Sport City flats handed 5 years ago, but registry delayed, buyers move HC – ET LegalWorld

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A group of 44 homebuyers from Gaursons Sportswood — a residential project in Sector 79 — has filed a writ petition in the Allahabad high court, seeking registration of their flats that were handed to them five years ago.

Unlike other housing projects — where registries are mostly marred by mounting dues — the delay in Sportswood is because of violation of the agreement.

Launched in 2010, the Sportswood towers are part of Noida Authority‘s ambitious Sports City project — under which 70% of the land was to be set aside for sports infrastructure and the remaining designated for residential and commercial development.

Four consortiums were allotted land by the Authority, with Xanadu Estate Pvt Ltd leading the development across sectors 78, 79, and 101. Xanadu subsequently subdivided the land into 16 parts, distributing them among different real estate developers within the consortium, including Gaursons.

The project hit a hurdle when a 2019 audit by the Comptroller and Auditor General (CAG) identified several irregularities, including incomplete sports amenities that were supposed to come up on 70% of the allotted land.

The findings prompted the Authority to suspend approvals of revised maps, stall occupancy certificates and registry applications for all Sports City projects in Jan 2021.

The Sportswood buyers mentioned in their petition that the registry of their flats should be allowed because they had paid the full cost, including stamp duty.

Sanwarjeet Dasoundi, one of the petitioners, pointed out that Sportswood had even received a temporary completion certificate in March 2019 after meeting construction requirements, prompting the developer to hand over flats. Gaursons was even given a no dues certificate since it cleared payments with the Authority.

“But the developer failed to secure a permanent completion certificate because of unresolved policy issues related to the broader Sports City project. According to UP-Rera guidelines, completion certificates are deemed approved if not processed by the authorities after seven days. Yet, our registry process stays stalled,” he told TOI.

“Homebuyers have fulfilled all financial obligations, including farmer compensation, utility charges and stamp duty. But Noida Authority and the developer have failed to facilitate sublease registrations,” another petitioner said.

The writ petition — filed under Article 226 of the Constitution this month itself — argued that the registration delay violated the buyers’ fundamental rights. It urged the court to nullify the condition linking sublease registration with permanent completion certificates so that the registries could proceed based on existing approvals.

The homebuyers said they were severely impacted by the registration delay, which prevented them from selling or transferring their properties without formal ownership documentation. This limitation, they said, has also created financial hardships and restricted the buyers’ ability to leverage their investments.

What has compounded their concern is the possibility that circle rates in the city are expected to increase by 30% — which would significantly raise registration costs when the process eventually resumes.

On Friday, the bench of Justices Manoj Kumar Gupta and Anish Kumar Gupta sought a response from the Authority on the buyers’ concerns and scheduled the next hearing for Jan 10, 2025.

The case’s outcome could set a precedent affecting not only the 44 petitioners but also thousands of other homebuyers in Sports City projects facing similar challenges. The Sportswood project alone has 800 homebuyers.

  • Published On Dec 15, 2024 at 10:20 PM IST

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