LDA to release 2,747 mortgaged plots in Sushant Golf City

Cabinet clears proposal to protect homebuyers who purchased plots sold by Ansal without LDA’s permission

The Lucknow Development Authority (LDA) will release 2,747 plots in Sushant Golf City that Ansal Property Infrastructure Limited (APIL) had mortgaged with the authority but later sold without its permission, in a move aimed at protecting the interest of homebuyers who purchased the plots, stated in a LDA official press release on Sunday.

The state cabinet approved the LDA’s proposal on September 15, clearing the way for the authority to release the mortgaged plots instead of cancelling the registries of the buyers.

LDA vice-chairman Prathamesh Kumar said APIL had mortgaged 3,489 plots with the authority as a guarantee for completing development works in the township. Under the township conditions, the developer could not sell these plots without the LDA’s permission.

“Ansal sold 2,747 of these mortgaged plots despite the restriction,” Kumar said.

The LDA decided against cancelling the registries as doing so would have left genuine homebuyers in uncertainty. The authority will now place its proposal for completing the township before the National Company Law Tribunal (NCLT).

Plots to be released in phases

The LDA will complete development works in the semi-developed and undeveloped parts of Sushant Golf City. It will issue completion certificates sector- or pocket-wise and release the mortgaged plots proportionately after completing the required works.

The authority will also allow landowners to seek release of their mortgaged plots before completion if they meet prescribed conditions. Applicants will have to deposit a guarantee amount equivalent to the fee fixed by the LDA board.

The authority will refund the guarantee after completing the development work and issuing the completion certificate.

“Development works will be completed in phases while protecting the interests of landowners and genuine homebuyers,” Kumar said.