The Allahabad High Court recently decided to quash the order issued by the Uttar Pradesh Real Estate Regulatory Authority (RERA) against Larsen & Toubro (L&T), allowing the company to start the sale of apartments inside the Green Reserve project located in Sector 128, Noida. The organisation earlier issued an order restricting L&T from selling the apartments in the area.
In the order passed on October 1, a bench of Justice Mahesh Chandra Tripathi and Justice Prashant Kumar stated that RERA’s notice in declaring the sales of apartments illegal over the lack of registration does not abide by the laws of the country as the organisation failed to respond to the realtor’s application with the stipulated time of 30 days. The court referred to Section 5(2) of the RERA Act, stating if the authority fails to respond to the application within 30 days, then the project gets registered automatically.
Additionally, the court also rejected RERA’s argument, stating Jaypee Infratech Limited (JIL) should be named as the co-promoter of the project. The court mentioned that L&T is allowed to continue the advertisements for the sales of the apartments of the project and stated that no penalty could be imposed on the company, according to Section 3 of the RERA Act.
According to earlier reports, L&T received the rights for construction in July 2017 for Rs 487.5 crore. The agreement was signed with JIL which included the construction of four towers in the Green Reserve project. The court also directed RERA to issue the necessary registration number and other credentials to L&T.
It was noted that on May 8 this year, RERA issued a notice to the realtor, stating that the company had violated Section 3 of the RERA Act by allowing a private agency to advertise the Green Reserve project on its website. L&T challenged this notice in the high court arguing that the project should get registered automatically as the authority failed to formally respond to its application within 30 days.
