NOIDA: The Uttar Pradesh government’s industrial development department has scrapped the Noida authority’s demand notice issued against the realty firm- Omaxe Buildhome. It also directed the authority to recalculate the dues amount after offering the developer a “zero period” (waivers on interest) benefits for several towers of its projects in sector 93 B.
UP additional chief secretary Alok Kumar has directed the authority to rework Omaxe’s dues within four weeks after allowing zero period from March 2018 to May 2025 for towers 23 to 27, which include all three Forest Spa towers and two additional towers planned on the adjoining plot, said the order.
When asked about the repercussions of the order, Noida authority CEO Lokesh M said, “We will look into it once we get the communication about the order officially.”
The authority had in 2006 allotted the Omaxe three group housing plots measuring close to 2 lakh sqm in 2006, with an approved floor area ratio of 1.5.
The developer had completed 85% of the sanctioned work in Towers T1 to T22 of the Grand Omaxe project and received a partial completion certificate in 2011. However, after Noida revised its building by-laws in 2010 to raise FAR to 2.75, Omaxe purchased an additional 0.5 FAR and obtained approval in 2013 to construct Towers 23 to 27.
The revised layout triggered a series of litigations from residents, and courts issued multiple stay orders halting the construction.
Omaxe argued before the industrial department that these prolonged stays locked up more than 30% of the project’s usable area and sought zero period benefits from 2015 to 2025. The authority countered that zero period could only be granted for towers directly covered by stay orders and for the exact duration of those stays.
It also claimed that a 2018 stay affecting the Forest Spa towers was caused by Omaxe’s unpaid dues. The developer, however, said it had already paid ₹415 crore against an original premium of ₹268 crore and deposited ₹93 crore under the state’s 2023 rehabilitation scheme for stalled projects.
The government then agreed with the developer, holding that the dues dispute arose not from wilful default but from differing interpretations of zero period. It concluded that zero period could not apply to the fully completed Grand Omaxe towers but must apply proportionately to Towers 23 to 27, especially since Noida’s own March 2018 order had stopped construction and blocked handovers until 2025.
The latest relief comes months after the Allahabad High Court allowed registries for 220 flats in Grand Omaxe and Forest Spa following Omaxe’s payment of dues.
Omaxe Group did not reply to any HT calls and messages.
The government then agreed with the developer, holding that the dues dispute arose not from wilful default but from differing interpretations of zero period. It concluded that zero period could not apply to the fully completed Grand Omaxe towers but must apply proportionately to Towers 23 to 27, especially since Noida’s own March 2018 order had stopped construction and blocked handovers until 2025.
The latest relief comes months after the Allahabad High Court allowed registries for 220 flats in Grand Omaxe and Forest Spa following Omaxe’s payment of dues.
Omaxe Group did not reply to any HT calls and messages.