UP Government Orders Probe into Cancelled Commercial Plot Allotments in Noida
The Uttar Pradesh government has sought a report from the Noida authority regarding two commercial plot allotments cancelled due to alleged procedural violations during the allotment process.
Noida AuthorityUttar Pradesh GovernmentCommercial Plot AllotmentReal EstateE BiddingReal Estate NewsMay 27, 2024
The matter pertains to a 13-acre land parcel in Sector 94 and a three-acre land parcel in Sector 72 along the Aqua Line Metro. The Noida authority began the allotment process on August 1, 2022. In February 2023, these plots were allotted to two real estate agencies, subsidiaries of a major real estate developer. The developer began construction on the two land parcels, covering them with iron sheets, setting up a sales office, and digging the foundations.
However, on February 28, 2024, an activist, Roop Singh, filed a complaint with the Noida authority and the Uttar Pradesh government's industrial department, alleging that the terms of brochures were violated during the allotment and there was no proper competition during the e-bidding process. The state government then directed the Noida authority's additional chief executive officer (ACEO) to compile a report about the issue.
Based on the complaint and ACEO's report, the state government on May 10, 2024, sent a plot cancellation notice to the Noida authority. The notice stated that the Noida authority kept the reserve price of ₹827.35 crore for the Sector 94 plot and ₹176.48 crore for the Sector 72 plot. However, the plots were allotted at ₹5 lakh higher than the reserve price by the Noida authority to two subsidiaries, with no competition against the norms.
The state government has also sought details of the turnover of the developer's subsidiary companies, shares, and net worth of these companies, from the Noida authority. The government has also asked why the terms were not streamlined following the Comptroller Auditor General of India's suggestions.
Meanwhile, investors and property buyers are worried about their allotment since it was cancelled. 'We bought one commercial space for ₹2 crore in the Sector 94 project and my relative bought the commercial space in the same project. We are in uncertainty and shock. Why did the Noida authority or the state government let the realtor sell this project if there were violations?' asked Preety Maheshwari, a homebuyer.
The Noida authority is a statutory body responsible for the development of Noida, a city in the Indian state of Uttar Pradesh. The authority is responsible for allotting land for various purposes, including residential, commercial, and industrial use.
The Uttar Pradesh government is the state government of Uttar Pradesh, a state in northern India. The government is responsible for the administration and governance of the state.
Frequently Asked Questions
What is the issue with the commercial plot allotments in Noida?
The issue is that the plots were allotted at a price higher than the reserve price without proper competition during the e-bidding process violating the terms of brochures
Who filed the complaint with the Noida authority and the Uttar Pradesh government's industrial department?
An activist Roop Singh filed the complaint on February 28 2024
What is the status of the plots after the cancellation notice was sent by the state government?
The plots are currently under uncertainty with investors and property buyers worried about their allotment
What is the role of the Noida authority in the allotment process?
The Noida authority is responsible for allotting land for various purposes including residential commercial and industrial use
What is the aim of the e-tender bidding process?
The aim of the e-tender bidding process is to allot plots on a competitive bid ensuring that the government gets a better price
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