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  • Writer's pictureDevesh Saxena

Recovery Order of NOIDA Authority stayed by Allahabad High Court.

Updated: Jun 16, 2021

Hon'ble Allahabad High Court has stayed the demand order issued by the NOIDA Authority in pursuance of Gajraj Judgement vide which it imposed the illegal demand of "64.7% Additional Compensation" upon the builder company despite the said demand being Contrary to Lease Deed entered into between the parties.

Also, the said demand is unlawful and arbitrary, in as much as, after the execution of Tripartite Sub-lease deed, Allotment Agreement and AOA Handover Agreement, the "allottees" of the present date are the individual Flat Owners, who are already paying the said demand directly to NOIDA Authority and thus, the said demand cannot be levied upon the Builder Companies.

The Hon'ble Court further observed that Gajraj judgment, by itself, doesn't accrue a right in favour of the NOIDA/Greater NOIDA to levy such demands upon the Builder Companies/Allottees.

The Petition was filed and argued by Adv. Devesh Saxena, Managing Partner, S&D Legal Associates.

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