NEW DELHI: The Supreme Court on Thursday blamed Noida and Greater Noida authorities for creating "havoc" in real estate by turning a blind eye to illegal activities of builders who have cheated homebuyers over the years. A bench of Justices Arun Mishra and U U Lalit said officials of authorities were hand-in-glove with builders and slammed them for not raising their claim. The court said the present situation, where thousands of homebuyers are fighting for their homes, would not have arisen if the authorities had kept a watch on the activities of builders.
"What havoc have you created?... You are virtually conniving with the builders. All the housing projects could have been completed as the money deposited by home-buyers was more than the cost of construction. You did not take any action against them for violating the lease agreement. Your officers had taken money and obliged the builders. Nowhere in the world a builder is given land on mere payment of 10% of the cost and now you want to recover the rest of the amount," the bench said when the authorities told the court that their interests should also be protected along with that of home-buyers. The court said construction of building was done out of homebuyers funds and the buyers' interest had to be protected first.
It hinted that the interest of homebuyers had to considered first and those of Noida authorities and banks, which had given loan to Amrapali, could not be given primacy. "Buildings belong to homebuyers as it was constructed from their funds. You are now claiming that your dues be cleared after the builder washed off its hands. It has to be examined," the bench said.