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The Gautam Buddh Nagar district administration has sealed the Noida office of real estate major Supertech Group over unpaid dues, as confirmed by Additional District Magistrate (Finance/Revenue) Vandita Shrivastav to ET Realty. The action follows recovery certificates issued by the UP Real Estate Regulatory Authority (RERA) against the group's Supertech Township entity. The builder group has labelled the administration's action as "illegal," stating that the office belongs to Supertech Limited, not Supertech Township.
Supertech Group argues that the sealing is unlawful since the company is under the Corporate Insolvency Process initiated by the National Company Law Tribunal (NCLT), and a moratorium clause prevents coercive recovery of dues until the resolution process concludes. The group also claims that sealing the office, including the Interim Resolution Personnel's (IRP) office, appointed by the NCLT, would amount to contempt of court.
The district administration's move has caused considerable inconvenience to homebuyers who need to visit the office for various requirements. However, the administration has maintained that the action was initiated based on the recovery certificates issued by RERA and followed due process. The sealing process reportedly began on Tuesday afternoon under the supervision of the tehsildar, Dadri.
The IRP has requested the district administration to de-seal the premises and plans to bring the matter to the NCLT or the Supreme Court. In August 2021, the Supreme Court ordered the demolition of Supertech Group's twin towers due to violations of building norms. This demolition marked a significant blow to the company's reputation and highlighted the need for stricter adherence to construction regulations.
The Supertech Group's dispute with the district administration is part of a larger pattern of tensions between real estate developers and authorities in India. Ongoing issues within the industry include delayed project deliveries, financial difficulties, and violations of building codes. These problems have led to increased scrutiny from regulatory bodies and the implementation of stricter measures to protect home buyers' interests.
Despite the challenges faced by Supertech Group and other developers, the real estate sector remains a critical component of India's economy. Ensuring the industry's stability and growth requires a delicate balance between safeguarding consumer interests and supporting developers. The ongoing dispute between Supertech Group and the district administration underscores the complexities of this balancing act and the need for transparent and fair regulatory enforcement.
In conclusion, the sealing of Supertech Group's Noida office has sparked controversy, with the company arguing the action's illegality and contemplating legal recourse. The ongoing dispute could potentially escalate to the NCLT or Supreme Court for resolution, highlighting the tense relationship between real estate developers and regulatory authorities. The incident serves as a reminder of the need for transparent and fair enforcement of regulations in India's real estate sector to protect both consumers and developers.
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