The Allahabad High Court has issued a landmark directive for the demolition of unauthorized floors and full towers at the Gulmohar Greens residential society in Ghaziabad, citing severe regulatory lapses and systematic collusion between the developer and the Ghaziabad Development Authority (GDA). In a strongly worded judgment, a division bench comprising Justice Saral Srivastava and Justice Sudhanshu Chauhan set aside the GDA’s third compounding order dated December 18, 2024, which had sought to regularize persistent deviations from sanctioned building plans.

The Court’s order mandates the demolition of the ninth and tenth floors of Towers 16, 17, 18, and 19, along with the complete demolition of two additional blocks, Towers 27 and 28. The Bench directed that these demolitions must be completed within two months, with costs recovered from the developer, Friends Land Developers. Beyond the physical demolition, the Court imposed a ₹25 lakh cost on the promoter, payable to the Residents Welfare Association, and ordered the GDA to pay ₹50,000 to each of the eleven petitioner-flat owners who brought the matter before the Court.

Exposure of Systematic Collusion The judgment exposes a pattern of regulatory capture where the GDA allegedly permitted the developer to deviate from sanctioned layout plans multiple times under the guise of compounding. The Court highlighted that the developer had repeatedly flouted the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010, and the U.P. Urban Planning and Development Act, 1973. Crucially, the developer had sold apartments and handed over possession without obtaining the mandatory completion certificate, a process that should have been strictly enforced by the GDA.

Justice Saral Srivastava, writing for the Bench, remarked, “We find that it is a case where poor apartment owners have been harassed by the Promoter in connivance with the Development Authority. Therefore, it is a fit case for imposition of cost.” The Bench noted that the GDA’s persistent failure to act against these violations allowed the developer to perpetuate illegal constructions, thereby compromising the structural safety and safety of thousands of residents.

Fraud and Statutory Violations Evidence presented before the Court revealed that the developer had illegally sold common areas—intended for greenery and public space—to at least 85 buyers. The Court expressed shock at the failure of local law enforcement to conduct a credible investigation into the matter. An earlier FIR registered under sections related to fraud and forgery had been closed by police with a "Final Report" stating that the dispute was of a "civil nature," a move the Court labeled as a dereliction of duty.

“The facts delineated above also establishes that the Development Authority has been in collusion with the respondent-Promoter in committing the aforesaid illegalities with impunity by the Promoter inasmuch as despite the fact that Development Authority did know about the violation committed by the Promoter, allowed him to transfer the apartments,” the judgment observed. The Court has now directed the Commissioner of Police, Ghaziabad, to initiate a fresh, rigorous investigation into the allegations of fraud and misrepresentation against the developer, overseen by an officer of at least the rank of Additional Commissioner of Police.

Accountability for Regulatory Bodies The consequences of the ruling extend to the upper echelons of the Ghaziabad Development Authority and the police force. The State Government has been directed to initiate disciplinary proceedings against the GDA Vice Chairman who authorized the third compounding of the map, and an inquiry has been ordered against the police inspector responsible for the faulty investigation. The Court also ordered the constitution of a three-member committee, headed by the GDA Vice Chairman, to identify the common areas sold illegally to 85 individuals. The developer is further ordered to refund the full sale price of these common areas to the buyers, inclusive of interest and construction costs.

The Court held that the developer cannot rely on the excuse of financial difficulty to justify multiple unauthorized structural changes. The judgment clarified that while compounding is a process intended to rectify minor deviations from a sanctioned plan, it cannot be weaponized as a tool to legalize major, repeated architectural violations that contradict the layout plan and deplete the undivided interest of flat owners in common facilities.

“In the garb of compounding, a resolution of authority or Development Authority itself will not cure the patent defect going to the root of the matter and an illegality will not stand cured and legal with the consent of KDA or any other development authority since statute provides a particular procedure and nothing can be done in a manner other than the procedure prescribed in the statute,” the Bench stressed.

Next Steps for Residents The ongoing legal battle highlights the precarious position of apartment owners when developers bypass the mandatory requirement of a completion certificate. The Court emphasized that in cases of Group Housing, a developer is obligated to complete individual blocks and obtain a completion certificate before allowing occupation. The developer's failure to do so, combined with the GDA's failure to stop the occupation, left the residents in a vulnerable position.

By setting aside the third compounding map and mandating the return of funds for common areas sold illegally, the Court has provided a roadmap for rectifying the project’s status. The District Administration and police have been directed to ensure the security of the GDA officials during the upcoming demolition process. The residents, who had endured over two decades of uncertainty regarding the status of their project, now face the immediate practical consequence of having the unauthorized towers removed, with the Court’s order serving as a stern warning against the continued use of compounding processes to bypass planning law.