Greater Noida homebuyers get hope as SC seeks financial details on delayed project

                NEW DELHI: In an important decision which 
will allow homebuyers to take charge of their 
societies even if the project has not been 
completed, National Company Law Appellate 
Tribunal (NCLAT) has held that once the 
Apartment Owners Association gets 
registered, management of the complex's 
common areas and facilities has to be 
transferred from the 
promoter to the association.
A bench headed by chairperson of NCLAT 
Justice Ashok Bhushan said a real estate 
company has no right to resist handing over of 
maintenance to the association.
The tribunal passed the order on a plea by the 
homebuyers' association of Supernova 
housing project in Noida, being developed by 
Supertech Ltd, that management of the 
complex 
be handed over to it. The bench directed the 
company to hand over the charge within seven 
days.

Advocate Govind Jee, appearing for the 
homebuyers, told the tribunal that Supernova 
apartment owners had formed an association 
which was registered under Uttar Pradesh 
Apartment (Promotion of Construction, 
Ownership and Maintenance) Act and they 
should be allowed to take over management 
which was being looked after by a company 
called YG 
Estates. The homebuyers approached the 
tribunal as the project is under insolvency.
Supertech argued that as per law, an 
association could be formed only when at 
least 33% of homebuyers had taken 
possession of their flats. In Supernova's case, 
only 27% of the 
total project has received occupancy 
certificate from Noida. There are 2,165 units in 
the project.
The bench, also comprising members Barun 
Mitra and Arun Baroka, said it was a statutory 
obligation for the promoter and apartment 
owners to form an association.
Rejecting the company's plea that 33% of 
apartments have to be handed over before an 
association is formed and that the present 
association was not a valid one, the tribunal 
said, 
"We are of the view that the association having 
been registered and the registration of 
association still being valid it is not open for 
YG Estates to contend that registration of the 
association is not in accordance with the law. 
The issue with regard to non-fulfilment of the 
necessary conditions for registration of the 
association cannot be allowed to be raised in 
these proceedings nor can it be examined in 
these applications. When the association has 
been registered, it has to be presumed that 
registration was made after compliance of all 
necessary requirements."
As the parties raised questions on clearing the 
dues, National Company Law Appellate 
Tribunal directed them to appear before the 
Interim Resolution Professional and arrive at a 
settlement.
"We are of the view that in these proceedings, 
the issues pertaining to outstanding of YG 
Estates or any amount accepted by YG Estates 
cannot be gone into or decided. We are of 
the view that such issues can be raised before 
the Interim Resolution Process who is overall 
in-charge of all projects and management. It is 
for the Interim Resolution Process to take 
a call and take necessary steps for settlement 
of accounts between the parties," it said.


Source : Times of India