Failed to clear dues, Noida cancels housing plot allotment to developer in Sports City – it's impact and legal fallout

File photo

The Noida Authority has revoked the allotment of about 1.1 lakh sqm of land to Lotus Greens Constructions, the lead developer of the Sports City project in Sector 150, after the firm failed to clear land dues despite repeated reminders over the past nine years.

This marks the first time the authority has cancelled a group housing plot in the city’s ambitious Sports City housing project, which was launched in 2014, Hindustan Times reported.

According to the officials, the authority will now take possession of the plot and re-auction it to generate revenue. “We have cancelled the allotment because the developer failed to clear the land cost dues despite repeated reminders. Now we will take back possession of the land and use it for its intended purpose,” HT quoted Lokesh M, Chief Executive Officer of Noida Authority, as saying.

However, a spokesperson for Lotus Greens said the authority’s action was not valid, citing a “non-coercive” order from the Supreme Court in the ongoing case.

Background of the Sports City scheme

The Sports City scheme, initiated in 2014, involves allotting land to developers for ultra-luxury group housing projects alongside world-class sports facilities. Under the scheme, 30% of the land was designated for housing, while the remaining 70% was intended for sports infrastructure development.

Noida Authority had initially allotted four plots across sectors 79, 150, and 151 under the scheme. Over the years, these projects have faced prolonged litigation between the authority and developers, causing delays for around 30,000 homebuyers whose possession of their homes has been stalled since 2014.

Regarding Sector 150, the authority said that an additional 131,800 square metres of land was available. Lotus Greens had agreed to take this extra land and make the required payments. However, in the past nine years, the developer has not cleared the dues for 110,000 square metres, prompting the recent cancellation. It is notable that the developer has paid for over 20,000 square metres of the land, which remains unaffected.

Impact on development and legal concerns

Lotus Greens is also developing a Golf Course and other sports facilities within the Sports City project. The cancellation of 110,000 square metres could impact the development of these facilities, Noida Authority officials said.

However, the developer argued that the cancellation violates a Supreme Court order, which has directed that no coercive action should be taken while the case is sub-judice. “We fail to understand how the authority can take such action while the Supreme Court is hearing the matter,” the spokesperson said.