State committee to hear builder’s plea on cancellation of allotment in Noida | noida | Hindustan Times
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State committee to hear builder’s plea on cancellation of allotment in Noida

The Noida authority’s chief executive officer (CEO) Amit Mohan Prasad in July had cancelled the allotment as the builder delayed the payment of the land due instalments. Instead of February, the builder had wanted to deposit the land dues in March, but the CEO did not give the realtor additional time and cancelled the allotment

noida Updated: Aug 10, 2017 22:24 IST
Vinod Rajput
The authority had allotted land worth Rs1,000 crore at a reserve price of Rs77,552 per sqm.
The authority had allotted land worth Rs1,000 crore at a reserve price of Rs77,552 per sqm.(Burhaan Kinu/HT FIle Photo)

The Uttar Pradesh industrial development department on August 18 is likely to hear realty firm Shipra Estate’s plea demanding revocation of the Noida authority’s decision to cancel the allotment of 1,26,000 square metres group housing land in Sector 43.

The Noida authority’s chief executive officer (CEO) Amit Mohan Prasad in July had cancelled the allotment as the builder delayed the payment of the land due instalments. Instead of February, the builder had wanted to deposit the land dues in March, but the CEO did not give the realtor additional time and cancelled the allotment. The builder was also charged Rs50 crore of the Rs200 crore deposited for the land.

The authority had allotted land worth Rs1,000 crore at a reserve price of Rs77,552 per sqm. The builder had appealed to then UP industry minister Satish Mahana for the restoration of the cancelled plot and was advised to file an appeal for the same.

“The Shipra Estate has filed an appeal against the CEO’s decision. A committee will hear it and take a decision on this issue. As per law, he has a right to file an appeal. Now it is up to the committee to take a call on it,” Alok Sinha, principal secretary, UP industrial development department, said.

The industrial development department will also be a part of the committee that will hear the appeal.

Three builders — Shipra Estate, Saya Homes and Vibhor builder — in August 2016 had expressed interest in buying 1,26,000 square metres of prime housing land in Sector 43. The land is located off Dadri road and was the biggest allotment in Akhilesh Yadav’s tenure.

“We had wanted additional time to deposit the land dues but the CEO refused our request. We had also requested the authority to impose a penalty for delay instead of cancelling the allotment. However, the allotment was cancelled. We hope to get relief through the plea,” Mohit Singh, managing director, Shipra Estate, said.

The Shipra Estate company was supposed to deposit Rs800 crore in instalments. Officials said that the builder had paid Rs50 crore at the time of allotment and was supposed to pay Rs150 crore by February but did so only in April.

“The industrial department is yet to take a decision on the plea against the cancellation. I am awaiting the state government’s decision,” said Amit Mohan Prasad, CEO of the Noida authority.