CAG Exposes Irregularities in Greater Noida Land Allotments: ₹3,600-Cr Loss
The Comptroller and Auditor General (CAG) has identified significant irregularities in the Greater Noida Authority’s land allotment processes, resulting in an estimated loss of over ₹3,600 crore.
CagGreater Noida AuthorityLand AllotmentIrregularitiesFinancial LossReal EstateAug 17, 2025
Between January 1991 and March 2021, the authority allotted 2,580 industrial plots covering 1,130 hectares, which is roughly one-fifth of all its distributed land. However, by April 2021, only 1,341 plots (52%) were functional, and most of them became operational years late. Just 147 units, about 11%, met the deadlines specified in their allotment terms.
Of the allottees, 972 defaulted on payments, leaving ₹630 crore unpaid in land premium, lease rent, and interest. A significant portion of this, ₹374 crore, related to plots allotted between 2005-06 and 2020-21. Instead of canceling long-defunct allotments, the authority allowed defaulters to retain land, in some cases even profiting through transfers. One example cited was the allotment of 193 plots in Sector Ecotech-XI between 2007-08 and 2016-17 before the sector had basic infrastructure. The land was under litigation over acquisition and farmer compensation, delaying roads and power supply. Lease deeds for 139 plots were never executed, but rather than scrap the allotments, the authority waived penalties and extended deadlines, costing ₹142 crore in potential revenue as deeds were later signed at outdated rates.
The CAG also flagged delays of 223 to 1,804 days in issuing lease deed checklists in 10 cases, causing another ₹4-crore loss in rent. Charges worth ₹15 crore for changes in shareholding went uncollected in seven cases since 2015-16. Until 2018, the absence of strict eligibility criteria encouraged speculative trading, with five of 41 sampled allotments transferred via shareholding changes before any industrial work began.
The Sports City scheme, launched in February 2011 as an integrated township with golf courses, cricket academies, stadiums, and other international-standard sports facilities, was meant to place Greater Noida on the global sports map. Between 2011 and 2014, the authority allotted four massive plots: Sports City-1 in Sector Techzone IV to MMR Construction, Sports City-2 in Sector 27 to Supertech, REP-1 in Sector 27 to RBA Buildtech, and REP-2 in Sector 27 to Ultra Home Construction — together covering 535 acres. Rules required 70–75% of the land for sports and recreation, with tight limits on commercial and residential use.
By April 2021, 19 of 20 sub-allottees had defaulted on payments, leaving ₹2,330 crore unpaid. By March 2022, not one project was complete. Instead of world-class stadiums, the land now houses premium residential complexes with token facilities like small pools and tennis courts — little different from those in ordinary gated communities. The audit said eligibility criteria prioritized real estate experience over sports infrastructure expertise, and bidders were not required to submit detailed project reports. Consortium bidding rules and subdivision approvals enabled otherwise ineligible firms to secure land, with lead members often exiting soon after allotment.
By approving layouts that broke up land meant for large sports facilities, the authority made proper infrastructure impossible. It also granted extra Floor Area Ratio and ground coverage for housing, giving undue benefits worth ₹470 crore, and underpriced land, causing another ₹690 crore in losses. Vinod Kumar, general manager (finance) of the Greater Noida Authority, said corrective steps had been taken in light of the audit. “The CAG observed irregularities in old group housing allotments and suggested corrections. We have revised our allotment policy to prevent future errors, and our staff is taking effective measures to recover dues in line with CAG suggestions,” he said.
Frequently Asked Questions
What is the total estimated loss due to irregularities in land allotments by the Greater Noida Authority?
The total estimated loss due to irregularities in land allotments by the Greater Noida Authority is over ₹3,600 crore.
How many industrial plots were allotted by the Greater Noida Authority between 1991 and 2021?
The Greater Noida Authority allotted 2,580 industrial plots covering 1,130 hectares between 1991 and 2021.
What was the Sports City scheme supposed to include?
The Sports City scheme was supposed to include golf courses, cricket academies, stadiums, and other international-standard sports facilities.
How many sub-allottees had defaulted on payments by April 2021?
By April 2021, 19 of 20 sub-allottees had defaulted on payments, leaving ₹2,330 crore unpaid.
What steps has the Greater Noida Authority taken to address the irregularities identified by the CAG?
The Greater Noida Authority has revised its allotment policy to prevent future errors and is taking effective measures to recover dues in line with CAG suggestions.
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