Noida authority allows construction to resume at M3M site
A team from the authority’s civil department, along with the police, had sealed the M3M Group’s construction site in Sector 72 and sealed the main gate of the property, citing violations in laid down rules of e-tendering
The Noida authority on Tuesday allowed realty firm M3M to resume work at its construction site in Sector 72 following fresh orders from the Uttar Pradesh government, revoking its earlier allotment cancellation order, officials in the know of the matter said.
“We had sealed only one construction site, in Sector 72, and not the one the company has in Sector 94. After the state government withdrew its earlier order cancelling the allotment, M3M can now continue with its construction work at both sites,” said Lokesh M, chief executive officer, Noida authority.
On being asked whether the sector 72 site will be de-sealed and the allotment restored, Lokesh M said, “There is no need to de-seal the Sector 72 site and they can resume the work. There is no need to restore the allotment because the state has withdrawn its earlier order, thereby resolving the issue.”
“We welcome the decision of the state government. We are committed to our investment in Uttar Pradesh and will ensure jobs and opportunities, along with creating a masterpiece for the state. This revocation marks a positive step towards restoring confidence among investors and developers, reaffirming the government’s commitment to fostering a conducive environment for growth and development,” said spokesperson of M3M Group.
A team from the authority’s civil department, along with the police, had sealed the M3M Group’s construction site in Sector 72 and sealed the main gate of the property, citing violations in laid down rules of e-tendering.
On February 28, 2024, activist Roop Singh filed a complaint alleging that the terms of brochures were violated during the allotment of plots, and that the e-bidding process did not follow the laid down rules and regulations.
Following the complaint, the state government directed the Noida authority additional chief executive officer to probe the issue and compile a report on the issue.
On the basis of the complaint and ACEO’s report, on May 10, 2024, the state government cancelled the allotment of two land parcels of M3M on the grounds that there was no healthy competition in these allotments.
As a result, the government witnessed a revenue loss and the allotment terms and conditions also ignored the suggestions, which were made by the Comptroller and Auditor General of India to remove ambiguities in the allotment rules of Noida, Greater Noida and Yeida, said officials.
The Uttar Pradesh Infrastructure and Industrial Development Department’s principal secretary Anil Kumar Sagar said the Noida authority kept the reserve price of the plot in Sector 94 at ₹827.35 crore and that of the plot in Sector 72 at ₹176.48 crore.
“These plots were allotted at rates that were ₹5 lakh more than the reserve price to the two subsidiaries of M3M Group, Lavish Buildmart Private Limited in Sector 94, and Skyline Propcon Private Limited in Sector 72. It means that there was no competition against the norms. The aim of the e-tender bidding is to allot a plot on a competitive bid but that did not happen in these two allotments. And the rule of net worth, insolvency and turnover was not followed. Even the Comptroller and Auditor General of India in August 2020 warned Noida authority to end ambiguity in tender conditions. But in this scheme launched in 2022, the Noida authority did not end the ambiguous terms of allotment,” said the cancellation letter sent by the Noida authority.
Noida authority is also in the process of making changes to the e-auction policy.