Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Noida Authority has intensified its efforts to recover INR 277 crore in outstanding dues from Sikka Infrastructure, pertaining to a group housing project in Sector 143B. Despite multiple notices and enforcement actions, including the sealing of 31 flats and the threat of legal proceedings, the developer has failed to comply. Consequently, the Authority has initiated proceedings under land revenue laws and filed a formal complaint with the Economic Offences Wing. The developer has also been disqualified from availing benefits under a state policy aimed at reviving stalled real estate projects.
In a decisive move, the Noida Authority has initiated recovery proceedings against Sikka Infrastructure for failing to settle dues amounting to INR 277 crore related to a group housing plot in Sector 143B. Earlier this week, the Authority formally requested the district magistrate to recover the outstanding amount under land revenue laws. Advertisement
The dues, which stood at INR 208 crore, escalated to INR 277 crore after the developer failed to comply with a state government policy introduced in December 2023. This policy was designed to assist stalled real estate projects by offering benefits such as a two-year zero period during the COVID-19 pandemic, contingent upon the payment of 25% of the recalculated liability approximately INR 52 crore in this case. Sikka Infrastructure's non-compliance led to the forfeiture of these benefits.
The Authority had previously taken several enforcement actions, including the sealing of 31 flats in October 2024 and issuing a final 10-day notice in January 2025, warning of referral to the Economic Offences Wing (EOW). Following continued non-payment, a formal complaint has now been filed with the EOW to facilitate the recovery of dues.
The project, spanning approximately 9 acres, was allotted to Sikka Infrastructure in June 2011, with a lease deed executed in August of the same year. Out of 1,351 sanctioned units, 749 were constructed, and occupancy certificates were issued for 323 units. However, none of these units have been registered to date. The Authority has also initiated the process of canceling the revalidation of the project's building plans due to the developer's continued non-compliance.
By leveraging legal avenues and withdrawing policy benefits, the Authority aims to hold developers accountable and protect the interests of homebuyers. This case serves as a cautionary tale for other developers, emphasizing the importance of adhering to financial obligations and regulatory requirements to avoid similar repercussions.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
