Noida Sports City: HC slams civic body, developers; delays likely

An audit by the CAG audit exposed major financial irregularities in the Sports City allotments, leading to a ₹9,000 crore loss to Noida authority and the state government

A day after the Allahabad high court delivered orders on at least 18 ongoing petitions related to the Noida’s Sports City project, homebuyers on Tuesday said they hope that their wait for apartments will not be further delayed owing to protracted litigation.

The lead developers of the projects in Sectors 78-79 and Logix Sports City project are currently undergoing insolvency proceedings, which the court criticised as a deliberate strategy to evade financial and legal obligations. (HT Photo)

But with developers already stating that they will challenger the high court orders, the wait of homebuyers seems to be nowhere near an end.

The orders pertain to Sports City projects in Sectors 78, 79, and 101, where Xanadu Estate was the lead developer, and two Sports City projects in Sector 150, developed by Logix Infra Developers and Lotus Greens Constructions.

”We had hoped that the Allahabad high court order would resolve all legal issues and that work will restart on our stuck housing project, Lotus Arena, in Noida’s Sector 79 because a new developer was selected to take over the project. But now after Monday’s order, we decided to seek legal advice from our lawyers as to what should be the next step. We pin our hopes on the judiciary. We are exploring options of filing a review petition before the Allahabad high court in our case so that the work can restart on the project. We have been waiting for the flats for the last nine years,” said Vishwanath Sharma, president, Lotus Arena buyers association.

The lead developers of the projects in Sectors 78-79 and Logix Sports City project are currently undergoing insolvency proceedings, which the court criticised as a deliberate strategy to evade financial and legal obligations.

The petitioners, including lead developers and consortium members, sought relief from the Noida authority’s actions, demanding the handover of encumbrance-free land, waiver on lease rent and penalties, cancellation of demand notices, and proper execution of the Sports City development plan.

However, the high court dismissed these requests, stating that developers failed to develop sports infrastructure as per the original plan, and insolvency cannot be used as a shield to escape liabilities. The Noida authority has full rights to recover dues and take legal action, and the state government must launch further investigations into financial mismanagement and fraud, the court ordered.

In one of the orders related to Gaursons Group’s petition, the high court directed the Noida authority to issue permission for registry for its Sector 79 project once the realtors pay the cost of the development of the sports facilities in these projects. In this same project, homebuyers have also filed a writ seeking permission for the registry without delay as they have already suffered a 10-year delay.

”We have decided to get our petition heard at the earliest so that if in two weeks the Noida authority fails to give permission for registry, then we can seek help from the high court. Now after Monday’s order, regarding our housing society, we hope that the Noida authority will facilitate the registry,” said Sanwarjeet Dasoundi, one of the petitioners.

An audit by the Comptroller and Auditor General (CAG) audit exposed major financial irregularities in the Sports City allotments, leading to a ₹9,000 crore loss to Noida authority and the state government. The audit found that land was underpriced, unauthorised transfers of ownership were made by developers bypassing Noida authority, lease premiums, penalties, and transfer charges were not recovered, and occupancy certificates were issued despite non-completion of sports infrastructure.

The court observed that the CAG report was published in 2021, yet neither the Noida authority nor the state government had taken any action -- such as filing an FIR against culpable officials or recovering dues from builders.

The only step taken by the authority was to issue notices to developers demanding payment, which remained unaddressed. The high court castigated the Noida authority and state officials for their inaction and complicity, stating that despite multiple leadership changes over the years, no official raised concerns or attempted to recover losses.

The Noida authority chief executive officer Lokesh M said, “We are studying all 18 orders so that we can comply as per the law.”

Spokesperson for the developers said, “We are studying the orders in detail and we may challenge these orders in higher courts if our legal team will advise so.”