The Supreme Court has restored the resolution plans approved for multiple stalled real estate projects of Greater Noida Industrial Development Authority-linked developer Earth Infrastructure, while sharply criticizing the authority for what it called prolonged inaction and failure to protect homebuyers.
A bench led by Justice Sanjay Kumar held that the National Company Law Appellate Tribunal (NCLAT) erred in setting aside the resolution plans earlier approved by the National Company Law Tribunal (NCLT). The Court observed that hundreds of homebuyers had already suffered for years due to stalled construction and administrative delays.
Background of the Case
The dispute arose from insolvency proceedings initiated against Earth Infrastructures Limited (EIL) under the Insolvency and Bankruptcy Code (IBC). Several projects connected to the company were under development on lands leased by GNIDA through subsidiary companies.
Two separate resolution applicants - Alpha Corp Development Private Limited and Roma Unicon Designex Consortium - had submitted plans for completing the stalled projects. These plans were approved by the Committee of Creditors and later by the NCLT in 2021.
However, GNIDA challenged those approvals before the NCLAT, arguing that the leased lands could not be transferred or dealt with without its permission. The appellate tribunal accepted GNIDA’s objections and set aside the approved plans in January 2023.
Court Examines GNIDA’s Conduct
The Supreme Court closely examined GNIDA’s role during the years when the projects remained incomplete. The bench noted that despite repeated complaints from homebuyers and knowledge that construction had stalled since 2016, the authority failed to take timely steps.
“The facts brought on record demonstrated that hundreds of crores were received from the allottees… but the projects stood stalled since 2016,” the Court noted while discussing the NCLAT findings.
The bench further observed that GNIDA had been informed about the insolvency proceedings in 2018 and 2019 but still did not actively participate or submit claims on time.
The judgment said GNIDA
“contributed greatly to the present imbroglio by its persistent inaction and ineptitude all through.”
Resolution Plans and Homebuyers’ Interests
The Court also dealt with objections raised against Alpha’s resolution plan concerning the Earth Copia project in Gurugram. It held that the project stood on freehold land unrelated to GNIDA and therefore should not have been affected by GNIDA’s appeals before the NCLAT.
The bench emphasized that a majority of homebuyers had voted in favour of the resolution plans through the Committee of Creditors mechanism under the IBC.
Referring to dissenting buyers, the Court observed that
“a few persons within such class cannot dissent with the majority vote in favour of the resolution plan.”
Decision
The Supreme Court ultimately found that the NCLAT had gone too far in overturning the approved plans and reopening the insolvency process.
The Court also took note of GNIDA’s delayed claims, inconsistent stand during litigation, and failure to monitor the projects despite obligations under the lease deeds.
Accordingly, the bench restored the approved resolution plans concerning the stalled projects and allowed the insolvency resolution process to move forward for completion of the developments and delivery of units to homebuyers.
Case Details:
Case Title: Alpha Corp Development Private Limited v. Greater Noida Industrial Development Authority & Ors.
Case Number: Civil Appeal No. 1526 of 2023 and connected matters
Judge: Justice Sanjay Kumar and Justice Alok Aradhe
Decision Date: May 05, 2026
