Noida Authority cancels lease of a plot linked to Amrapali Group
The Noida Authority on Thursday cancelled the lease deed of a plot linked to real estate developer Amrapali Group. The Authority had issued a show-cause notice to the plot owner, M/s Navodaya Properties Private Limited, when the property was put up for online auction by Corporation Bank, which holds a Rs 9.10 crore mortgage on it.
The Authority’s logic was that the property being leasehold, both the allottee and the bank were duty-bound to seek its permission before holding the e-auction. Officials said that the Noida Authority will soon take over the property — plot number 37, Block C-56 in Sector 62.
The plot was transferred to Navodaya for its corporate office on March 21, 2007, from previous owner Kabir Overseas. The plot houses the corporate building of Navodaya’s parent concern, Amrapali Group. On February 14, 2011, Amrapali Group put the property out on mortgage to Corporation Bank, for a loan of Rs 9.10 crore in the name of Ultra Home Construction Private Limited.
According to the Noida authority, the Corporation Bank has no right to auction the property and the authority has the first right on it, which is clearly specified in the lease deed.
However, Shiv Priya, director of Amrapali Group, said that the National Company Law Tribunal (NCLT) has admitted the case and it could put a stay on the lease cancellation by Noida Authority.