Court directs demolition within two months, imposes ₹25 lakh penalty on builder and orders refunds to affected buyers with 10% interest
By The Realty Times | Real Estate News Services
Ghaziabad :
In a major ruling against unauthorised construction in the real estate sector,
the Allahabad High Court has ordered the demolition of two 10-storey
residential towers at the Gulmohar Greens housing society in Ghaziabad. The
court also directed the demolition of unauthorised additional floors in four
other towers, imposed a ₹25 lakh penalty on the builder and ordered criminal
proceedings against the project promoter.
The judgment, delivered by a division bench comprising
Justice Saral Srivastava and Justice Sudhanshu Chauhan, is a significant
development for homebuyers and real estate developers, highlighting the legal
consequences of violating sanctioned building plans and the responsibility of
development authorities to enforce construction regulations.
According to reports published on October 28 and 29,
2026, the court directed the Ghaziabad Development Authority (GDA) to demolish
the disputed structures within two months. The order followed petitions filed
by residents and the Gulmohar Greens Residents Welfare Association challenging
approvals granted for unauthorised construction.
Two Towers to Be Demolished
The court has ordered the complete demolition of
Towers 27 and 28 at Gulmohar Greens. It has also directed the removal of the
ninth and tenth floors of Towers 16, 17, 18 and 19, which exceeded the
originally sanctioned building plans.
The two towers marked for complete demolition
reportedly contain around 80 unoccupied flats. The unauthorised floors in the
four other towers account for 32 flats that are still under construction.
The GDA has been instructed to carry out the
demolition within the prescribed period, with the police and district
administration providing the necessary security and assistance. The court has
also permitted the authority to recover the demolition expenses from the
promoter as arrears of land revenue.
Court Rejects Approval for Unauthorised
Construction
The dispute centres on the builder's alleged
deviations from the originally approved building plans and subsequent attempts
to regularise the additional construction.
The project was initially planned for 34 towers
comprising 904 residential units. However, residents alleged that additional
units and structural changes were introduced without the necessary legal
approvals and consent from apartment owners.
The court set aside the GDA's third compounding order,
dated December 18, 2024, which had sought to regularise the disputed
construction. It held that the deviations were not legally eligible for
regularisation.
In its judgment, the court also criticised the conduct
of officials at the development authority, finding serious lapses in the
approval process. The ruling underscores that payment of a compounding fee
cannot automatically legalise construction that violates applicable
regulations.
₹25 Lakh Penalty and FIR Against the
Promoter
The High Court directed the promoter, Friends Land
Developers, to deposit ₹25 lakh with the Gulmohar Greens Residents Welfare
Association within one month.
It also ordered the registration of a First
Information Report (FIR) against the promoter within two weeks in connection
with alleged fraud, misrepresentation and violations of the Uttar Pradesh
Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010.
The investigation is to be conducted by a senior
police officer of at least the rank of Additional Commissioner of Police.
The court further directed the state government to
initiate disciplinary proceedings against the former GDA vice-chairperson who
approved the disputed building-plan regularisation. It also ordered action
against a police investigating officer over alleged failures in an earlier
investigation.
These directions reflect the court's concern about the
accountability of both private developers and public officials involved in
approving and monitoring real estate projects.
Refunds for 85 Buyers Over Alleged Sale of
Common Areas
In another significant part of the judgment, the court
addressed allegations that common areas within the residential society had been
sold to 85 buyers.
The court directed the authorities to constitute a
three-member committee to identify the affected areas and assess the
construction costs, where applicable.
The promoter has been directed to refund the sale
consideration paid by the affected buyers, along with the assessed construction
costs and interest at 10% per annum from the dates of payment.
The court also directed that any construction found to
have been raised on the affected common areas be removed and that the areas
subsequently be handed over to the society.
The directions are intended to address the financial
and property-related consequences faced by residents as a result of the
disputed transactions.
GDA Also Held Accountable
The High Court imposed costs of ₹50,000 on the
Ghaziabad Development Authority for each of the 11 petitioners, payable within
the stipulated period.
The court criticised the authority's handling of the
case and observed that residents had been forced to endure prolonged disputes
and legal expenses because of alleged regulatory failures.
The case raises broader questions about the
effectiveness of building-plan scrutiny, the monitoring of construction
activity and the process through which unauthorised deviations are approved or
regularised.
Project Remains Incomplete After Years
The Gulmohar Greens dispute also highlights the
difficulties faced by homebuyers when residential projects remain incomplete or
lack the required completion certificates.
The court noted that the project had a long history of
construction and approval-related disputes. It expressed concern over the
promoter's failure to obtain a completion certificate, despite the legal
obligations applicable to the project.
For homebuyers who invest their savings or take
substantial housing loans, delays and disputes of this nature can create
serious financial pressure. Residents may be required to service their home
loans while simultaneously dealing with uncertainty over the legal status,
completion and safety of their homes.
A Warning for Developers and Homebuyers
The ruling is likely to renew discussions about
compliance and accountability in India's real estate sector. It reinforces the
importance of obtaining valid approvals, adhering to sanctioned plans and
protecting the rights of existing apartment owners.
For developers, the case illustrates that unauthorised
construction may result in demolition, financial penalties, refund obligations
and criminal investigation. For planning authorities, it highlights the need
for transparent approvals and effective enforcement of building regulations.
Homebuyers, meanwhile, should undertake due diligence
before purchasing property. This includes checking sanctioned building plans,
the applicable occupancy or completion certificates, the legal status of common
areas and the project's approvals with the relevant development authority.
The Allahabad High Court's decision in the Gulmohar
Greens case sends a strong message that unauthorised construction cannot
necessarily be legitimised through subsequent administrative approvals. With
demolition, refunds, penalties and investigations ordered, the case serves as
an important reminder that protecting homebuyers requires accountability from
both real estate developers and regulatory authorities.
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