In first action under Kant package, YEIDA cancels allotment of two key builders over unpaid dues

Leaving out the third party interests in the said plots, YEIDA, in its 81st board meeting on Wednesday, cancelled the land allotment.

With this, the process of registration of at least 4,500 flats is set to get further delayed. While Supertech has 3,200 units in the project, Sunworld has 1,400 units.

When contacted, Supertech Chairman R K Arora said the plots can’t be cancelled as the Allahabad High Court has already issued a “no-coercive order” since the land is in dispute.

“Everywhere, third party rights are created and the HC has already issued no coercive on recovery because the land is already in dispute and possession to homebuyers is also affected. Above action is illegal and it is a contempt of the court order,” he told The Indian Express.

YK Gupta, director of Sunworld, said the company has filed a case against YEIDA in the Allahabad HC. “If the authority has decided to cancel the land allotment, it is an illegal decision,” Gupta added.

Data with the authority shows that Sunworld Infrastructure owed Rs 816.12 crore to YEIDA as land dues for an area of 4.04 lakh square meter allotted to the company in August 2011. After applying the Kant formula, Rs 156.68 crore relief was granted to the builder, bringing down the net dues to Rs 659.44 crore.

Yamuna Authority asked the developer to pay Rs 164.86 crore, which is 25% of the outstanding dues, to start the registration process.

Similarly, the total land dues on Supertech Township for its 22D project was Rs 677.79 crore. However, after deducting Rs 128.68 crore relief, the net dues on the company is now Rs 549.11 crore. The authority wrote to Supertech to pay Rs 137.28 crore as 25% of net dues to start the registry.

However, the company did not deposit the money despite the 60-day period for payment expiring on April 28.

On June 18, The Indian Express reported that YEIDA is planning to cancel the allotment of plots of Supertech and ATS builders as they have not submitted their land dues. ATS, which has paid Rs 5 crore, has been given an extension to pay the rest of the 25% dues by August 31.

The Kant package provides a number of waivers to builders, including a two-year zero-period relief, taking into account Covid period, which translates to around 20% waiver of total outstanding land dues.

Under the zero-period waiver clause, interest and penal interest will not be levied on the builder for two years, and the installments will be shifted beyond it. However, there is a provision that registration of flats could begin after the builder pays 25% of the outstanding amount within 60 days.

A total of 11 builders were roped in under the plan by the Yamuna authority. Of these, five developers have paid 25% of net dues while four builders are in NCLT. Three developers — Logix Buildstate, Starcity Developers & Ajay Realcon — have paid 25% of net dues while GreenBay Infrastructure, Omnis Developers and ATS Realty have partially paid the amount and have obtained a time extension to pay remaining dues.

Apart from this, other developers are in insolvency tribunal or court.

Other decisions:

YEIDA board took decision on 16 other issues. These include:

• In-principal approval for feasibility study to establish South Asia’s largest Exhibition, Convention & MICE project in 200-acre area.
• Development of new sectors through Engineering Procurement & Contract (EPC) Mode on the lines of Ministry of Road Transport & Highways (MoRT&H) rules and standards.
• Now onwards, successful bidder in case of road works will undertake the responsibility of its maintenance for five years, besides five years of defect liability period after the construction. “This way, the responsibility of those who construct poor quality roads will be determined,” said an official.