The Noida Authority on Wednesday sealed three under-construction towers and ten commercial shops at the Lotus Panache group housing project in Sector 110, citing non-payment of land cost dues amounting to ₹702.59 crore and continuation of construction despite the expiry of layout approvals.
The action forms part of the Authority’s ongoing drive to recover long-pending dues from defaulting developers and to curb unauthorised construction across the city.
“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 drive was conducted against Granite Gate Properties, the developer of the group housing project built on Plot GH-5, spread over 164,000 square metres. The project, approved for 31 towers and 4,018 residential units, has faced repeated enforcement measures over multiple violations.
Officials said that the developer, currently undergoing corporate insolvency resolution proceedings, continued construction activities even after the expiry of its sanctioned layout and building plans.
The developer had not paid dues amounting to ₹702.59 crore between January 11, 2019, and June 30, 2025, and had not obtained a valid revalidation of its building plan, as per the Authority.
Granite Gate Properties sought plan revalidation in February 2024. However, the Authority raised several objections and demanded detailed compliance. In the meantime, the company went bankrupt, and a Resolution Professional (RP) was appointed to oversee its management as per the Corporate Insolvency Resolution Process (CIRP).
While the insolvency was going on, the Authority formally conveyed to the RP that construction could not be allowed to continue until the dues were cleared and the plan revalidated. Notwithstanding this, the Authority observed that construction activities were going on at the site, thereby flouting the order.
In response to this, the officials' team proceeded with a sealing operation on November 12 when three towers and ten shops under construction were sealed.
Residents of the project have expressed frustration over the latest action, questioning the Authority’s decision to seal towers that had already been targeted earlier.
“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,” said Amit Chauhan, President, Lotus Panache Welfare Association as per Hindustan Times report.
Officials confirmed that this is not the first time the project has faced sealing. Three towers were sealed earlier for similar violations. The Authority maintains that enforcement is necessary due to continued non-compliance and ongoing financial irregularities.
“The developer is not controlling this project because it is facing corporate insolvency resolution process for the last many years,” an official said. “We will continue strict enforcement against developers flouting regulations, especially those operating without valid approvals or failing to meet their financial obligations.”
The Authority stated that legal proceedings may follow if the developer or the appointed RP fails to resolve the outstanding dues or secure necessary revalidation of the building plan within the stipulated timeframe. “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,” added CEO Lokesh M.
Background: The Lotus Panache Project
Initially, the Lotus Panache project was envisioned as a massive group housing development with 31 residential towers, community facilities, and commercial spaces. Eventually, it got caught up in a mess of money and legal problems after the developer went bankrupt and there were some breaches of regulations.
Such instances are symptomatic of the difficulties faced by the real estate market in Noida, which is riddled with numerous projects that have either been stalled or are insolvent, thus resulting in the buyers of the apartments who are left waiting indefinitely for the handing over of the possession, while the officials are engaged in the process of recovery and enforcement.
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