New Delhi, Sept. 4 -- The Supreme Court on Thursday set aside the penalty for delayed construction levied by the Noida authority on homebuyers of the Lotus Boulevard and Lotus Grande projects, which are currently under insolvency proceedings, observing that homebuyers cannot be penalised for the "sins" of the past developer.

The court was hearing a petition filed by homebuyers of the two projects in Noida's Sectors 100 and 110. They had challenged a July 2025 order of the National Company Law Appellate Tribunal (NCLAT) directing them to pay "time extension" charges to the Noida authority.

A bench of justices JB Pardiwala and K Vinod Chandran said, "The project was to be completed in the year 2016, and despite another decade having passe...