Court dismisses writ petition challenging the grant of additional Floor Area Ratio, emphasizing statutory compliance and majority support.
In a significant ruling, the Allahabad High Court has dismissed a writ petition filed by the Great Value Sharanam Apartment Owners Association challenging the grant of additional Floor Area Ratio (FAR) to a residential project in Noida. The court upheld the decision of the Noida Authority to grant additional FAR, emphasizing that the statutory requirement of majority consent from apartment owners was fulfilled.
The petitioner association argued that the additional FAR, sanctioned on December 19, 2024, was illegal as it was granted without valid and informed consent from apartment owners. They contended that the builder had obtained consents through coercion and that the consents were outdated and lacked specific information about the proposed construction.
However, the court observed that a substantial majority of apartment owners, 978 out of 1,440, had provided valid consents, as verified by the Noida Authority. The court noted that none of the consenting apartment owners had independently challenged their consents, and therefore, the association could not retrospectively invalidate these consents on behalf of the owners.
In its detailed judgment, the court emphasized that the land in question had been consistently designated for "future development" since the inception of the project. The court rejected the petitioner’s argument that unanimous consent was required, citing the precedent set by the Allahabad High Court in the Designarch Infrastructure case, which clarified that majority consent suffices for the utilization of additional FAR.
The court further noted that the Noida Authority had followed due process by issuing public notices, inviting objections, and conducting a thorough verification of consents. The court found no procedural irregularities or violations of natural justice in the decision-making process.
The court also dismissed the petitioner’s reliance on a previous order dated July 7, 2023, which had initially rejected the builder’s application for additional FAR due to unresolved maintenance issues. It clarified that the subsequent grant of additional FAR was based on a fresh application and compliance with statutory requirements.
In conclusion, the court upheld the orders granting additional FAR, stating that the decision reflected the clear majority view of apartment owners and complied with all statutory provisions. The petition was dismissed, and the court directed the builder to ensure strict compliance with all regulatory conditions.
Bottom line:-
Consent for additional Floor Area Ratio (FAR) requires informed consent from apartment owners, obtained through due process. A majority of consents suffices if statutory requirements are met, and allegations of coercion or fraud must be proven in a competent court.
Statutory provision(s): U.P. Apartment Act, 2010, Section 5(3A); Real Estate (Regulation and Development) Act, 2016; Indian Contract Act, 1872, Section 19.
