The Lucknow bench of the Allahabad High Court has resolved nearly 150 Rera appeals that were submitted by the Yamuna Expressway Industrial Development Authority (YEIDA) against the allottees of its initial residential plot scheme from 2009, which encompasses approximately 21,000 plots located in Greater Noida’s Sectors 18 and 20.
The court affirmed the allottees’ claims, instructing YEIDA to settle outstanding dues along with interest for delays, while dismissing the authority’s request for a refund of pre-deposited sums. The three original residential plot schemes were initiated adjacent to the Yamuna Expressway. Allotments were dependent on land acquisition; however, development faced delays due to protests from farmers and legal challenges.
Furthermore, possession was postponed following a government order in 2014 that mandated an additional 64.7% compensation to farmers. Disputes re-emerged in 2021 when buyers requested possession and compensation for the delays from UP-Rera. YEIDA attributed these delays to ongoing litigation and proposed a 6% interest refund for those opting to withdraw. Additionally, it announced a ‘zero period’ from November 2013 to November 2016, during which installment payments were waived.
Initially, UP-Rera awarded 4% annual interest for delayed possession. However, in September 2023, the Appellate Tribunal revised this decision, instructing YEIDA to provide interest at MCLR plus 1% per annum after four years from the allotment date or after 75% of the total premium had been paid, whichever occurred later, until possession was granted or the occupation certificate (OC/CC) was issued.
The limits on interest claims for physical possession are set to the date when buyers take possession, and these directives are to be executed within 45 days; otherwise, buyers may seek enforcement through UP-Rera.A significant matter before the court involved the pre-deposit made by YEIDA in accordance with Section 43(5) of RERA. The Appellate Tribunal rejected YEIDA’s appeals and ordered that the full pre-deposit be transferred to the UP Real Estate Regulatory Authority for utilization in execution proceedings. YEIDA contended that the delays were outside its control, that buyers had gained from the appreciation of land prices, and that the pre-deposit should be refunded once the appeals were resolved.
The High Court scrutinized two principal legal issues: whether the Appellate Tribunal was correct in awarding interest at MCLR plus 1%, and whether the pre-deposit under Section 43(5) ought to be refunded to YEIDA or allocated towards the debts owed to allottees.
Referencing Supreme Court rulings, the court determined that pre-deposits constitute part-payment of the assessed liability and may be appropriated by the authority, with any surplus refunded only if the appeal is successful. The court further highlighted that under Section 18 of RERA, promoters are obligated to pay interest for delayed possession regardless of external circumstances if buyers seek refunds or compensation. The authority’s assertion of uncontrollable delays was dismissed. The tribunal affirmed that interest must be disbursed at MCLR plus 1%, referencing a RERA regulation that is applicable retroactively.
In delivering the judgment on October 15, Justice Pankaj Bhatia announced that all appeals are dismissed, thereby affirming the Appellate Tribunal’s directives concerning the appropriation of pre-deposits and the calculation of interest.
This ruling guarantees that homebuyers’ deposits and allotment rights are safeguarded under RERA and establishes a precedent for the enforcement of timely compensation and interest in analogous cases of delayed possession. According to YEIDA data, 9,865 plots were allocated in Sector 18 and 10,541 in Sector 20. Checklists have been issued for 16,562 plots, and approximately 12,000 have been registered by allottees. Around 1,200 completion certificates have been issued, yet over 13,400 plots are still pending checklists.
