Builder defaults on Rs 78 cr loan, Noida flat owners get eviction notice

Around 200 families living in Noida housing project ‘Echo City’ in Sector 75 have been served eviction notices by Union Bank of India as the developer, Gardenia India Ltd, has failed to pay a loan of Rs 78.45 crore.

“Althought eviction notices were pasted outside five flats on August 5 asking people to leave by August 20, the team from the bank asked all of us to leave as the builder had defaulted on a loan. We have written to the Noida authority and other government agencies for help,” said BS Lavaniya president of flat buyers association, which is yet to be registered formally.

Buyers said that they shifted into this partially-completed housing project in 2015 after the builder failed to finish it as per the schedule. This housing project is yet to obtain occupancy certificate without which the builder cannot offer possession to buyers.

“The Gardenia India Limited could not obtain OC because it defaulted on payment of around Rs 50 crore land dues. Without clearing the land dues the authority cannot issue OC to a housing project,” said a Noida authority official, requesting anonymity.

The Union bank India said that as per process they have issued notices for eviction.

“We have issued notices to flat buyers only after the Gardenia India Limited repeatedly failed to pay our loan amount of around Rs 100 crore. The Gardenia India Limited had on December 31, 2015 obtained a loan of Rs 78.45 crore with an annual interest of 16%. And it failed to repay this loan. We are following rules in recovering our loan from the property,” said Diwakar Chaudhary debt recovery officer with Union Bank of India.

The Gardenia India Limited management said that they are trying to resolve this issue at the earliest.

“We have been resolving this issue with the banks. It will be soon resolved,” said Manoj Rai one of the directors of the Gardenia India Limited.

Source : Hindustan Times