UP REAT Orders Godrej Promoter to Pay Delay Interest, Refund Charges to Homebuyers
Uttar Pradesh Real Estate Appellate Tribunal directs Godrej Crest promoter to compensate buyers for project delays, refund club and golf course charges, and investigates GNIDA’s approval process.
The Uttar Pradesh Real Estate Appellate Tribunal (REAT) has issued a landmark order directing the promoter of the Godrej Crest residential cluster in Greater Noida’s Sector 27 to pay interest to homebuyers for project delays and refund charges collected for the township’s master club and golf course facilities.
The tribunal, chaired by Justice Suneet Kumar with administrative member Rameshwar Singh, dismissed six appeals filed by AR Landcraft LLP, the promoter of Godrej Crest, which forms part of the 100-acre Godrej Golf Links township, against a previous UP RERA order dated March 7, 2024.
In addition to the delay interest, the promoter is required to execute a correction deed to include missing particulars in the registered tripartite sub-lease deed. The tribunal also imposed a litigation cost of Rs 50,000 per respondent, instructing payment within 45 days, and asked UP RERA to consider penal action under the 2016 Real Estate (Regulation and Development) Act.
The tribunal noted that the promoter had engaged in “fraudulent and unfair practices” since the inception of the project, describing the violations as systematic rather than isolated incidents affecting all homebuyers.
Regulatory Probe Ordered
A significant portion of the order focuses on the role of the Greater Noida Industrial Development Authority (GNIDA) in granting project approvals. The tribunal has directed the regulatory body to submit the full Recreational Entertainment Park (REP) Scheme record, sanctioned layout maps, and sub-lease documents to the Principal Secretary, Housing and Urban Development, UP, within 45 days.
The principal secretary has been tasked with conducting a thorough, independent review to determine whether GNIDA flouted statutory norms to benefit the promoter, after hearing from the developer, UP RERA, and representatives of the allottees. The tribunal stressed that this inquiry should independently assess compliance with statutory procedures for recreational green areas and the REP Scheme.
