Supreme Court Stays ED Probe in Noida Housing Project

Noida, Jun 12 (PTI) The Supreme Court has ordered an interim stay on a direction of the Allahabad High Court for an Enforcement Directorate probe into financial transactions linked to Noida's luxury housing project Lotus 300.

A vacation bench of justices Sanjay Kumar and Augustine George Masih passed the order on Tuesday.

Earlier on February 29, the Allahabad High Court had ordered the ED probe into alleged financial irregularities linked to the incomplete housing project Lotus 300 in Noida's posh Sector 107.

The land was allotted to Hacienda Project Private Limited (HPPL), a consortium of companies with Pebbles Infrotech as lead member, to develop Lotus 300, with 3C as its parent company.

The high court had also slammed the local Noida Authority, berating it for "gross negligence" in taking any steps or even ascertaining status of payment towards its dues for over a decade has led to ballooning of its dues, which is approximately Rs 166 crore as of today (February 29).

"Pending further orders, there shall be interim stay of the direction of the High Court contained in paragraph 114. However, all parties concerned shall endeavour to ensure that the direction of the High Court in paragraph 117 is duly implemented within time," the Supreme Court bench stated in its order.

The paragraph 114 of the high court order pertained to ED probe against all the directors, promoters, designated promoter, officer who is in default, companies, other entities in which money from HPPL is "syphoned or parked".

"These entities or people are directed to cooperate in the investigation and if they do not cooperate in the investigation then ED would be free to take any appropriate action against them as available under the law," the high court had ordered.

"The ED will make all sincere efforts to recover the said amount and pay off all dues of all the creditors," it had stated.

In the paragraph 117 of the order, the high court had directed the Noida Authority to issue occupancy certificate or part-completion certificate, as the case may be, and to execute tripartite agreement and registered deed in favour of flat buyer within a month.