Allahabad HC grants relief to Ace Infracity over Noida Sports City project

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Noida/Allahabad, Nov 21 (PTI) The Allahabad High Court has set aside a 2021 order of a local development authority that restrained developer Ace Infracity in connection with its project in the Noida Sports City.

The court also overturned the Noida Authority's demand for Rs 79 crore from the developer, noting its inability to complete work due to non-possession of land.

Ace Infracity had approached the court against the Noida Authority in May 2023.

Their grievance stemmed from the authority's handling of its application for a revision in building plans, the denial of zero-period benefits, an extension of project completion time, and the issuance of a demand notice amounting to Rs 79 crore in March 2023.

In the event of non-payment, the petitioner faced the possibility of allotment cancellation. The restriction on Ace Infracity was imposed during the 201st Board Meeting of the Noida Authority.

The court said the records reveal that the developer deposited a total sum of Rs 134 crore in place of Rs 116 crore against the premium for the plot allotted.

"Despite making a deposit more than the premium amount the Development Authority has admittedly not sanctioned the building plans and a further demand of Rs 79,01,14,116/- has been raised," the court stated.

"In our opinion, in the above scenario, the restriction imposed by the 201st Board Meeting for sanction of revised building plans and excess demand raised is totally unwarranted," the high court observed, setting aside the restriction.

The court said it is of the view that the company was not able to complete the work on account of non-handing of possession of the entire area, agitation by the farmers on the spot, and later, due to the restraining order.

"Thus, the petitioner is entitled for grant of benefit of 'Zero Period' from the date of allotment till today," the HC said.

"Consequently, writ petition is allowed. The demand notice dated 29.3.2023 placing demand for additional compensation, instalment of lease premium and annual lease rent is set aside," it added.

The Allahabad HC directed the Noida Authority not to realise the lease premium amount as well as the lease rent from the petitioner for the period starting December 19, 2014 and also adjust the interest amount due for the period.

The authority was also directed to consider the revised plan for the building which is to come up across an area of 60,000.54 sqm in Sector 150 of Noida.

The origin of the conflict traces back to Ace Infracity's participation in a consortium led by Lotus Green Constructions Pvt Ltd within the Sports City scheme initiated in 2014-15.

Under the 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. PTI KIS VN VN