Noida cancels allotment of group housing plot in Sports City scheme over dues

The authority will take possession of the plot, and re-auction it to collect revenue out of this process, said officials on Monday

NOIDA: The Noida authority on Monday said that it has cancelled the allotment of around 110,000 square metre group housing plot to developer Lotus Greens in the Sports City scheme in Sector 150 following the developer’s failure to clear around ₹4,200 crore dues as per the terms.

A spokesperson of the developer, however, said that the Noida authority cannot take this kind of action because there is a “non-coercive” order from the Supreme Court in this case. (HT Archive)

This is the first time that the Noida authority has cancelled the allotment of a group housing plot in the city’s ambitious “sports city” housing scheme that came in 2014.

The authority will take possession of the plot, and re-auction it to collect revenue out of this process, said officials on Monday.

However, a spokesperson of the developer said that the authority cannot take this kind of action because there is a “non-coercive” order from the Supreme Court in this case.

The authority said that it has cancelled the allotment on the ground that the developer has not paid the dues since 2016, when it last gave additional time to clear the payment.

“We have cancelled the allotment because the developer failed to clear the land cost dues despite the repeated reminders. Now we have decided to take back possession of this land. Subsequently the authority will use this land for the purpose it is meant for,” said Noida authority’s chief executive officer Lokesh M.

To be sure, in this scheme, the authority had allotted the land for the group housing projects on 30% land out of the total land allotted, and on remaining 70 world-class sports facilities were supposed to be developed by the developers.

Notably, the authority had allotted four sports city plots in sectors 79, 150, and 151. These ultra luxury projects are facing long litigation due to the dispute between the Noida authority and the realtors, thereby, leading to the distress of around 30,000 homebuyers, whose dream to get possession of their house is stuck since 2014.

Noida authority officials said that the authority had come up with a sports city plot scheme in 2014 under which it was supposed to allot 1.2 million sqm of land to a developer.

“As per the terms of the brochure of that scheme the developer was supposed to take the extra housing land that may be available adjoining 12 lakh square metres of plot. After allotment the authority found there was 131,800 square metre extra land available in this sports city scheme in Sector 150. The developer had agreed to take this extra land and was supposed to make the payment. But in the last 9 years, the developer has not paid the land cost prompting us to cancel the allotment now,” said another Noida authority official aware of the development.

However, the developer did pay the money for more than 20,000 square metres (sqm) of land that has not been cancelled, said officials on Monday.

The Lotus Green is developing a Golf Course and other sports facilities in the sports city project, and cancelling the allotment of 110,000 square metre will mean the development of these facilities will be affected, said Noida authority officials.

“A case related with the sports city is pending in the Supreme Court that has ordered no coercive action can be taken against the developer as the case is sub-judice. We fail to understand how the authority can take such an action when the Supreme Court is hearing the matter,” said a spokesperson of the developer.