Parsvnath owner cancels LOA

The land owner of Parsvnath Exotica project in Ghaziabad has cancelled the power of attorney (POA) for the land and has sent a legal notice to Parsvnath Developers to vacate the occupied land within one month. The developer, however, has said the cancellation of POA by Devidayal Aluminium Industries (DAIPL), the landowners for the project, is illegal. The 31-acre land parcel, on which the Parsvnath Exotica project is proposed to be built, belongs to Devidayal Aluminium Industries, and was given to Parsvnath in 2004 on a revenue sharing basis. The agreement was renewed in December 2010, where the builder got three years to complete the project. On failing to even start the construction within the said time period, the land owner gave a six-month grace period to the builder for the construction and completion of project. Devidayal Aluminium Industries finally revoked POA by registering the cancellation deed in the office of Sub Registrar Ghaziabad on June 29 this year. "We cancelled the POA as the developer has not able to complete the said development in the prescribed time frame. Parsvnath has also did not pay the duty on POA," said Raj Kumar Aggarwal, managing director, Devidayal Aluminium Industries. Parsvnath Developers, however, in its response said, "The purported cancellation of POA by Devidayal Aluminium Industries (DAIPL) is illegal as the POA was executed for valuable consideration and unilateral cancellation of POA is not valid in the eye of law and is not binding on the company. We are in the process of sending a suitable response to the Legal Notice." The Ghaziabad Development Authority (GDA) also on July 13 has written to Parsvnath, a copy of which is with ETRealty, denying its request to approve the revised plans for its Exotica project till the matter is sorted out. According to Parsvnath, the revised building plans have not been released by Ghaziabad Development Authority due to acts and omissions on the part of DAIPL. The company, however, claims it is still ready to complete the project within the period of one year from the date of release of revised building plans by GDA. The 31-acre Parsvnath Exotica project, which was launched in 2007, has been mired in controversies and has not been completed yet. The National Consumer Disputes Redressal Commission (NCDRC) in May last year had asked Parsvnath to refund the entire amount paid by 70 home buyers in its Ghaziabad project with 12% interest for delay.