Allahabad High Court Grants “Zero Period” to Two Realtors
The Allahabad High Court has granted two realtors, in separate petitions, the “zero period” — period for which no interest rate will be calculated — that they had sought on the grounds that Greater Noida authority and the Yamuna Expressway authority failed to hand over possession of housing land to them, thus delaying construction and handover to homebuyers.
Land Allotment Details
The matter pertains to land allotted to Rudra Buildwell in Sector 1 and another in Sector 16 in Greater Noida West in 2011. The Greater Noida authority allotted 81,800 square meters (sqm) of land to a consortium led by Subhkamna Buildtech on August 18, 2010, of which Rudra Buildwell was a part. In March 2011, the land was subdivided, and the Rudra Group got 33,538 sqm land.
A lease deed was executed the next month after Rudra Buildwell paid 10% of the total premium amount of ₹39 crore. The remaining 90% of the land cost was to be paid in 16 half-yearly installments. The lease deed further provided for a moratorium of 24 months from the date of allotment. However, the authority failed to give possession of 13,500 sqm, out of 33,538 sqm, owing to a dispute with farmers.
In response to the developers’ petitions, the Allahabad High Court ruled that the Greater Noida authority must grant the benefit of zero period to the petitioners from the date of allotment till actual possession, i.e., April 2023, and not charge the lease rent and interest accruing thereon in respect of the area of the plot, the possession of which has not been handed over at the time of allotment.
The court also directed the Greater Noida authority to revalidate the map in accordance with the law.
Similar Case for Realty Firm Silverline Furnishing
In a second plea filed in 2021 by realty firm Silverline Furnishing, the bench of chief justice Pritinker Diwaker and justice Ashutosh Srivastava set aside the Yamuna Expressway Industrial Development Authority (Yeida)’s two decisions — one canceling allotment and the other to recover interest as well as lease rent. The realtor, who was allotted 100 acres in Sector 18, demanded a zero period on the grounds that the authority failed to give possession to them owing to farmers’ dispute and therefore it cannot force them to pay interest on the land cost dues nor cancel the allotment.
The court ruled in favor of Silverline Furnishing, ordering Yeida to hand over actual physical possession of the lease land to the petitioner within three months of service of a certified copy of the court order.
Yeida CEO Arun Vir Singh also refused to comment until a copy of the order is received.
Orginal article: Link To Article – provided by Kansas City Realtors