Noida to cancel residential plot if owner doesn’t construct house within 12 years

The resolution, taken at the authority’s 219th board meeting chaired by Uttar Pradesh infrastructure and industrial development commissioner Deepak Kumar, aims to ensure that land earmarked for housing is used for its intended purpose and not left idle for speculative gains.

The Noida authority on Friday approved a sweeping decision to cancel the allotment of residential plots that remain vacant for more than 12 years, marking one of its toughest measures in recent years against non-compliance by plot owners.

The 2023 policy allowed developers to pay 25% upfront, with the balance over three years, in return for interest waivers.

Under the new rule, any allottee who has failed to build a house on their plot within 12 years will lose ownership. However, those who are currently in the process of construction will be granted a grace period of up to six months to complete work and obtain a completion certificate.

The resolution, taken at the authority’s 219th board meeting chaired by Uttar Pradesh infrastructure and industrial development commissioner Deepak Kumar, aims to ensure that land earmarked for housing is used for its intended purpose and not left idle for speculative gains.

“The board has decided to cancel allotments where houses have not been built even after 12 years. Vacant plots are not only an eyesore in neighbourhoods but also a violation of rules,” said Lokesh M, chief executive officer of the Noida authority.

Officials said that at present 17 plots have breached the 12-year threshold without completion certificates. Of these, nine have seen no construction at all and are likely to face cancellation soon. For over a year, the authority has been issuing warnings to such owners, urging them to comply.

The problem extends further: of the roughly 30,000 individual plots allotted in Noida, about 1,500 have only partial construction -- often a token room, toilet, kitchen, and boundary wall with utility connections -- merely to secure a completion certificate. These plots are later sold at a premium when market conditions improve.

“As per building bylaws, once basic facilities are constructed, the authority issues completion certificates. Many owners exploit this provision to treat plots as speculative investments rather than developing them into homes,” said an official aware of the matter.

The stricter enforcement is also aimed at ensuring land use keeps pace with the city’s growing housing demand. “Plots lying idle defeat the purpose of allotment, which is to meet urban housing needs,” another official said.

Action against developers

In a related move, the board also decided to discontinue interest waivers for developers who have failed to honour commitments under the state government’s “stalled legacy housing projects” policy. Officials noted that several builders had not cleared dues despite availing concessions.

According to the authority, 10 housing project promoters have not paid any land cost dues, 25 have made partial payments, and 35 paid only the initial 25% before halting further payments. Together, these stalled projects affect thousands of homebuyers: while registries for 3,724 apartments have been executed, an additional 5,758 are stuck until dues are cleared.

The 2023 policy allowed developers to pay 25% upfront, with the balance over three years, in return for interest waivers. The authority’s decision to get tough on defaulters signals a shift towards stricter recovery measures.

Uniform regulations

At the three-hour meeting, held at the authority’s Sector 6 headquarters and attended by senior officials including Greater Noida CEO Ravi Kumar NG and Yeida CEO RK Singh, the authority also formally adopted provisions of the Unified Regulations-2025, aligning policies across Noida, Greater Noida, and the Yamuna Expressway industrial development authority. This harmonisation will standardise allotment rules, payment schedules, and approvals across the three regions, reducing confusion for developers and buyers.

Officials said the board approved brochures detailing terms for new plot allotments for colleges, senior secondary schools, and nursing schools under the unified regulations.

While land allotment dominated the meeting, the board also cleared several key proposals for urban development and infrastructure.

One major approval was for an integrated municipal solid waste management plant at Mubarakpur in Sector 145, designed to process 300 tonnes of waste daily, generating electricity, producing fertiliser, and providing treated water.

The board also sanctioned ₹86.67 crore for retrofitting sewage treatment plants in Sectors 35, 54, 123 and 168, enabling them to recycle wastewater for park irrigation and ensure cleaner drains. Additionally, it directed that the city’s 11 minor drains, which merge into the Yamuna and Hindon, be cleaned and fitted with treatment facilities subject to Central Pollution Control Board clearance.

To bolster law enforcement, a 4,000 square metre plot in Sector 143 will be allotted for a new police station. The authority also approved the launch of a mobile application to monitor public projects, including road construction, park development, and drain repairs, aiming to improve transparency and execution.