SC modifies its stay order on ED probe of Hacienda Project’s ex-directors, ET RealEstate
NOIDA: The Supreme Court has tweaked its June order staying any further investigation by the Enforcement Directorate (ED) against the former directors of Hacienda Project Pvt Ltd, which developed Lotus 300 in Sector 107.
The apex court observed that the stay on further probe did not prevent the central investigating agency from taking legal action against Vidur Bhardwaj and Nirmal Singh “in accordance with the law”. This was after ED informed the SC that its preliminary probe had revealed financial irregularities by the former directors, which included diversion of funds.
On June 11, the vacation bench of Justices Sanjay Kumar and Augustine George Masih had stayed Allahabad high court’s Feb judgment, which ordered an ED investigation against Bhardwaj, Singh and other former directors. Additionally, the SC asked Noida Authority to proceed with the registry of flats at Lotus 300, which, too, had been mandated by the HC earlier.
On Aug 30, the bench of Justices Sanjiv Khanna and Sanjay Kumar observed, “We have, vide order dated June 11, stayed the operation of paragraph 114 of the impugned judgment. The stay, however, does not bar or prohibit any authority from proceeding in accordance with the law.”
The apex court also expressed concern over the delay in executing registry of flats. It asked the Authority to file within four weeks an affidavit detailing whether it had complied with the HC order on registry. “New Okhla Industrial Development Authority shall file an affidavit in this Court within four weeks from the date of service of this order, stating as to whether it has complied with the direction given in paragraph 117 of the impugned judgment (Allahabad HC judgment of Feb). In case it has not complied with the same, the reason therefore will be indicated,” the SC order read.
The apex court was hearing a petition filed by Bhardwaj and Singh, seeking a stay on the ED probe ordered by the high court.
The Allahabad HC’s Feb 29 order had two key components — one on the ED investigation against the promoters and another asking the Authority to issue an occupancy certificate and execute a registered deed for homebuyers within a month.
Bhuwan Chaturvedi, president of the Lotus 300 AOA, said the registries hadn’t proceeded at all.
“The SC has given clear liberty to the investigating agency to proceed in keeping with the law. That means the clear stay granted by the apex court in the last hearing is diluted. Secondly, it has asked Noida Authority to explain its non-compliance of the HC order on registries through an affidavit,” he added.
ED, meanwhile, filed an impleadment application, saying it had gone through as many as nine FIRs registered against the developer company by Economic and Offences Wing in Delhi and filed its chargesheet alleging that the developer had diverted the hard-earned money of homebuyers.
The ED also alleged that the money collected from flat buyers of Lotus 300 was siphoned off to other entities such as Three C Universal Developers Pvt Ltd and Granite Gate Properties Pvt Ltd.
On the order on execution of registries, Noida Authority had told the HC earlier that it was unable to implement the order because of dues exceeding Rs 166 crore.
