NCDRC Directs District Magistrate to Take Over Control of Much Delayed Greater Noida Project

New Delhi, February 1, 2026: In what can only be described as a major blow on behalf of homebuyers, the National Consumer Disputes Redressal Commission (NCDRC) has ordered the district magistrate of Gautam Budh Nagar to take over the administration of Sushant Megapolis project, part of Ansal Hi-Tech Township Ltd, in Greater Noida. This recent decision thus lays down a gamechanging precedent: Delay in giving possession of flats and denial of refund can result in the management of the realty firm being replaced by a government authority.

To be sure, appointing a receiver is a par for the course in insolvency matters but this ruling marks the first time that a consumer court has taken such a strong decision to protect homebuyers.

The NCDRC bench of Justice Sudip Ahluwalia and Sadhna Shanker passed the order as the builder did not implement an earlier one passed five years ago, directing refund of money to buyers who booked residential plots in 2008. The builder also neglected to reply on the plea of homebuyers who wanted a receiver appointed in the case.

“We are therefore of the opinion that the ends of justice would be subserved, if the prayer for appointment of the receiver to take over the as-sets of the judgment debtor company especially the project in question, namely, ‘Sushant Megapolis’ is allowed. The district magistrate of Gautam Budh Nagar accordingly would take over the administration of the aforesaid project, and ensure that no payments from any intending purchasers or third parties are directly received by the judgment debtors,” the order said.

The court said that such payments must have to be invariably realised by the receiver/district magistrate, who will also ensure that no liquid assets/shares of the judgment debtor are transferred in favour of any third party till further orders from the commission. ”The registry is directed to inform the district magistrate accordingly,” it said.

The court order came on a plea of a group of buyers who said that the NCDRC order of 2020 remained unimplemented and asked for the administration of the project be taken away from the management. In the 2020 order, the court had said that buyers waiting for years for possession of residential plots cannot be made to wait indefinitely.

“Though no specific time period for completing the development and offering possession to the allottees was indicated in the agreement, that would not entitle the builder to prolong the development work to an indefinite period. In such a case, the development work must necessarily be completed within a reasonable time period. As far as the development of plots is concerned, such a work does not require as much time as required for construction of group housing flats in multistoried buildings. At best, the development work of the plots, even on a large scale, must be completed within a period of three years from the approval of the layout plans,” it had said.