Handing over development of La Residentia project to NBCC ‘not fair’: SC.
The Supreme Court on Tuesday refused to hand over the construction of Noida-based La Residentia to the National Buildings Construction Corporation (NBCC) and allowed the construction company to continue with the development of the project.
A bench of Justices UU Lalit and Ashok Bhushan said: “It would not be proper and proper to entrust the development to NBCC at this stage as prayed by the Association and the applicants supporting the Association.”
In the 44-page judgment, the top court said the difference between the amount received from the concerned flat buyers for the purchase of 632 flats, part of the La Residentia project and the cost of construction, would eventually be credited. General Accounts maintained for the benefit of flat buyers of Amrapali Group of Companies.
The bench said that it is not proper to recall the orders of July 23, 2019 and October 14, 2019 or revisit the issue whether the company can be declared as part of the Amrapali group of companies.
The top court said that unlike all other projects of the Amrapali group, which were handed over to NBCC, development with respect to the La Residentia project has always been a continuous process.
The apex court’s order came on a petition filed by the La Residentia Flat Buyers Association to consider the project as part of the Amrapali group as it was started by Amrapali promoters and represented as Amrapali Project.
The La Residentia project has a total of 3,256 units, out of which 1,484 flats are fully completed and possession of 1,143 flats has already been given to the respective flat buyers. There are 632 units which are unsold. La Residentia Developers Pvt Ltd had severed ties with Amrapali in 2017.
La residential homebuyers had sought parity with the Heartbeat City project, which the court had earlier ordered to be treated as part of the Amrapali Group project.
The bench said that at least 1,143 flat buyers have got possession, while the construction work in respect of phases 1 and 2 is at an advanced stage.
The bench said that the interest of Amrapali Group of Companies and consequently flat buyers who had invested money in other Amrapali projects, has already been determined at 19.75 per cent through orders of July and October 2019.
“Even if there may be some parity with respect to the status of the immediate project against the Heartbeat City project, considering the position of fact on record, sufficient reason to entertain the submission on behalf of the Association. and the applicants supporting the association,” the apex court said.
The top court allowed La Residentia to continue with the construction of residential flats in Noida and said that 632 flats would be allowed to be sold by the company at a reasonable price, provided all related transactions, involving proper documents or execution of works . , are counter-signed by the receiver of the apex court or his nominee.
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