Garden Gateway Case: Bank Withdraws ‘Illegal’ Eviction Notice
A total of 200 families living in Garden Gateway, a housing society located at Noida’s Sector 75, heaved a sigh of relief after public lender Union Bank of India (UBI) withdrew eviction notices on August 14, 2019, which it had issued earlier over loan default by the developer.
Issuing the notice on August 5, UBI directed the residents to vacate their houses by August 20 as the builder, Gardenia India Limited, defaulted on a loan amount of over Rs 78 crore — a move that earned the lender much public criticism. According to the bank, the housing project was mortgaged as security by the builder for the loan. The residents’ welfare association says that buyers had not been informed about this loan arrangement and were being "unnecessarily harassed".
Legal experts agree.
"The flat owners were neither borrowers nor guarantors in this case. So, it's illegal to send such a notice to them. Moreover, there is due legal process to be followed before issuing eviction notices which hasn't been followed," says advocate Nitin Gupta. The flat owners were not signatories to the deal and hence any action against them is not justified, he adds.
Annu Khan, president of the Noida Extension Flat Owners and Members Association (NEFOMA), said the banks action was not in compliance with the Supreme Court's order in the Amrapali Case.
"The apex court had clearly stated that any such issue is to be sorted out between the bank and the builder and the flat buyers should not be bothered. Here, sending eviction notice to flat buyers over default in payment of loan by the builder was completely wrong," Khan said.
It is worth mentioning here that the project has not received an occupancy certificate (OC) from the Noida Authority, due to which flats are also not registered.
With inputs from Housing News