Now Reading: Allahabad High Court limits zero-period relief for developer
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Allahabad High Court limits zero-period relief for developer
The Allahabad High Court has ruled that a developer which knowingly accepted a lease for only part of an allotted plot cannot claim zero-period relief for the entire land. The concession waives…
The Story in Brief
The Allahabad High Court has ruled that a developer which knowingly accepted a lease for only part of an allotted plot cannot claim zero-period relief for the entire land. The concession waives interest and penal interest and shifts instalments for periods covered by government orders. Justice Saurabh Shyam Shamshery held that the developer was aware in 2012 that Yamuna Expressway Industrial Development Authority did not possess the remaining land.
YEIDA had allotted 414,538 sq metres in Sector 22D to a consortium led by Sunworld City, but leased 263,483 sq metres after the developer agreed to take the available area while awaiting the rest. No construction began. The court accepted that zero-period relief could apply, but not in its entirety, despite YEIDA’s own failures.
The Indian Opinion
The easy story here is either that authorities can escape responsibility by citing an as-is clause, or that developers deserve blanket relief whenever land delivery fails. The record supports neither claim. YEIDA’s delays and possession problems matter, but so does the developer’s decision to sign for a smaller area with knowledge of the gap. The practical test is whether future orders match relief to the period and land actually affected, rather than grant a blanket waiver.
Source: livelaw.in
This story was synthesised by AI from the source linked above.
