Noida authority to revise plot allotment guidelines

The development followed UP government issuing a letter on Tuesday about revising the guidelines for allotment of commercial plots in Noida

NOIDA: The Noida authority on Tuesday said that it is likely to revise its plot allotment guidelines to bring more transparency and accountability in the procedure.

The direction came in view of an issue that occurred early 2024 about allotment of two commercial plots to subsidiaries of the M3M Group by the Noida authority. (Sunil Ghosh/HT Photo)

“We will revise the guidelines and take appropriate action as per the Uttar Pradesh government’s direction,” said a Noida authority official aware of the development.

The development followed the Uttar Pradesh government issuing a letter on Tuesday about revising the guidelines for allotment of commercial plots in Noida, addressing technical issues raised by the Comptroller and Auditor General (CAG) in its 2021 performance audit.

The updated rules’ motive is to end technical irregularities, ensure transparency, and ensure fairness in the allotment process, which has in the past witnessed disputes and compliance concerns.

The direction came in view of an issue that occurred early 2024 about allotment of two commercial plots to subsidiaries of the M3M Group by the Noida authority.

A complainant alleged that rules were violated in the allotment procedure as there were discrepancies in the terms outlined in the authority’s e-brochure for the scheme.

The disputed plots include one in Sector 94, allotted to Lavish Buildmart Pvt Ltd, and another in Sector 72, allotted to Skyline Propcon Pvt. Ltd., under an e-tender scheme.

A complaint filed on February 28, 2024, prompted a review of the allocations.

The authority’s probe that followed the direction of the state government cancelled the allotments in May 2024, citing non-compliance with eligibility norms.

The M3M subsequently appealed for the cancellation order to be overturned and requested a hearing. After reviewing the reports and the appeal, the government stayed the cancellation order in June, allowing for further examination of the matter.

To address such issues, Anil Kumar Sagar, principal secretary, on Tuesday introduced revised guidelines aimed at closing gaps in the allotment process.

The new rules require individual bidders to meet all technical qualifications independently, including net worth, solvency, and turnover.

In consortiums involving holding and subsidiary companies, the holding company’s technical qualifications may be considered if it owns 100% equity in the subsidiary and retains it throughout the project. For consortiums of unrelated firms, only the qualifications of entities holding at least 26% equity will be evaluated.

The revisions were prompted by the CAG’s observation that previous eligibility conditions allowed holding companies to use their qualifications even when their subsidiaries failed to meet the minimum criteria.

This ambiguity in the tender evaluation process had led to misinterpretations, undermining transparency and fairness.

The Noida authority has been instructed to apply the revised guidelines to all future land allotments, as these changes are expected to bring clarity to the allocation process, reduce the potential for disputes, and restore stakeholder trust, strengthening Noida’s reputation as a key hub for industrial and commercial development.

Yash Garg, director of M3M Noida hailed the government’s decision to revoke the plot cancellation order for projects M3M The Cullinan in Sector 94, and M3M The Line in Sector 72 in Noida.

“This landmark decision brings immense relief to our homebuyers. The decision not only strengthens trust in the M3M brand that is committed to probity and integrity but reaffirms our dedication to delivering excellence through innovation. We look forward to shaping a vibrant and prosperous future, ensuring a seamless home-buying experience for all,” Garg said.