The Apex Court has issued a temporary halt to a directive from the Allahabad High Court that called for an Enforcement Directorate investigation into financial transactions associated with the Lotus 300 luxury housing project in Noida.

On Tuesday, a vacation bench comprising Justices Sanjay Kumar and Augustine George Masih issued the order. Previously, on February 29, the Allahabad High Court had directed the Enforcement Directorate to investigate alleged financial irregularities associated with the Lotus 300 housing project in Sector 107 of Noida.

Hacienda Project Private Limited (HPPL), a consortium led by Pebbles Infrotech, was allotted the land to develop Lotus 300, with 3C as its parent company. The Allahabad High Court had criticized the Noida Authority for its "gross negligence," noting that it had failed to take any actions or verify the status of payments owed to it over a period of more than a decade, resulting in a significant increase in outstanding dues.

"Pending further orders, there shall be interim stay of the direction of the High Court contained in paragraph 114. However, all parties concerned shall endeavour to ensure that the direction of the High Court in paragraph 117 is duly implemented within time," the SC bench stated in its order.

Paragraph 114 of the High Court order specifically addressed the Enforcement Directorate's investigation into all directors, promoters, designated promoters, officers in default, companies, and other entities allegedly involved in siphoning or parking money from Hacienda Project Private Limited (HPPL).

The HC had ordered, "These entities or people are directed to cooperate in the investigation & if they do not cooperate in the investigation then ED would be free to take any appropriate action against them as available under the law".