UP Government Seeks Report on Cancelled Commercial Plot Allotments in Noida
The Uttar Pradesh government has sought a report from the Noida authority about two commercial plot allotments that were cancelled due to procedural violations.
Real EstateNoida AuthorityUttar Pradesh GovernmentCommercial Plot AllotmentsE BiddingCag SuggestionsReal EstateMay 27, 2024
In February 2023, these plots were allotted to two real estate agencies which are 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 complained to 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. The plots were allotted at ₹5 lakh price higher than the reserve price by the Noida authority to two subsidiaries, which means there was no competition against the norms.
The state government has sought details of the turnover of the developer's subsidiary companies, shares, and net worth of these companies, from the Noida authority. The state government has also asked why the terms were not streamlined following the CAG suggestions.
Meanwhile, the 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 began the allotment process on August 1, 2022. In February 2023, these plots were allotted to two real estate agencies which are subsidiaries of a major real estate developer.
The Uttar Pradesh government is responsible for the infrastructure and industrial development of the state. The Noida authority is a government agency responsible for the development of Noida and Greater Noida.
Frequently Asked Questions
What is the matter about?
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
When were the plots allotted?
The plots were allotted in February 2023 to two real estate agencies which are subsidiaries of a major real estate developer
Why were the plots cancelled?
The plots were cancelled due to procedural violations during the allotment process
What is the state government seeking from the Noida authority?
The state government is seeking a detailed report about these two commercial allotments and details of the turnover of the developer's subsidiary companies shares and net worth of these companies
How are investors and property buyers affected?
The investors and property buyers are worried about their allotment since it was cancelled and are seeking clarity on the matter
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