A real estate company that defaulted on its promises to deliver on their promises to house buyers saw their properties worth Rs 32 crores confiscated in Noida.
This action has come closely on the heels of two other high-profile default cases involving property developers Jaypee and Amarpali.
In the latest instance, complaints against developers of Lotus Panache located in Sector 110 led to the crackdown.
Two properties of the company have been confiscated by the Gautam Buddh Nagar administration to recover Rs 34 crore to pay off homebuyers in the company’s project.
The company has claimed that it is a “security deposit” that they have kept with the administration.
The action against the builders was taken by the National Consumer Disputes Redressal Commission (NCDRC) after the Welfare Association cited undue delay and non-payment of compensation.
The two properties, which were confiscated by the authorities in Sector 127, would now be auctioned to recover the dues.
It was in 2009 and 2010 homebuyers started investing in Lotus Panache, which was scheduled to be delivered in 2012.