and directed Ajnara to seek benefits under the UP govt’s rehabilitation policy for stalled projects.
Kishalay Deb, president of Lee Garden Phase-3 Welfare Society, said Rera granted approval for a joint completion of the project by homebuyers and the developer in June 2023.
“Following this, construction resumed in Jan 2024. However, when NCLT admitted the insolvency case against Ajnara on April 15, 2024, the project was placed under interim resolution professional (IRP) Amarpal. This was challenged by the developer. In response, NCLAT stayed the order on May 3 last year, and subsequently, on May 17 directed that construction of towers K, L, M, and N should continue under Rera’s supervision,” Deb said. Under the UP govt’s rehabilitation policy, Ajnara’s dues for the project were reduced to Rs 48 crore. Subsequently, homebuyers, Ajnara and the IRP collaborated to propose a plan to clear Greater Noida’s dues to ensure the project’s completion and facilitate property registration.
The project was launched in July 2014 but could not be completed within the period of valid registration till Dec 31, 2020. The developer got a one-year extension under Section 6 of the Rera Act and an additional six-month extension due to the Covid pandemic. However, by June 2023, only 35% of the project was completed, prompting Rera to take action under Section 8. Later, Rera sought a completion plan from the realtor with written consent from a majority of allottees. In response, homebuyers formed the Lee Garden welfare society with over 50% agreeing to a joint proposal.
Considering homebuyers’ interests, Rera recommended the realtor seek approval from Greater Noida Authority for the joint proposal. At the time of approval, the promoter committed to completing all four towers within by June 2025.
