Decade-old Wait For Flats Grows Longer, Real Estate News, ET RealEstate

July 15, 2023

NOIDA: Nearly 685 homebuyers who invested in the Ajnara Panorama project in Sector 22A have been waiting for possession of their flats and villas since 2012.

Despite having paid substantial amounts, ranging from 80–100%, the buyers rued they still had to pay rent as well as EMIs for the loans they had taken. The situation became more complex after the developer was brought under the purview of the National Company Law Tribunal (NCLT) last year.

The latest report prepared by the corporate insolvency resolution process (CIRP) said the construction at Ajnara Panorama could stall because of a severe funds crunch. The suspended management has engaged a contractor, but progress has been alarmingly slow.

Urgent funding is required to prevent further delays and ensure the timely completion of the project.

To sustain the operations of the corporate debtor, Ajnara, and complete its real estate projects, the report suggested generating revenue from existing homebuyers. Consequently, demands have been raised for the payment of due and overdue amounts based on the builder-buyer agreements executed with the homebuyers.

However, homebuyers have voiced their objections to the developer’s email communications, demanding the remaining amount of the total cost of flats and villas. They argued that the builder has already delayed the project by over a decade, with minimal progress seen in the last three years. Despite the project being under the supervision of the Insolvency Resolution Professional (IRP), progress has been agonisingly slow.

“Most of the homebuyers have already paid approximately 90% of the total cost to the developer. There is little guarantee that the developer will deliver after receiving the remaining payment. The developer has mismanaged funds, a fact emphasised in CIRP’s report. The amount the developer requires to complete the project is far greater than what the buyers owe,” said one of the affected homebuyers, Muneesh Fauzdar.

DK Sinha, another homebuyer who booked a flat in 2013 and was promised possession in 2016, shared concerns about adding to the financial burden on homebuyers without any resolution in sight.

“There is a need for financial closure for the project and a detailed plan on how it will be completed. Homebuyers should have the option of receiving refunds for this excessively delayed project. The developer has failed to secure external funds,” he added.

According to the report, demands of Rs 17.59 crore have been raised from homebuyers, but only around Rs 45 lakh have been collected so far.

A tower-wise assessment of the construction levels at the initiation of the CIRP and the present status reveals progress ranging from 2-7% in three towers and villas.

Ajnara has defaulted on payments amounting to Rs 42.82 crore to the Yamuna Expressway Industrial Development Authority (YEIDA). Consequently, YEIDA issued a cancellation notice for the lease deed last year. The developer responded by filing a writ petition with the Allahabad high court, leading the court to direct the payment of Rs 7 crore within a month while instructing YEIDA to refrain from creating third-party rights.

  • Published On Jul 15, 2023 at 09:22 AM IST

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