Allahabad HC Directs Noida Authority to Execute Registries in Sports City Housing Project, Orders CBI & ED Probe

The Allahabad High Court has directed the Noida authority to execute the registry of apartments in the name of homebuyers for ready housing projects within two weeks of its order. The court has also ordered a Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) inquiry into the Noida Sports City housing project, targeting officials and developers involved in alleged financial irregularities.

Background of the Sports City Dispute

The Sports City housing scheme was designed to integrate world-class sports infrastructure with residential development. Under this scheme, 70% of the allotted land was to be used for sports facilities, with the remaining 30% for residential projects. However, developers prioritized residential construction over sports infrastructure, leading the Noida authority to halt property registrations, map approvals, and occupancy certificates in January 2021.

Court Orders Execution of Registries

The high court’s directive comes in response to a 2019 plea by Gaursons Group, which sought an occupancy certificate and permission to transfer property titles to homebuyers. The court ruled that the Noida authority must grant the occupancy certificate for three completed towers once the proportionate sports facilities are developed or the petitioner pays the fixed proportionate value of the sports facility. Upon fulfilling these conditions, Gaursons Group will be allowed to proceed with the registration of apartments.

The ruling was delivered by a bench of Justice Prashant Kumar and Justice Mahesh Chandra Tripathi. The court also directed the Noida authority to execute a tripartite deed with homebuyers, ensuring a legal transfer of ownership.

This restriction affected housing projects in multiple sectors, including Sectors 78, 79, and 150, impacting nearly 30,000 homebuyers. Several buyers and real estate firms filed petitions seeking relief from these restrictions.

CBI & ED Investigation into Alleged Financial Mismanagement

Alongside ordering the execution of registries, the high court has directed the CBI and ED to investigate allegations of financial misconduct in the Sports City project. The probe will examine whether funds meant for sports facility development were diverted and whether project norms were violated. Developers, consortium partners, and Noida authority officials are under scrutiny for potential financial mismanagement and failure to comply with the 70% land-use condition.

The investigation aims to determine if homebuyers’ funds were misused, resulting in revenue losses and project delays. The CBI will examine records and transactions involving developers and officials to establish accountability.

Developers' Defense and Noida Authority’s Stand

During court proceedings, developers argued that delays in land allocation by the Noida authority hindered sports facility development. Gaursons Group, which built 800 apartments on 40,000 square meters of land, stated that it was unable to complete the required sports infrastructure due to inadequate land allotment.

The Noida authority countered these claims by citing violations of project conditions, non-compliance with land use requirements, and financial discrepancies. It justified its decision to suspend property registrations, citing a failure by developers to meet contractual obligations.

Impact on Homebuyers

Homebuyers have faced prolonged uncertainty due to the legal and administrative impasse. The court’s directive provides relief by enabling property registration, allowing buyers to secure legal ownership of their homes. However, concerns remain about whether the sports infrastructure will be completed as originally planned.

Next Steps for Noida Authority

Noida authority CEO Lokesh M has stated that the authority is in the process of obtaining certified copies of the court order to ensure compliance. The authority is expected to finalize guidelines for implementing the court’s directives while coordinating with developers to ensure adherence to project norms.

The high court’s ruling sets a legal precedent for similar disputes involving stalled housing projects. It highlights the importance of regulatory oversight in real estate development and the need for transparency in land allocation and project execution. The ruling also underscores the role of investigative agencies in addressing financial mismanagement in large-scale housing schemes.

With multiple stakeholders involved, including developers, homebuyers, and regulatory authorities, the resolution of the Sports City dispute will be closely monitored. The outcome of the CBI and ED investigation will likely influence future regulatory policies and compliance requirements for large-scale real estate projects in Noida and beyond.