Around 500 homebuyers of 3C Lotus City project in Sector 22A, along the Yamuna Expressway, are set to get relief as the Yamuna Expressway Industrial Development Authority (Yeida) has resolved a legal case pending before the National Company Law Appellate Tribunal (NCLAT), paving the way for construction to begin at the site.
Realty firm ACE Infracity Developers Private Limited, which on June 13, 2023, took over this project in a bidding by the National Company Law Tribunal (NCLT), mutually reached an agreement with Yeida on a dispute over financial dues.
“We informed ACE that it needs to pay the Yamuna authority Rs 299 crore in land cost dues, including Rs 80 crore towards paying 64.7% hiked land compensation to farmers, and ACE agreed to pay this amount. As a result, the ongoing litigation in NCLAT stands withdrawn, much to the relief of homebuyers who have been suffering for the past many years. Now ACE can take over the project, resume construction work and deliver flats to buyers,” said Arun Vir Singh, chief executive officer, Yeida.
The 3C Lotus City project was launched in 2012 on 100 acres. The realty firm promised buyers possession by the end of 2024. The firm carved out 150, 250 and 500 square metres plots on 50 acres of land, with the remaining 50 to be developed later. However, farmers refused to let the developer take possession of the land, demanding 64% increased land compensation, and they continued to engage in agricultural activities on the land.
Yeida, on July 4, 2023, decided to challenge the NCLT’s order of June 13, 2023, regarding the takeover of bankrupt 3C Lotus City project by ACE, officials said. According to the resolution plan, ACE wanted to acquire the 100 acre project for Rs 67 crore that they would pay to farmers as 64% hiked compensation for their land. Yeida CEO said they realised that the resolution plan submitted by ACE was not in the authority’s best interests, prompting them to file plea in NCLAT. Since then, the case has remained pending thereby delaying the project, and causing worry to homebuyers, said Yeida officials.
“As per the state government’s December 21, 2023 policy, we offered interest rebates if the case in NCLT or NCLAT is withdrawn. The land cost dues of Rs 506 crore was brought down to Rs 299 crore and ACE was informed that if it paid that amount, we will withdraw the case before NCLAT in order to protect the interest of both homebuyers and farmers,” said Singh.
“We have agreed to the terms of Yeida and we will pay the land cost dues, including the farmers’ hiked compensation. We agreed to the terms because we want to deliver homes to buyers, and also pay the compensation to farmers. Litigation would have delayed the process causing problems to all stakeholders,” said Ajay Chaudhary, chairman and managing director, ACE.
