Summary
In special leave petitions by homebuyers of a Greater Noida cooperative housing project stalled since GNIDA cancelled the land lease in 2011 amid alleged fraud by the society's office bearers and the developer, the Supreme Court decided no question of law; finding that identifying genuine allottees, restoring the lease and completing construction could not be resolved under Article 136, it appointed a one-Judge enquiry committee headed by Justice Pankaj Naqvi (retired) and listed the matter for its report.
Issues
- How relief can be given to genuine allottees of a housing project stalled for nearly two decades, including whether the cancelled lease can be partially restored to allow allottees to complete the towers.
- Whether these issues could be resolved within proceedings under Article 136 or required an independent fact-finding body.
Provisions considered
- Article 136, Constitution of IndiaThe Court found that the overlapping issues of lease restoration, verification of genuine allottees, apportionment of land dues and completion of construction were unlikely to be resolved in proceedings under Article 136, and therefore constituted an independent enquiry committee. (¶¶ 36, 37)
Held
- No question of law was decided. Noting the allottees' hardship for nearly 20 years, the need to protect genuine allottees against false claimants, GNIDA's failure despite repeated opportunities to propose a workable plan, and the administrative complexity of the matter, the Court constituted a one-Judge committee to enquire into the facts and suggest a resolution. (¶¶ 28, 33, 34, 35, 36, 37, 38)
- The committee is to identify genuine allottees and those willing to join together to complete the project, consult GNIDA on partial restoration of the lease and a formula for each allottee's share of dues, prepare a time-bound completion plan, and, if the allottees of Towers 3 and 4 cannot be identified, examine auctioning those towers by a transparent mechanism to recover costs and land dues. (¶ 39)
- All authorities, banks and allottees must cooperate with the committee; its expenses and the chairperson's honorarium of Rs. 15 lakh are to be borne equally by the allottees and the State of Uttar Pradesh; and a public notice is to be published so that allottees not before the Court can submit claims for verification through the Housing Commissioner. (¶¶ 40, 43, 44, 47)
Result
Petitions kept pending; one-Judge enquiry committee constituted to report in sealed cover within four months of commencing work; logistics to be completed by 21.11.2025; matter to be listed on 24.03.2026 to receive the committee's report.