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Ansal township takeover: LDA mulls completion charge for MIG, HIG homebuyers
The proposed charge is being considered because a large portion of the land mortgaged with the LDA as security has already been sold by the private developer, leaving the authority with limited scope to generate funds by using the mortgaged plots, LDA vice-chairman Prathamesh Kumar said on Friday.
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Property buyers in the stalled Ansal API township in Sushant Golf City could face a new completion charge as the Lucknow Development Authority (LDA) moves ahead with the takeover following the UP Cabinet’s approval on September 15.
The proposed charge is being considered because a large portion of the land mortgaged with the LDA as security has already been sold by the private developer, leaving the authority with limited scope to generate funds by using the mortgaged plots, LDA vice-chairman Prathamesh Kumar said on Friday.
Kumar said the proposed charge would likely be imposed when owners of middle-income group (MIG) and higher-income group (HIG) properties approach the LDA for approval of building maps. Buyers in the lower-income group (LIG) and economically weaker section (EWS) categories would remain exempt.
The Cabinet’s approval has cleared the way for the LDA to take over the township, shifting the focus to documentation, determination of liabilities and proceedings before the National Company Law Tribunal (NCLT), where the insolvency resolution process is underway.
For thousands of homebuyers who have either purchased plots or are awaiting possession, the key concern remains whether the LDA will provide them the properties they originally paid for or compensate them financially.
Kumar told HT that the LDA would act on claims filed before the NCLT and approved by the tribunal. Buyers whose claims are approved would be considered for allotment of the corresponding property, he said.
According to LDA officials, Ansal Properties and Infrastructure Ltd (APIL) had mortgaged around 3,000 plots with the authority as a performance guarantee under the High-Tech Township Policy. The mortgage was intended to provide the authority with a financial avenue to complete development if the private developer failed to execute the project.
However, officials allege that APIL subsequently sold around 411 acres of land mortgaged with the LDA. Kumar said around 70% of the mortgaged land had already been sold, reducing the authority’s available financial resources.
The LDA has also alleged the sale of around 164 hectares of land belonging to village communities and the municipal corporation, besides land associated with a consortium.
The preliminary maximum liability arising from the takeover has been estimated at around ₹2,912 crore. The state government is expected to provide the funds required to meet liabilities finalised through the resolution process as seed capital to the LDA.
The tentative cost of completing the unfinished development works had earlier been estimated at ₹2,216.91 crore. The final liability will be determined through the interim resolution professional (IRP) as part of the insolvency process.
Nearly 50 km of roads remain incomplete, while the township is yet to get the 440 KVA and 220 KVA substations required under the project plan. Tube wells, water pipelines, sewer lines, parks and drainage systems also remain unfinished.
The tentative estimate includes ₹453.10 crore for infrastructure works in pockets 1 to 4 and ₹1,126.52 crore for pocket 5. The remaining railway overbridge work was estimated at ₹114.28 crore, while ₹523 crore was earmarked for substations.
The LDA meeting, initially planned for Friday, has been shifted to Saturday. The meeting will involve its land acquisition, town planning and legal teams to discuss the documentation, NCLT proceedings, liabilities and the strategy for completing the township.
