The Allahabad High Court has directed real estate developer Omaxe Buildhome Ltd. to deposit ₹25 crore and release 50 additional flats in its stalled Noida housing projects — Grand Omaxe and Forest Spa.
The direction comes after a long-standing dispute where the developer failed to execute tripartite lease agreements in favor of homebuyers, despite them paying the full amount for the flats. The delay was attributed to outstanding dues of nearly ₹250 crore owed by Omaxe to the New Okhla Industrial Development Authority (NOIDA) under its land lease agreements.
“If respondent no.3 deposits the entire arrears of lease premium with interest, it would be open to the Development Authority to deal with their application for completion/occupation certificates,” the High Court noted in its 2018 interim order.
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Following a government scheme issued on 21st December 2023 for reviving stalled projects in the NCR region, Omaxe deposited over ₹93 crore, which amounted to 25% of its total outstanding dues. This enabled the release of 170 flats from a total of 678 pending units, as acknowledged in the court proceedings.
Subsequently, Omaxe proposed to deposit an additional ₹25 crore to facilitate the release of 50 more flats. The development authority, not objecting to the proposal, agreed that these 50 flats could be released upon such deposit.
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“On deposit of ₹25,00,00,000 by the Developer/Builder within two weeks from today, 50 additional flats, apart from 170 flats, would stand released,” the bench comprising Justice Manoj Kumar Gupta and Justice Anish Kumar Gupta ordered.
The court also emphasized that the list of homebuyers, with respective dates of allotment or Builder-Buyer Agreements, will form the basis for the execution of sub-lease deeds. The names provided by the Apartment Owners Association (AOA), including transferees and joint owners, must also be considered.
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“In case any dispute arises between the homebuyers regarding entitlement to sub-lease in terms of the instant order, the CEO of NOIDA Authority shall decide within one week,” the Court clarified.
The interim order passed on 23rd March 2018 was accordingly modified, and NOIDA was instructed to file a status report on the next date of hearing scheduled for the second week of July 2025.
Case Title: Tarun Kapoor and 29 Others v. New Okhla Industrial Development Authority and 2 Others [WRIT - C No. - 10854 of 2018]
Counsel for Petitioners: Nipun Singh, Naman Agrawal
Counsel for Respondents: Ankit Singh, Anuj Srivastava, CSC, Kaushalendra Nath Singh, Kunal Ravi Singh, Manjari Singh, Pankaj Dubey, Priyanka Midha, Raghuvansh Misra, Ram M. Kaushik, Shikhar Kaushal
