Noida, Greater Noida authorities obstructing completion of Amrapali flats: SC

The Supreme Court on Thursday pulled up the Noida and Greater Noida authorities for adopting an “obstructionist” approach by delaying approval for using the unused FAR (floor area ratio) in Amrapali projects, where 85% work on nearly 37,000 housing units is complete and funds are proving to be a major hurdle in completing the remaining flats before March 2025.
Summoning the chief executive officers (CEOs) of both Noida and Greate Noida authorities to court on August 14, a bench headed by justice Bela M Trivedi said, “We have seen in this matter, the approach of Noida and GNIDA has never been to cooperate. You have had an obstructionist approach.”
The court was anguished over the non-compliance of its March 29, 2023, order directing both authorities to decide positively on the building/layout plans for use of unused FAR in seven Amrapali projects (two in Noida and five in Greater Noida) within 15 days.
FAR is the ratio of the total built-up area against the total area of the plot
The court-appointed receiver, the current attorney general R Venkataramani, informed the bench that he was yet to hear from the two agencies on the plans submitted by project contractor NBCC in April last year.
Senior advocate Siddharth Dave, appearing for NBCC, said when NBCC met Greater Noida officials on July 10, they were informed that the “issue of additional FAR has been delayed on the advice from the authorities’ legal team”.
“Your officers will be in trouble. This is not the way authorities should function,” said the bench, also comprising justice SC Sharma.
Senior advocate Ravindra Kumar, appearing for the two authorities, submitted an affidavit on July 30, a copy of which was not supplied to the receiver or NBCC. Further, it was filed by a deputy director who had since been transferred.
The court directed the CEOs of the two authorities to file the affidavit within a week explaining their stand on the unused and purchasable FAR and deciding on the plans submitted by NBCC as per the March 2023 order.
A note submitted to the court by the receiver stated that of the 46,575 units belonging to the erstwhile Amrapali Group, 37,256 units have remained stuck since a decade. Between 2020 and June 2024, 85% of the project was completed with funds generated from various sources while the remaining units will be finished by March 2025, he submitted, subject to availability of funds and unused FAR.
“Presently, the project is under financial stress and there is a deficit due to shortage of realization from attached assets and realization of unused FAR,” Venkataramani said, seeking urgent directions from the court.
The NBCC submitted in a separate note, “Due to non-payment to the contractor’s bills on time, the progress of work at all Amrapali sites shall be adversely affected. This may result in a complete halt in construction of the projects.”
The receiver further informed the court that pursuant to court’s orders, flats of more than 6,800 defaulter homebuyers were sold by NBCC generating revenue of over ₹3,700 crore.
Until now, the receiver said a total of ₹8,114 crore was received by way of recoveries done by court, payments made by existing homebuyers, fresh sale of unsold and defaulter category units, sale of attached properties, and loans received through consortium of banks and SBI Cap, of which ₹8,024 crore was utilised.
Still, the project will require an additional ₹3,300 crore for the remaining construction, repayment of loans drawn from financial institutions, as well as construction of Amrapali projects in Kerala and Chattisgarh. Advocate ML Lahoty, appearing for homebuyers, said he had no objection so long as common amenities and facilities to residents is not affected.
Out of the unused FAR in seven projects, the NBCC said it is likely to raise over ₹1380 crore. “In order to curb the present deficit in funds available for construction and with a view to maximize inflow of funds, NBCC is itself keen to undertake development of the remaining unused FAR available at six locations — five locations in Greater Noida namely Centurian Park, Golf Homes, Leisure Valley, Dream Valley, Leisure Park and one location of Noida’s Silicon City.
In Noida’s Princely Estate, the NBCC successfully secured over ₹40 crore for the unused FAR.
Venkataramani told the court that he has personally interacted with CEOs of Noida and Greater Noida and ₹100 crore has also been paid towards sanctioning of plans for utilising the unused FAR.
Noida’s counsel said the Supreme Court order of July 2019 only permitted the NBCC to complete the existing projects and not use excess FAR and sought to point it out in the affidavit to be filed before the next date.
NBCC clarified that it is not proposing to develop additional FAR horizontally and is only increasing the number of units vertically to ensure that amenities available to residents along with green area do not get compromised.