Noida: The Allahabad High Court has issued strong directives following what it terms as a "scam" related to the Noida Sports City housing projects, demanding investigations by the CBI and the Enforcement Directorate (ED). The court's orders pertain to three out of four Sports City projects and highlight the failure of developers to fulfill their commitments to homebuyers and the alleged involvement of Noida Authority officials in forming a "dirty-nexus" with the developers.
A division bench, comprising Justices Mahesh Chandra Tripathi and Prashant Kumar, issued ten separate judgments on Monday after examining the violations surrounding the projects. Many aspects were covered—including financial misconduct and land usage irregularities—as well as the shocking lack of promised sports facilities, which have remained incomplete even after considerable government resources were allocated. "This court has no other recourse but to refer the investigation to CBI. CBI would also investigate the role of all the persons involved in this scam. We hope and trust..." the court order stated.
The judges made it clear how the developers have been prioritizing commercial gain—focusing on profit rather than fulfilling their obligations to establish sports infrastructure on the project site as originally mandated. The Sports City is based on the premise of developing world-class sports facilities on 70% of the allotted land, yet developers have largely sidestepped this requirement, fostering resentment among homebuyers and leading to bans on registries and occupancy certificates.
Among those named were Xanadu Estate as the lead developer, and Logix Infra Developers and Lotus Greens Constructions, both of which faced scrutiny for not adhering to the development plans. The court was particularly scathing of the actions taken—or lack thereof—by the Noida Authority, which failed to take suitable action even after major financial irregularities were laid bare by the Comptroller and Auditor General (CAG) audit report released last year. The report indicated the loss of about Rs 9,000 crores to Noida Authority and the state government stemming from underpriced land allocations and unauthorized ownership transfers.
Despite realizing these discrepancies, the Noida Authority has not taken any significant disciplinary action against its officials, with the judges expressing their astonishment. "The past several years have seen numerous officials come and go without anyone sounding the alarm about the scam nor taking action against the implicated parties," noted the court.
This case also casts light on the dismal conditions homebuyers find themselves under; with the alleged misappropriation of their money, they have struggled to obtain their properties due to stalled projects and bureaucratic inertia. The court made it clear they would safeguard homebuyers' investments, as stated: "If the petitioners are not able to complete the project strictly as per the brochure condition...the money deposited by them be forfeited..."
Simultaneously, the court ordered the Noida Authority to swiftly execute registries for homebuyers whose apartments are ready. All three towers constructed by the Gaursons Group are impacted, and the court has directed the Noida Authority to facilitate the registries within two weeks, contingent upon certain conditions being met concerning the development of sports facilities.
The proceedings have drawn considerable media attention as they not only represent individual grievances but also highlight systemic corruption and failure within local authorities, pointing to the need for structural reforms. The Noida Authority, acknowledging the court's orders, stated, "We are arranging the certified copies of the high court orders so we can comply as per the law." This indicates steady progress, but the ultimate efficacy of such compliance remains to be seen.
The sharp criticism of the Noida Authority and developers brings to light the need for urgent accountability and transparent governance to protect homebuyers and restore confidence within the real estate sector. The court's commitment to follow through with thorough investigations signals its intent to expose the extent of practices plaguing the housing project sector.
With over 30,000 homebuyers caught up in this debacle, the ramifications of the High Court’s judgments might well shape the future of how such projects are managed and how officials interact with developers. The court's orders not only aim to redress individual grievances but also endeavor to reform the very processes by which these significant investments are handled, which could lead to a more reliable and ethical real estate sector for homebuyers in Noida.