CBI files FIRs against Noida developers over Sports City irregularities

CBI filed FIRs against Noida Sports City developers over land allotment irregularities, alleging ₹9,000 crore loss to the state, prompting a high court investigation.

The Central Bureau of Investigation (CBI) on Friday filed three FIRs against the developers of Noida’s Sports City projects over alleged irregularities in the land allotment process, resulting in a suspected loss of almost ₹9,000 crore to the state exchequer, senior agency officials have said.

(Representational image)

The FIRs came after the Allahabad high court, in its ruling on February 24, ordered a comprehensive investigation by the CBI and the Enforcement Directorate (ED) into the role of developers, consortium members, and Noida authority officials in a conspiracy to misappropriate homebuyers’ funds and defraud the state exchequer.

A division bench comprising justices Mahesh Chandra Tripathi and Prashant Kumar delivered 10 separate judgments covering three of four Sports City projects in Noida. The court held lead developers and consortium members accountable for violations related to land use, financial mismanagement, and failure to develop the promised sports infrastructure.

As per the FIRs, the alleged irregularities in allotment took place between 2011 and 2017.

The Noida authority officials and the developers were unavailable for comment on the issue despite repeated attempts to reach them

The first FIR names developers Logix Infrastructure and its promoters Shakti Nath, Meenu Nath, and Vikram Nath, besides unidentified Noida authority officials and private individuals allegedly involved in the allotment. The second FIR has been filed against the realty firm Lotus Green and its promoters Nirmal Singh, Vidur Bharadwaj, Surpreet Singh Suri, and others unknown.

The third FIR has been filed against realty firm Xanadu Estates and its promoters Nirmal Singh, Vidur Bharadwaj, Surpreet Singh Suri, and others unknown.

The FIRs have been registered under Indian Penal Code (IPC) sections 120B (criminal conspiracy), 409 (criminal breach of trust), 420 (cheating), and Section 13(2) (criminal breach of trust) of the Prevention of Corruption Act against all developers and officials.

“We have filed FIRs against the Noida developers in the Sports City case. The CBI teams also conducted searches at the Noida authority office and the residences of these promoters in connection with the investigation,” said the CBI spokesperson.

The Supreme Court earlier this month granted interim relief to Lotus Green and Logix Infrastructure, staying coercive actions against them while allowing investigations by agencies to proceed.

The high court had previously criticised the ongoing insolvency proceedings against lead developers, describing the whole process as a “deliberate attempt to evade financial and legal responsibilities”.

The court noted that after project allotments, conditions were repeatedly violated by allottees and sub-leasees, allegedly in collusion with Noida authority officials. It stated, “The entire process of developing the Sports City appears to be tainted by fraud and corruption.”

According to an audit by the Comptroller and Auditor General (CAG), the land allotted for the Sports City projects was significantly underpriced. Developers also engaged in unauthorised ownership transfers without the authority’s approval, while crucial financial dues—including lease premiums, penalties, and transfer charges—remained unrecovered. Furthermore, occupancy certificates were issued to developers despite sports facilities remaining uncompleted.

The court sharply criticised the Noida authority and the state government for inaction, noting that no FIR had been filed despite the CAG’s findings, and demand notices were unresolved. It described the situation as a “dirty nexus” between builders and Noida Authority officials, where benefits were granted contrary to the scheme’s guidelines.

The court said, “This can be a case study of the dirty nexus between builders and Noida authority officials, where benefits after benefits were granted to builders, completely contrary to the scheme, memorandum of agreement (MoA), and the implementation of the Sports City scheme.”

The court ordered the Noida authority to issue fresh notices to all stakeholders, demanding developers clear all dues or face cancellation of allotments. It also ruled that developers failing to complete the projects as promised would forfeit security deposits to reimburse affected homebuyers. Any shortfall would be covered by the Noida authority, which stands to generate significant revenue by relaunching the projects at current market rates.

Originally proposed in 2004, the Noida Sports City projects were launched between 2010 and 2016 on 798 acres, with plans for golf courses and an international cricket stadium. However, developers prioritised residential and commercial development, leaving sports infrastructure unfinished on 70% of the allotted area.