‘Don’t see a way out’: Homeowners in Noida project where Mayawati’s brother and his wife got 261 flats

 

WITH insolvency proceedings going on at real estate developer Logix Infratech Private Ltd, Mayawati’s brother Anand Kumar and his wife Vichiter Lata made claims amounting to Rs 96.64 crore for 261 flats they had purchased in its Blossom Greens project in Noida. As reported by The Indian Express on Thursday, the purchase was marred by alleged irregularities, including 36 of the units being allotted to Anand Kumar already in the possession of other parties.

One of these homebuyers is Shweta Gupta.

Now 43, Shweta recalls being allotted unit G-1601 in 2010, when she was expecting her first child. Originally from Bihar’s Begusarai, she had moved to NCR after marrying Manish Gupta a year earlier.

Years passed, yet the family did not get possession of its 3BHK flat. In 2021, Manish became a casualty of the Covid pandemic, leaving Shweta and their two children — a 12-year-old daughter and a 7-year-old son — behind. To date, she is waiting.

Former Uttar Pradesh Chief Minister Mayawati, Mayawati, Noida, Express investigation, Indian Express, India news, current affairs Blossom Greens society in Noida. Express photo by Gajendra Yadav

“I have no money left; all our savings went into buying the flat. We took a loan, which I’m still repaying, and I have my children’s education to look after,” said Shweta, breaking down.

“After Manish’s death, I got a job as an HR exectutive in the company where he worked on compassionate grounds, but whatever I earn goes into paying the instalment of Rs 15,000 every month,” said Shweta, who lives with her brother’s family in a rented flat in Noida Extension. The 2BHK houses eight people.

“Over the years, we paid around Rs 43 lakh, and were promised that even with a delay, we would get the flat by 2014. That changed to 2018, then 2021… now I don’t know whether I will ever get the flat.”

A transaction audit report ordered by the Interim Resolution Professional and reviewed by The Indian Express states: “Unit G-1601 was allotted in the name of Mr Anand Kumar on 04.04.2016, by debiting ‘Anand Kumar SD’ Ledger for Rs 19.57 lakh. On the same date, G-1601 was in the name of Ms Shweta Gupta as per the tally records, and unit G-1601 was in the name of different parties in the same period. No details/agreement and justification of bearing the unit in the same period are provided. The transactions are considered Fraudulent under Section 66 of the Insolvency and Bankruptcy Act, 2016.”

Blossom Greens society in Noida. Express photo by Gajendra Yadav Blossom Greens society in Noida. Express photo by Gajendra Yadav

When asked about this, she said, “Earlier we had a flat in tower G, but the builder allotted us a new unit in H block, saying this will be constructed soon and handed over to us. But that was a lie.”

In the 1980s, Gopi Nair left Kerala’s Kannur district and came to Delhi to build a career. After some years, he bought a 1BHK flat in Noida. Then, as his children grew up, he sold that for a 2BHK in Indirapuram in the 2000s. Some years later, he got to know about the Blossom Greens project, where possession was promised in 18 months.

“The sellers told me they would hand over the flat in two years. I signed the agreement and paid more than Rs 3 lakh as the first instalment for a 3BHK. The next instalment was much bigger, so I sold my Indirapuram flat and paid over 23 lakhs on November 4, 2011, and became a tenant in my own flat. But the new home never got delivered, and I am still paying rent,” said Nair, who is now 60 and working in a marketing company.

“I have put my life’s earnings into this, paying over Rs 48 lakh for that flat. I did not come from Kerala for this. During the course of all this, I suffered a heart attack. We went to the Supreme Court, the High Court, and the Uttar Pradesh Real Estate Regulatory Authority (RERA), yet there’s been no relief. The National Company Law Tribunal (NCLT) has ordered Corporate Insolvency Resolution Process (CIRP), but I do not see a solution.”

Yogendra Singh, a businessman and resident of Delhi’s Greater Kailash, recalls being contacted by promoters of the company and buying a flat based on their assurances.

“I met senior management in their office and learned about the company’s future plans and the project’s viability. They assured me they have a good reputation in the market and had completed and delivered many commercial projects in Noida,” said Singh.

“Based on these claims, I bought a 3HK, paying around Rs 47 lakh in eight instalments. The company built a skeletal structure of the towers and collected almost 85% of the amount from buyers. They promised possession in 18 months, but it is still incomplete.”

“The Logix gave excuses that they did not have funds to complete the project. But most of the buyers had already paid 80-90 per cent,” said Singh, who runs an international recruitment business. “I bought this flat for my daughter, who was getting married.”

Singh is one of 65 homebuyers of the project who had filed a complaint against the company with the Economic Offences Wing in Delhi. Acting on this, the Delhi Police registered an FIR in March 2022 under IPC sections 406 (criminal breach of trust), 420 (cheating and dishonestly inducing delivery of property) and 120B (criminal conspiracy) against the management.

The FIR lists nine accused, including former directors Shakti Nath, Vikram Nath and Roshni Nath and current directors Davender Mohan Saxena and Mukesh Mohan Shrivastava. When The Indian Express reached out to EOW officials seeking an update on the case, they said the investigation is ongoing.

Like the other homebuyers, Noida resident Sudhanshu Hajela expressed anger at the enforcement agencies for not doing enough. He purchased a 3BHK flat in 2011. “It was supposed to be my daughter’s first flat but she’s still living on rent. What is the Uttar Pradesh RERA doing; why was it constituted,” said Hajela (65).

He said though the NCLT has initiated the insolvency process, the burden of finding the right builder remains on the homeowners: “Even in the resolution procedures, buyers and IRP have to do all the work to find a builder who can complete the project and hand over possession to us.”

In response to grievances raised by the buyers, UP RERA chairman Rajive Kumar said: “An audit is a tool to find out wrongdoings and to take follow-up action. There are a number of reasons that such projects get stalled or become unviable. However, the good thing is that the market is going up and prices are getting high.”

He said RERA has recommended certain measures to the government for such projects. “The state government is working on a policy to kickstart stalled and unviable projects. UP RERA has done a study and made recommendations so that buyers’ issues are resolved at the earliest.”

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