The Noida authority has cancelled allotment of 17 commercial plots which were done through a competitive bidding system in October, 2013.
The authority said on Friday that it had to cancel the allotment after the applicants failed to deposit 25 percent of the property cost within the stipulated period one month from the date of allotment.
The failure of this commercial plot scheme, which was promoted as the most successful one by the officials then, is being seen as a major setback to the authority. It has about 77 more commercial plots to allot.
The authority had allotted a total of 31 plots, out of 94 available under the scheme in October, 2013 as the rest of the plot found no takers. Of these, 17 allottees have failed to pay the money in time. So, only 14 plots stay allotted so far.
"We have seized the security money of these 17 applicants, who failed to pay the money," Vipin Gaur, general manager (commercial) of Noida authority said, adding that the authority had taken back the possession of the plots.
The authority has earned Rs. 1.65 crore by way of the security money.
These plots are located in Sectors 1, 10, 16, 18, 22, 27, 40, 44, 63, 70, 100 and 110.
The failure of the scheme has left the officials bewildered too because two of the plots are located in Sector 18, city's most popular commercial hub which boasts of the highest property rate.
These plots, measuring 96 sq m, had been bought at a record breaking rate of Rs. 13, 56,000 per sq m.
"I guess many people had bought these plots at a high rate to resale quickly and make easy money. But they failed to get any buyer in the resale market, and couldn't pay back the authority. It means that commercial plots have few takers in Noida now," said a real estate expert.