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Noida homebuyers not to be evicted, assures Union Bank of India

Around 10 families in Noida’s Gardenia Gateway society were served eviction notices on August 5 from the Union Bank of India over a Rs 78.45 crore unpaid loan from builder Gardenia India

Vandana Ramnani @vandanaramnani1

Residents of a builder society in Noida, who had received eviction notices from a PSU bank after the developer defaulted on a Rs 78.45 crore loan, have said that both the bank and the developer should “apologise for the harassment caused” and withdraw the notices in writing.

The bank's asset recovery branch, Delhi, stated in a communication to buyers that "we hereby inform you that the said intimation dated August 5, 2019, has been withdrawn with immediate effect".

The Union Bank of India, which had sent out the notices, told Moneycontrol that it would send out letters to about 10 homebuyers of the Gardenia Gateway project in Sector 75, Noida, by Wednesday evening withdrawing the notices.


“Homebuyers should rest assured that no legal action would be taken against them. We would be sending out letters to 10 homebuyers by today (August 14) evening withdrawing the eviction notice. We are recovering the amount from the builder and discussions are on. The builder has also come forward with an offer,” Rajkiran Rai G, MD and CEO of Union Bank of India told Moneycontrol.

A statement issued in the evening by the field general manager of the Union Bank said: “Whereas the intimation was served by the Union Bank of India, Asset Recovery Branch, on 05.08.2019 to few of the flat owners of Tower “D” at GH09, Eco City, Sector 75, Noida, stating that the Bank is contemplating Recovery action against the builder. We would like to clarify that any of our action is against the builder only and not against the Flat owners. Therefore, we have initiated steps to withdraw the notices immediately.”

Officials of the real estate firm Gardenia India Ltd have assured homebuyers that they would not be evicted and confirmed to Moneycontrol that "we had taken a construction loan from the bank and we were in the process of settling it."

"By mistake the banks had sent out the notices to buyers who have nothing to do with the loan. These notices have been withdrawn. We will be settling the full loan with the bank in the next two to three days," said Surendra Debal, additional director, Gardenia Gateway.

Over 200 families are living in the Gardenia Gateway housing project in sector 75, Noida since 2015. Some residents had received  notices on  August 5 to vacate the houses by August 20.

“This is to inform that inmmoveable property at group housing project at plot number GH 09 Sector 75 Eco City Noida, District Gautam Budha Nagar having area of 20,000 sq m is mortgaged as security for the repayment of credit facilities provided to Ms Gardenia India Ltd to the tune of Rs 78,45,22,970 as of Dec 31, 2015 and interest thereon.

“Since the borrower has defaulted in payment of the said amount, we have initiated action under Securitisation of Financial Assets and Enforement of Security Interest Act, 2002… since we are in the process of enforcing the above mentioned security under the Securitisation of Financial Assets and Enforcement of Security Interest Act, 2002 , we request you to vacate the premises within 15 days from the receipt of the notice to avoid any inconvenience,” the notice had said.

BS Lavania, president of the resident welfare association of the Gardenia Gateway said told Moneycontrol that “we would wait for the written response from the banks informing us that the eviction notices have been withdrawn and that it was a mistake. Else we would take legal action for the harassment caused to us.”

“Once buyers have taken possession of the housing unit after paying up 100 percent of the cost of the flat, they get a vested right in terms of law laid down in Amrapali judgment and banks cannot evict them. Banks can only pursue the builder and recover its dues from him. Once possession is given, homebuyers cannot be evicted,” said Mihir Kumar, an advocate.

Update: This story has been updated with the latest developments.

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First Published on Aug 14, 2019 04:12 pm
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