The Uttar Pradesh Cabinet on Tuesday formally approved the takeover of the long-delayed Ansal API high-tech township in Lucknow by the Lucknow Development Authority (LDA), paving the way for the stalled project to be revived and providing a possible resolution to the grievances of nearly 5,000 homebuyers.
The Cabinet approved the takeover of the township developed by M/s Ansal Properties and Infrastructure Ltd (APIL) under the High-Tech Township Policy through a licence granted by the LDA. LDA vice-chairman Prathamesh Kumar said the authority would now prioritise completing the unfinished township and place the cabinet decision before the National Company Law Tribunal (NCLT).
The preliminary maximum liability has been estimated at around ₹2,912 crore. The state government will provide the funds required to meet liabilities finalised through the process as seed capital to the LDA.
The decision will also protect mortgaged and village community land by bringing it under the LDA rather than allowing such land to pass to a third party.
“The priority now will be to set the priorities and complete the incomplete township. We will also place the Cabinet decision before the NCLT,” Kumar said.
The takeover is expected to enable the LDA to resume infrastructure and utility development in the township. However, the authority will have to work within the ongoing insolvency proceedings to determine how individual claims and liabilities are settled.
{{/usCountry}}The takeover is expected to enable the LDA to resume infrastructure and utility development in the township. However, the authority will have to work within the ongoing insolvency proceedings to determine how individual claims and liabilities are settled.
{{/usCountry}}According to LDA officials, around ₹2,216.91 crore will be required to complete unfinished development works in the township. These include roads, drinking-water supply, sewerage, drainage, parks and substations.
Nearly 50 km of roads remain incomplete. The project also lacks the 440 KVA and 220 KVA substations that APIL was required to construct. Work on tube wells, water pipelines, sewer lines, parks and drainage systems is also pending.
Of the estimated expenditure, ₹453.10 crore will be spent on infrastructure development in Pockets 1 to 4, while ₹1,126.52 crore has been estimated for development works in Pocket 5. Another ₹114.28 crore will be required for the remaining work on a railway overbridge, while ₹523 crore has been estimated for construction of substations.
The takeover is expected to provide relief to around 5,000 homebuyers who have been waiting for possession, infrastructure and other promised facilities.
Asked how the decision would benefit buyers who had already approached the NCLT, Kumar said their claims would be dealt with through the ongoing insolvency resolution process (IRP).
“Those victims who have already approached the NCLT and filed their claims after the directions of the NCLT will be dealt with after the court proceedings. We will resolve the issue of the victims as per the directions of the NCLT,” he said.
Officials said the estimated ₹2,216.91 crore required to complete the unfinished development works was tentative and the final liability would be determined through the interim resolution professional (IRP).
Homebuyer Anurag Gupta welcomed the decision and thanked the state government for intervening in the long-pending matter. “I thank the chief minister for these efforts. The homebuyers will benefit from this decision,” he said.
LDA claims ₹4,500 crore from developer
The takeover follows allegations of financial and land-related irregularities against APIL. The LDA lodged an FIR against the developer in March 2025 after an investigation into alleged irregularities. Several homebuyers subsequently approached the police, alleging fraud, forged registries and non-delivery of possession.
The LDA has filed a claim of around ₹4,500 crore before the NCLT, seeking recovery of acquisition charges, map approval fees and other statutory dues.
According to the authority, APIL also illegally sold around 411 acres of land mortgaged to the LDA as a performance guarantee under the High-Tech Township Policy. LDA officials said the developer had mortgaged around 3,000 plots as collateral, which could have been sold by the authority to fund development if APIL failed to develop the township. The authority alleges that the developer sold these plots despite the mortgage.
The investigation also found alleged sale of around 164 hectares of land belonging to the village community and municipal corporation, besides land belonging to a consortium, officials said.
Committee report preceded takeover
The takeover follows a state government-appointed committee’s examination of allegations against APIL. The committee conducted field inspections, scrutinised land and development records and consulted the district administration, LDA, Lucknow Municipal Corporation and other departments before submitting its final report.
MLA welcomes decision
BJP MLA from Sarojini Nagar Rajeshwar Singh on Tuesday welcomed the Cabinet’s approval, saying the takeover could provide relief to around 5,000 homebuyers and help complete pending roads, water supply, sewerage, drainage, parks, a railway overbridge and power substations. Singh had met chief minister Yogi Adityanath on August 21 and raised the homebuyers’ concerns.