Noida Authority Seals Lotus Panache Project in Sector 110: Unpaid Dues and Unauthorized Construction

The Noida Authority has taken a significant step to enforce compliance with the law, sealing three under-construction towers and 10 shops at the Lotus Panache group housing society in Sector 110. This action was taken due to the developer's failure to pay outstanding dues and continued construction activities despite the expiration of the sanctioned building plan.

The project, developed by Granite Gate Properties on Plot GH-5, spans 164,000 square meters and was approved for 31 towers and 4,018 units. The developer has been under scrutiny for multiple violations, including unauthorized construction and failure to clear dues amounting to ₹702.59 crore.

Lokesh M, the Chief Executive Officer of the Noida Authority, stated, “We have sealed these under-construction towers in Lotus Panache in sector 110 under our drive to recover our land cost dues from this housing project. We earlier also took action against this project as per the law.”

The project's developer, Granite Gate Properties, has been facing corporate insolvency resolution proceedings for several years. Despite this, the developer continued construction activities without valid approvals. In February 2024, the developer applied for revalidation of the building plan, but the Authority raised several objections and issued a detailed compliance list.

During the Corporate Insolvency Resolution Process (CIRP), the Noida Authority informed the appointed Resolution Professional (RP) through an official communication dated June 13, 2025, that the total dues between January 11, 2019, and June 30, 2025, amounted to ₹702.59 crore. The Authority also made it clear that no construction was to be carried out on the site until the building plans were formally revalidated.

However, despite repeated instructions and pending dues, the developer continued with on-site construction in violation of rules. Acting on this, a team of Authority officials conducted a sealing drive on November 12, during which three towers under construction and ten commercial shops were sealed.

“We will continue strict enforcement against developers flouting regulations, especially those operating without valid approvals or failing to meet their financial obligations. We have warned all allottees and developers to strictly follow rules and ensure timely payment of dues. Any unauthorized construction or violation of approved plans will invite immediate action,” the CEO added.

The legal steps may follow if the developer or the appointed RP fails to resolve the outstanding dues or secure necessary plan approvals within the stipulated period, said officials.

Lotus Panache welfare association president Amit Chauhan expressed his discontent, saying, “The Noida authority had sealed these flats earlier in their so-called drive. Now they again have sealed these towers. How can they take the same action twice in this drive? We will approach the Supreme Court for justice.”

NCLT-appointed IRP Davender Umrao was not available for comment despite repeated attempts.