While the property prices have skyrocketed in the past few years, the real estate sector continues to deal with troubles accumulated over the years. The Noida Authority has lodged a complaint with Delhi Police’s Economic Offences Wing (EOW) against real estate developers Shubhkamna Buildtech and IVR Prime Developers for failing to clear dues and allegedly diverting funds collected from homebuyers.
The Authority has accused the promoters of financial misappropriation, stating that despite collecting payments from buyers, they did not fulfill their financial commitments.
According to Noida Authority CEO Lokesh M, Shubhkamna Buildtech’s promoters—Mukesh Khurana, Diwakar Sharma, Kamal Singh Rothan, Harish Kumar, and Piyush Tiwari—created third-party rights by selling flats in their group housing project, Shubhkamna Tech Homes in Sector 137 Noida, without clearing land dues. The project, comprising 692 flats, has yet to receive an occupancy certificate, with outstanding dues exceeding Rs 165 crore.
In the Ajnara Ambrosia project in Sector 118 Noida, IVR Prime Developers (formerly IVRCL Infrastructure) were allotted 1.3 lakh square meters of land for 4,065 flats, of which only 3,385 units were built and remain unregistered. The developer owes Noida Authority over Rs 660 crore. The Authority has accused its promoters, including Ila Reddy, E Sudhir Reddy, K Ashok Reddy, R Balrami Reddy, E Sunil Reddy, TN Chaturvedi, RC Sinha, TRC Bose, and Ashish Dhawan, of creating third-party rights and misusing collected funds. The project is facing issues as the developer partner for the project Ajnara Ambrosia is going through the insolvency process.
Additionally, a recovery notice of INR 57.6 crore has been issued against Sethi Buildwell for the Sethi Max Royal housing project in Sector 76 Noida. Of the approved 726 flats, only 455 have been registered, while 281 remain unregistered. Officials noted that the developer enrolled in the state’s rehabilitation scheme for stalled projects but failed to deposit 25% of the recalculated dues upfront, as required.
Earlier this week, the Noida Authority directed the district magistrate to recover dues as land revenue through a recovery certificate.
The Authority had in September 2024 requested the EOW to audit and monitor fund utilization by defaulting developers. Final notices were issued to seven developers, including IVR Prime, directing them to settle a cumulative land dues amounting to Rs 1,035 crore.
In November 2024, Noida Authority had filed a complaint against Logix City Developers Pvt Ltd for Rs 666 crore in outstanding dues related to its Blossom Zest project in Sector 143 Noida.