Summary
The Supreme Court closed contempt proceedings concerning undeveloped NOIDA hotel plots while devising an optional resale mechanism to end a decade-long stalemate. Allottees choosing surrender would receive premium refunds adjusted for any shortfall below Rs 1,05,000 per square metre. Proportionate unused lease rent and 7% interest on premium, frozen at 30 April 2021, were payable only from resale proceeds exceeding that base. Those not validly exercising the option had to clear dues before supplementary leases, failing which lawful resumption would follow.
Issues
- How the dispute over supplementary leases and unpaid dues could be resolved while protecting public land value.
- What refund, interest and surrender conditions applied under the revised optional resale arrangement.
Held
- The prolonged stalemate left public assets undeveloped and premium unpaid. The Court framed a settlement-oriented mechanism protecting both parties and public interest rather than finding NOIDA’s officers guilty of contempt. (¶¶ 17-18, 29-30)
- Allottees choosing the revised second option could recover premium deposits, reduced by any resale-price shortfall below Rs 1,05,000 per square metre. The mechanism protected that base return for NOIDA. (¶¶ 22(A)-(B), 22(D)-(F))
- Proportionate one-time lease rent for the unused remainder carried no interest. Interest on premium was 7% annually up to 30 April 2021 and frozen thereafter. Both heads were payable only from, and to the extent of, resale proceeds exceeding the protected base; any remaining surplus belonged to NOIDA. (¶ 19-22)
- Stamp duty was not ordered refunded by NOIDA. Following resale and execution of new documents, allottees could apply to the State Government, which would decide under its policy and law. (¶¶ 19(B), 22(G))
- Election of the second option required affidavits and company resolutions within two weeks, followed by the specified accounting and possession timetable. On surrender, title and leases would end; resale was to occur within three months and eligible payments within three months of sale. (¶ 25-26)
- Failure to elect or hand over possession meant the first option applied: payment of all dues within reasonable time before supplementary leases. Continued default permitted resumption and lawful dispossession. Possession was to be peaceful, vacant and as is, without compensation for improvements. (¶ 27-28)
Result
Contempt petitions closed with the revised optional resale, refund and compliance directions; remaining contentions rejected.