Supreme Court Stays Coercive Action Against Lotus Greens in Noida Project Case

The Supreme Court has ordered that no coercive steps be taken against real estate developer Lotus Greens in connection with alleged irregularities in its Noida Sports City project. A bench comprising Justices M M Sundresh and Rajesh Bindal issued a notice to the Uttar Pradesh government and other concerned parties on a plea filed by the developer.

"Issue notice. In the meantime, the proceedings shall go on, but no coercive steps shall be taken," the court stated in its order.. The decision came after Lotus Green Constructions challenged an earlier ruling by the Allahabad High Court.

On February 24, the Allahabad High Court had directed a Central Bureau of Investigation (CBI) probe into the alleged irregularities in the execution of the Sports City project. The court instructed the CBI to register a case against officials of the Noida Authority and the allottees or developers involved in the project's allotment, development, and approval process.

Additionally, the Noida Authority was directed to issue notices to all stakeholders within a week, seeking full payment of outstanding dues, including interest and penalties. The court noted that in case of cancellations, fresh bids should be invited based on current market rates. The order referenced a Comptroller and Auditor General (CAG) report, which indicated that Noida suffered a financial loss of approximately ₹9,000 crore due to incorrect pricing.

Following the Supreme Court's directive, a spokesperson for Lotus Greens stated that the company had full confidence in the judicial process and expected a fair resolution for the consortium partners and homebuyers involved in the project.

The Sports City project, located in Noida’s Sector 150, was launched in June 2014 and spans 12 lakh square meters. The project was planned with 70% of the land allocated for sports facilities and open spaces, while the remaining 30% was designated for group housing and commercial development.

Lotus Greens, leading a consortium of developers, secured the project in September 2014 through a competitive bidding process. The project aimed to integrate residential and commercial spaces with dedicated sports infrastructure.

With the Supreme Court’s interim relief, Lotus Greens can continue its legal proceedings without the immediate threat of coercive action. The case will continue as the court examines the claims and counterclaims made by the developer and the authorities. Meanwhile, the Noida Authority and the concerned parties must respond to the Supreme Court’s notice, which will determine the next legal steps in the case.