Noida Authority to cancel allotment of plots vacant for 12+ years; Registries of 5,758 units stuck over unpaid dues

Noida Authority to withdraw interest concessions for defaulting developers who have failed to meet obligations under ‘stalled legacy housing projects’ policy

The Noida Authority has approved a major move to cancel the allotment of residential plots that have remained vacant for over 12 years, signaling one of its strictest actions in recent years against non-compliant plot owners. The board also reviewed the state rehabilitation policy based on recommendations from the Amitabh Kant Committee and decided to end interest waivers for developers who have failed to meet obligations under the ‘stalled legacy housing projects’ policy.

In its 219th board meeting, Noida Authority noted that several builders had not cleared their dues despite receiving concessions (Photo for representational purposes only) (HT Photo)

In its 219th board meeting, officials noted that several builders had not cleared their dues despite receiving concessions. According to the authority, 10 housing project promoters have not paid any land cost, 25 have made partial payments, and 35 paid only the initial 25% before stopping further payments. These stalled projects impact thousands of homebuyers: while registries for 3,724 apartments have been executed, an additional 5,758 units remain on hold until dues are cleared, the Hindustan Times newspaper reported.

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, the newspaper said.

Allottees who fail to construct a house on their plot within 12 years will forfeit ownership

At its 219th board meeting, chaired by Uttar Pradesh Infrastructure and Industrial Development Commissioner Deepak Kumar, the Noida Authority took the step to ensure that land allocated for housing is used for its intended purpose rather than held idle for speculative gains.

Under the new rule, any allottee who fails to construct a house on their plot within 12 years will forfeit ownership. However, those already under construction will be granted a grace period of up to six months to complete their work and obtain a completion certificate.

“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,” the newspaper quoted Lokesh M, chief executive officer of the Noida authority as saying.

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 paper reported that 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,” an official aware of the matter told the Hindustan Times newspaper.

Unified Regulations-2025

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, the paper said.

The board also approved an integrated municipal solid waste management plant at Mubarakpur in Sector 145, designed to process 300 tonnes of waste daily, generating electricity, producing fertilizer, 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, the report said.

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, the newspaper said.