Latest news with #PrakashPadia
News18
08-07-2025
- Business
- News18
Builder Can't Be Penalised For Authority's Delay In Approving Plans: Allahabad High Court
Last Updated: The court granted relief to M/s Kinetic Buildtech Pvt Ltd on cancellation of allotment by the Greater Noida Industrial Development Authority (GNIDA) The Allahabad High Court has held that a developer cannot be faulted for construction delays when the development authority itself fails to act on the building plan or hand over lawful possession of the land. The bench of Justice Prakash Padia, allowing a writ petition filed by M/s Kinetic Buildtech Pvt Ltd, quashed Greater Noida Industrial Development Authority (GNIDA)'s decision to cancel a plot allotted to the builder and forfeit Rs 10.64 crore, the initial premium deposit, over alleged default in payment and construction. Kinetic Buildtech was allotted a 22,000-square-metre plot in Sector-10 of Greater Noida in 2014. A lease deed was executed in 2015, following which the company paid the mandatory 20% premium. However, the developer contended that it was never given actual physical possession of the plot as per the site plan annexed with the lease deed. Later on, there was a unilateral change in the site layout by GNIDA. A modified layout was introduced on July 9, 2015, but was never communicated to the builder until years later, during a revision hearing. Even then, the possession letter bore no signature of the person handing over or receiving possession, which the court noted made it merely 'paperwork" and 'no actual physical possession". The court also found that while the developer had submitted a building plan and even deposited a processing fee of Rs 38 lakh, GNIDA never decided on the application. A letter raising objections to the plan was allegedly sent in May 2016, but the court observed that there was no proof that this letter was ever served to the petitioner. In light of these findings, the high court concluded that GNIDA's actions—failing to hand over possession, not executing a corrected lease deed, and leaving the construction application pending—could not be used as grounds to punish the petitioner. 'The development authority kept the application for grant of permission for construction pending with him, as such, it cannot be blamed that petitioner has not carried on the construction within the stipulated period…Thus, the petitioner cannot be blamed and charged for the same," the court held. The court cited the SC judgment in the case of Municipal Committee Katra & others Vs Ashwani Kumar (2024), and said no party should be allowed to profit from its own wrongdoing. 'The development authority itself had faulted in not delivering possession and not taking a decision on the application for construction. For this, the petitioner cannot be penalised," it held. Accordingly, the court set aside the cancellation orders and directed GNIDA to execute the required correction deed and extend the construction deadline accordingly. First Published:
Time of India
29-06-2025
- Business
- Time of India
Allahabad HC quashes Greater Noida order to cancel plots, cites possession delay and lack of civic infra
Noida: In a legal setback to Greater Noida Industrial Development Authority (GNIDA), Allahabad high court has quashed two separate plot cancellation orders, saying the Authority "failed to meet deadlines and followed flawed processes". One order was related to a large IT/ITES project in Tech Zone II and the other to a group housing project in Sector 10. The twin verdicts, delivered earlier this month by Justice Prakash Padia, restored the allotments and brought relief to the realtors, Elevator Properties and Kinetic Buildtech. They had challenged GNIDA's actions in court, alleging that its own defaults stalled their projects. You Can Also Check: Noida AQI | Weather in Noida | Bank Holidays in Noida | Public Holidays in Noida In the first case, on June 16, 2023, GNIDA had cancelled the allotment, citing non-utilisation of land, non-obtaining of a completion certificate and failure to deposit due payments. The 25-acre IT/ITES plot was originally allotted in Oct 2007 to a consortium led by Anant Raj Industries Ltd. It was later transferred to its subsidiary, Elevator Properties, through a lease deed in Aug 2010. Despite over a decade passing, no construction took place. Against the cancellation, Elevator Properties filed a petition in the HC in 2024, arguing that the Authority failed to complete external development works, such as roads, drainage and services, making the land commercially unusable, despite the developer paying the entire premium at lease execution. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo A key legal issue was the amendment to Section 7 of the Uttar Pradesh Industrial Area Development Act in 2022, allowing the Authority to cancel non-utilised plots only by first issuing notice at least three months before Dec 31, 2022, directing the allottee to complete construction by that date. If the plot remained unused, it would stand automatically cancelled on Dec 31, 2022. GNIDA, however, issued its notice only on Jan 3, 2023, after the cut-off date of Sept 30, 2022 to issue such notices. In his order, Justice Prakash Padia ruled that after missing the statutory deadline, GNIDA lost legal power to cancel under this amended provision. The court called the cancellation "wholly without jurisdiction" and "perverse," restoring the allotment and entitling Elevator Properties to consequential benefits. The court also noted GNIDA's cancellation had earlier been upheld by an order dated Nov 23, 2023, passed by the principal secretary, industrial development department, which the court has now set aside. In the second case, the court quashed GNIDA's 2017 cancellation of a plot measuring five acres, allotted to Kinetic Buildtech in May 2014 under a group housing scheme. The plot was allotted in 2014 and the petition against the cancellation was filed in this case in May 2023.
