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Noida Authority has filed a complaint with Delhi Police's Economic Offences Wing (EOW) against developers Shubhkamna Buildtech and IVR Prime Developers for failing to clear outstanding dues and misusing funds collected from homebuyers. The developers allegedly created third-party rights by selling flats but diverted the proceeds without settling their financial obligations. Shubhkamna Buildtech owes over INR 165 crore, while IVR Prime Developers has outstanding dues exceeding INR 660 crore. Additionally, a recovery notice of INR 57.6 crore has been issued against Sethi Buildwell for failing to comply with the state government's rehabilitation policy for stalled projects. Authorities have taken legal action and instructed the district magistrate to recover dues through a recovery certificate, reinforcing their commitment to protecting homebuyers' interests.
Noida Authority has lodged a complaint with Delhi Police's Economic Offences Wing (EOW) against real estate developers Shubhkamna Buildtech and IVR Prime Developers for failing to clear dues and diverting funds collected from flat buyers. Advertisement
The Authority has accused the promoters of these firms of financial misappropriation, claiming that despite collecting funds from homebuyers, they did not meet their financial commitments. This has not only resulted in substantial financial losses but has also left homebuyers in a precarious situation.
According to Noida Authority CEO Lokesh M, Shubhkamna Buildtech's promoters-Mukesh Khurana, Diwakar Sharma, Kamal Singh Rothan, Harish Kumar, and Piyush Tiwari-created third-party rights by selling flats in their group housing project, Shubhkamna Tech Homes, located in Sector 137. However, they failed to clear the land dues while diverting the collected funds. Official data reveals that the builder owes over INR 165 crore, and the project has yet to receive an occupancy certificate, despite 692 flats being part of the development.
For the Ajnara Ambrosia project in Sector 118, IVR Prime Developers (formerly IVRCL Infrastructure) was allotted 1.3 lakh square metres of land. While the project was sanctioned for 4,065 flats, only 3,385 units have been built, none of which have been registered. The developer owes Noida Authority over INR 660 crore.
An official statement from Noida Authority alleged that the company's promoters, including Ila Reddy, E Sudhir Reddy, KAshok Reddy, R Balrami Reddy, E Sunil Reddy, TN Chaturvedi, RC Sinha, TRC Bose, and Ashish Dhawan, created third-party rights by selling flats but misused the proceeds. Due to non-payment of dues and failure to complete the project despite multiple notices, a complaint was submitted to the Delhi Police EOW.
Additionally, a recovery notice amounting to INR 57.6 crore has been issued against Sethi Buildwell. The developer was allocated 20,000 square metres of land for the Sethi Max Royal housing project in Sector 76. Out of 726 approved flats, only 455 have been registered, while 281 remain unregistered.
Officials indicated that the developer had enrolled in the state government's rehabilitation scheme for stalled projects, introduced in December 2023. However, it failed to deposit 25% of the recalculated dues upfront as mandated by the policy.
Earlier this week, Noida Authority directed the district magistrate to recover the dues as land revenue using a recovery certificate. Lokesh M stated that these measures were essential to safeguarding homebuyers' interests and ensuring compliance with financial and regulatory obligations.
In a bid to enhance financial accountability, Noida Authority had, in September, resolved to request the EOW to conduct financial audits and track fund utilisation by defaulting developers. Following this decision, final notices were issued to developers of seven residential projects, including IVR Prime, instructing them to settle cumulative land dues amounting to INR 1,035 crore.
Similarly, in November last year, the Authority filed a complaint against the promoters of Logix City Developers Pvt Ltd over INR 666 crore in outstanding dues and unfulfilled delivery commitments related to its Blossom Zest housing project in Sector 143.
The Noida Authority's legal action against defaulting developers highlights its firm stance on financial transparency and buyer protection. These actions signal a broader effort to safeguard homebuyers and maintain financial integrity in Noida's property market.
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