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Meet 3C Company which has left hundreds of homebuyers in the lurch like Jaypee and Amrapali

The company introduced residential projects with 10,000 flats, still has around 6,500 flats to deliver.

Updated: Jul 20, 2019, 03.53 PM IST
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Over the last five years, owners of flats in Lotus Boulevard, Espacia, Zing, Lotus 300 and Panache have knocked on every possible door to get work on their houses re-started. Without much headway, they have taken legal recourse.
Hanisha Jagtiani would travel all the way from Mumbai every time there was a hearing at UP-Rera on her much delayed flat in Noida. And every time, the developer’s representatives would not turn up. This “fruitless” exercise continued for months until Hanisha shifted to Germany.

Floated by promoter trio Nirmal Singh, Supreet Singh and Vidhur Bhardwaj, 3C is the company behind projects with the Lotus brand name and yet another player from NCR, after Jaypee and Amrapali, that finds itself embroiled in insolvency proceedings. Granite Gate, the 3C subsidiary building the Lotus projects, was dragged to the National Company Law Tribunal (NCLT) earlier this year.

The company, which introduced a slew of residential projects with 10,000 flats in Noida between 2010 and 2012, still has around 6,500 flats to deliver to buyers. The promoters say they hope to swim out of hot water and deliver the flats with the projects’ own money. But that’s not an assurance that’ll convince homebuyers waiting for years.

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The buyers hope insolvency proceedings will help out the house in order, to the extent that the IRP or 3C itself can complete the flats.

Over the last five years, owners of flats in Lotus Boulevard, Espacia, Zing, Lotus 300 and Panache have knocked on every possible door to get work on their houses re-started. Without much headway, they have taken legal recourse.

“For some time since 2014, buyers had been flagging their complaints only with Noida Authority. However, with the discussions failing to lead to any solution, buyers of Lotus Panache and Boulevard ended up lodging complaints with the national consumer court (NCDRC),” says Vijay Tahlani, a buyer at Panache.

“Some also went to UP-Rera after it was formed but that too yielded little. So, in 2019, the homebuyers went to the National Company Law Tribunal (NCLT), and appealed for liquidation and a refund in the capacity of financial creditors.”

3C Company has also been accused of diverting funds from its Panache project in Sector 100. Of the 3,900 flats there, the company has only delivered 1,200. In December 2018, the directors were arrested for allegedly diverting Rs 191 crore of the Rs 636 crore collected from buyers of Lotus 300.

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“We had also filed a case against the builder at UP-Rera. We stayed in Mumbai then, and for every hearing, we would have to fly down to Noida. But the builder would never turn up. We would visit their offices, but to no avail. This became a fruitless exercise. We booked the flat when we were expecting our baby. The child is now six and we still have no house of our own,” says Hanisha.

3C launched 534 flats in Espacia, 2,464 in Zing, 300 units in Lotus 300, 3,120 in Boulevard and 3,390 in Panache — a total of 10,308 houses. It was in January this year that buyers in Panache filed an insolvency plea at NCLT.

The insolvency resolution professional appointed by the NCLT, PS Soni, told TOI he had received two expressions of interest by builders Jaipuria and Purvanchal for completion of 20 towers of Lotus Panache. But by then, Noida Authority had claimed its land dues to the tune of Rs 900 crore. However, the Authority’s claim has now been negotiated for a payoff of Rs 239 crore.

Asked how he planned to deliver the flats, promoter Nirmal Singh painted a positive picture. “We have issues with Zing and Panache, but we are working things out. The houses will be completed and handed over to buyers,” Singh said.

For Lotus 300, where the builder has been accused of diverting funds, Singh sees no problems. “The total cost to complete Lotus 300 is Rs 25 crore. The amount due to us from buyers is Rs 150 crore. So, we are not worried,” he told TOI.

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The buyers hope insolvency proceedings will help out the house in order, to the extent that the IRP or 3C itself can complete the flats. “Nobody ultimately wants liquidation of a company, because the buyers would then be left with nothing,” says Sanjeev Jain, who has booked a flat in Panache.

But the buyers are a tired lot too. All through 2018, they had been staging protests to get the attention of the government. “We have struggled long for our flats and have been suffering financially. I am a single mother and I booked two flats at Lotus Panache in 2013 — one for me and another for my mother. Till date, I am paying EMIs and a hefty rent for the house I stay in now,” says Kanupriya.

“All the families who invested in this project are suffering. We know funds have been diverted from Panache, and would like to question the Noida Authority why it is not disclosing the Curry and Brown report that mentioned what the company did with buyers’ money.”

For Hanisha, any news of construction is welcome. “The latest update on our flat at Boulevard is that construction is in progress, though at a very slow pace. It still seems like a long wait.”

Nirmal Singh, who is the main force behind the successful Lotus Greens, says all is well with his other company. “With 3C, I made the mistake of being a promoter. With Lotus Greens, I am only an investor. We have big ticket tie-ups at Lotus Greens and we are executing projects nationwide,” Singh says.

Apart from Noida, 3C Company has two projects in Gurgaon’s Sector 89 that are yet to take off. Singh says he is a victim too. “It’s the economy. Builders are under huge pressure. GST norms, lack of liquidity in the market… how do we manage? But we will deliver the flats,” he says.

Also Read

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3C Company, RMGL join hands to raise awareness about green living

3C Company forays into hotel biz; ties up with Four Seasons

3C Company and Orris Infrastructure in JV to develop Rs 2,300 crore housing project

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