Noida Authority shuts the assets of Prateek Realtors due to Financial Dues

The Noida authority has taken strict action against realtors who has failed to clear their financial dues, sealing properties and suspending an official for negligence on Saturday, the civic body officials said on Sunday.

In the first instance, the authority has sealed three shops belonging to Prateek Realtors India Private Limited in Sector 120 after the company failed to pay Rs.50 crore in dues, despite multiple notices. They further added that,’in a related move, an assistant in the authority was suspended for failing to act promptly against the Saha Group, another defaulter realty firm’.

Mr.Lokesh M. who is the Chief Executive Officer,Noida Authority,has said that,’’ “We issued a notice to Prateek Realtors India Private Limited to pay Rs.12.62 crore, which is 25% of their total dues of Rs.50.49 crore. The realtor has only paid Rs.1.5 crore so far and failed to clear the remaining amount’’.

The Noida authority has allotted land to Prateek Group for a housing project in 2009, with a lease deed executed in January 2020. Under a state government policy issued in December 2023 to resolve issues with stalled legacy housing projects, developers were allowed to avail of interest waivers for the COVID-19 pandemic period, provided they paid 25% of their dues upfront, with the balance to be paid in instalments over 1-3 years. Despite the policy, Prateek Realtors failed to settle the Rs.50.49 crore dues, prompting the sealing of three commercial shops within their Sector 120 project, Noida authority officials has claimed.

The promoter of Prateek Group, Prashant Kumar Tiwari, did not respond to any queries . In a separate case, the authority suspended an assistant for not following instructions by senior officers and neglecting to act on time against MMR Saha, which owns a commercial plot in Sector 52.

This follows prior action by the Noida authority against at least for six other developers who have failed to comply with the state government’s interest waiver scheme. These developers, like Prateek Realtors, have been unable to obtain no-dues certificates, which are necessary to proceed with the registry of apartments for homebuyers.