Noida authority seals part of Lotus Panache project in Sector 11

“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,” said Lokesh M chief executive officer (Noida authority) .

The action was taken against Granite Gate Properties, the developer of the group housing Project on Plot GH-5, spread over 164,000 square metres (sqms). 

The project, approved for 31 towers and 4,018 units, has been under scrutiny for multiple violations, including continuation of construction despite the expiry of its sanctioned building plan. The developer is not controlling this project because it is facing corporate insolvency resolution process for the last many years, said officials.

The Authority said the developer failed to clear outstanding dues amounting to ₹702.59 crore and continued construction activities even after the validity of its approved layout expired.

Officials confirmed that this was not the first instance of enforcement — three towers of the same project had been sealed earlier for similar violations.

In February 2024, the developer had applied for revalidation of the building plan, but the Authority raised several objections and issued a detailed compliance list. Meanwhile, the project came under insolvency proceedings, and a Resolution Professional (RP) was appointed to manage its affairs.

During the course of the Corporate Insolvency Resolution Process (CIRP), the Noida authority informed the 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 unauthorised 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 said, “The Noida authority had sealed these flats earlier in their so-called drive. Now they again have sealed these towers. How can they take 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.