A month after cancellation, UP govt allows two M3M firms to resume construction on Noida plots
On May 10, the UP govt had cancelled the award of land parcel to the two firms following complaints that the allotment was made at non-competitive rates
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The company said that more than 1,400 customers have invested in the scheme and both the firms have together made an investment of Rs 1,500 crore, including payment to the authority.
Revoking a month-old order, the Uttar Pradesh government has allowed two subsidiaries of real estate developer M3M India to continue construction work on two commercial plots worth Rs 1,000 crore in Noida.
On May 10, the UP government had cancelled the award of land parcel to Lavish Buildmart Private Limited and Skyline Propcon Private Limited — both M3M group companies — following complaints that the allotment was made to the company at “non-competitive rates”.
Now, in a letter to Noida Authority CEO Lokesh M, Anil Kumar Sagar, Principal Secretary of UP Infrastructure and Industrial Development Department, said on Tuesday that after due consideration, a decision has been taken to revoke the cancellation order.
However, the letter did not mention why the government cancelled the allotment in the first place. CEO Lokesh M could not be contacted for comment either.
While cancelling the allotment in May, the department had said that “the aim of any tender is to get a competitive rate, which was not the case here”.
Following the cancellation order, Yateesh Wahaal, the director of M3M India, wrote to Nand Gopal Gupta ‘Nandi’, Minister for Industrial Development and Export Promotion, that it was “completely contrary to the law of natural justice” that the company was not given any chance before taking the decision.
“Lavish and Skyline were not the only successful bidders (in the state) where total number of bidders were less than three. There are other land parcels which have been allotted, where the bidders were less than 3… the auction was done after following all the conditions,” said Wahaal in his letter dated May 13.
Speaking on the revocation order, an M3M spokesperson said, “We welcome the decision of the UP government. We are committed to our investment in Uttar Pradesh and will ensure jobs and opportunities, along with creating a masterpiece for the state. This revocation marks a positive step towards restoring confidence among investors and developers…”
The company said that more than 1,400 customers have invested in the scheme and both the firms have together made an investment of Rs 1,500 crore, including payment to the authority.
M3M is developing a project named “M3M The Line- Retail and Pentsuites” in sector-72 and “M3M The Cullinan Avenue- An Uber-Luxury Mixed use development” in Sector-94. The 3-acre plot in sector-72 was allotted to Skyline Propcon for Rs 176.5 crore in February 2023 while another 13-acre plot was allotted to Lavish Buildmart for Rs 827.3 crore in November 2022.
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