NOIDA: The Noida Authority has filed a complaint with Delhi Police’s economic offences wing (EOW) against promoters of Logix City Developers Pvt Ltd over unrealised dues and missed delivery timelines at its Blossom Zest housing project in Sector 143.
Logix was allotted a 1 lakh sqm group housing plot on Apr 8, 2011 and the lease deed was executed on June 14, 2011.
Accusing promoters Devendra Mohan Saxena, Shakti Nath, Vikram Nath and Meena Nath of creating third-party rights and misappropriating funds collected from sale of apartments but not paying up their dues, Noida Authority’s argument is that it not only caused it big financial losses but also left homebuyers in distress.
Noida Authority CEO Lokesh M said, “The misuse of funds and the creation of third-party rights by the promoters have severely impacted homebuyers and resulted in substantial financial damage to us.”
With dues of Rs 666 crore to lenders, Blossom Zest project insolvency proceedings were initiated against Blossom Zest at the National Company Law Tribunal (NCLT) in 2022. Blossom County in Sector 137, another of the company’s projects, has Rs 446 crore in dues and went to NCLT in July 2023.
Noida Authority has, meanwhile, referred discrepancies in asset valuations to the Insolvency & Bankruptcy Board of India (IBBI) for two projects under insolvency proceedings at NCLT — 3C Projects’ Lotus Zing in Sector 168 and GSS Procon’s Victory Crossroads in Sector 143B. Lotus Zing has dues of Rs 572 crore and Victory Crossroads project Rs 33 crore.
Earlier this year, Noida Authority offered developers with stalled projects facing insolvency proceedings the option to withdraw from NCLT and apply for the state govt’s rehabilitation package, which was announced in Dec 2023 after adopting several recommendations of the Amitabh Kant committee. The package applies to both residential projects and the housing components of commercial projects.
Letters were sent to defaulting projects, including Blossom Zest, Blossom County and Lotus Zing, urging them to consider the state govt’s policy. But the developers did not come forward.
In Sept, Noida Authority decided to write to the EOW to investigate defaulting developers, conduct financial audits, and track whether funds received from homebuyers were diverted. Subsequently, it issued a final notice to developers of seven residential projects, cumulatively owing Rs 1,035 crore in land dues, to pay up.
These seven projects are IVR Prime (Sector 118) with dues of 659 crore, Futech Shelters (Sector 75, Rs 114 crore), Gardenia India (Sector 75, Rs 11 crore), TGB Infrastructure (Sector 50, Rs 55 crore), MPG Realty (Sector 137, Rs 38 crore), AGC Realty (Sector 121, Rs 20 crore) and Manisha KB Projects (Sector 61, Rs 38 lakh).
