Yeida removes two real estate developers allocations owing to unpaid debt

By Bricksnwall | 2024-06-27

Yeida has chosen to revoke the property pieces that Supertech and Sunworld Infrastructure, two realtors, were given after they were unable to pay their land costs.

The land parcels assigned to realtors Supertech and Sunworld Infrastructure in Sector 22D for the construction of townships were cancelled by the Yamuna Motorway Industrial Development Authority (Yeida) during its board meeting on Wednesday. This was due to the realtors' persistent failure to pay their land cost obligations despite numerous warnings.

At a meeting with eleven realtors on February 29, 2024, Yeida warned them that their allotments would be cancelled if they did not pay their dues within the next sixty days.

At the 81st board meeting, which took place on Wednesday at the Greater Noida sector Omega 1 office, the board, led by principal secretary Anil Sagar, made the decision to revoke the two realtors' allotments.

According to officials, the cancellation of the two realtors' allotments was done in accordance with the terms of the policy that the Uttar Pradesh government announced on December 21, 2023. The policy offered a staggered repayment schedule and interest rebates for "stalled legacy housing projects" for the two years of COVID-19.

However, the realtors were still unable to pay the outstanding balances for these two home developments, and the decision to cancel the allocation was made. Since many homeowners purchased units in both projects, the board has decided to rescind the allocation of the two projects, with the exception of the area where third-party rights are still in place. This action will not impact the interests of homebuyers, according to Yeida CEO Arun Vir Singh.

According to officials, Supertech Township, which has ₹677 crore in outstanding debt, was given 100 acres of land by the Yeida in 2011. The project comprises 3,200 homeowners.

The Allahabad High Court has already ruled that no coercive action for recovery may be launched in cases where third-party rights are formed because the land is already disputed. It has hindered our ability to give homebuyers possession since we have not been given the entire parcel of land. The Yeida board's conduct is unlawful and contempt of court, according to Supertech Group chairman RK Arora.

According to officials, Yeida also gave Sunworld Infrastructure 100 acres in 2011 for a housing township, but they neglected to pay the outstanding ₹816 crore in land costs. The precise number of homebuyers who contributed to the initiative is unknown to Yeida. However, Sunworld Group stated that all homeowners received their money back.

"The Yeida's action is unlawful because they failed to give us the possession of the land on time," a spokesman for Sunworld Infrastructure stated. Eight years after the allotment, in 2019, we were granted possession of the 100 acres that we had paid approximately ₹100 crore for. We are requesting eight years of interest-free credit.

Eleven real estate agents in Jewar have developments located near the greenfields of Noida International Airport along the Yamuna Motorway.

Of these 11 realtors, six benefited from the state government program, paid 25% of the dues, and promised to pay the remaining balance on schedule. There is a lawsuit involving three realtors in several courts. The board has stated unequivocally that the interests of buyers will be upheld. And if they submit the necessary paperwork, the developer's second project, the registry at Supertech Limited, would be carried out," Singh stated.

The board has also chosen to build a new road that will be 8.25 km long and 30 m wide, connecting the Greenfield airport to the Yamuna Motorway. The National Highways Authority of India (NHAI), which will invest ₹63 crore in this project, was given permission by the board to create this route. Yeida has promised to supply the necessary land in exchange for the same.

The board also decided to facilitate easy access and departure from Sector 21, where the 1,000-acre Film City project has been proposed, with work on it probably about to begin. After all requirements are finished, Bayview Project LLP is expected to lay the project's foundation stone, according to officials.

It is anticipated that Yeida will grant approximately 200 acres to Indian Exposition Mart Limited, which has requested a plot for the construction of an international convention and commercial center with the capacity to host global events. The board has requested that a feasibility analysis be conducted prior to project land allocation.

Source: Hindustan Time