
According to senior officials from the Noida Authority, they are currently facing challenges in recovering land cost dues from owners of commercial projects. This issue has arisen as many of these project owners have filed for bankruptcy and are facing trial before the National Company Law Tribunal (NCLT). The authority has identified 10 major defaulters who collectively owe them at least ₹8,300 crore.
These defaulting realtors had acquired land from the Noida Authority on an installment basis to develop commercial or mixed-land use buildings. However, they later defaulted on their payments, resulting in a significant loss for the authority. The work on these commercial projects has come to a halt, and the owners have not made any land cost payments for several years.
To address this situation, the Noida Authority has instructed its legal department to thoroughly study the court cases associated with these defaulters. The aim is to find ways to recover the outstanding dues. The authority plans to lift the stay orders obtained by the owners and seek permission from the NCLT to recover the dues.
The authority has identified the largest defaulter as a mega commercial project located in Sector 94, with dues exceeding ₹2,100 crore. The owner of this project has filed a petition against the authority’s notice and obtained a stay order from the high court.
The second largest defaulter is another commercial project in Sector 124, with dues of approximately ₹2,000 crore. The NCLT has recently admitted an application by a company that invested money in this project.
The third top defaulter owns a commercial project in Sector 16B, owing the authority ₹1,450 crore. The fourth defaulter owns a commercial project in Sector 52, with land cost dues amounting to ₹1,100 crore.
The Noida Authority has stated that these defaults have put them in a financial crisis. Once the legal department receives approval from either the Allahabad High Court or the NCLT, the authority plans to take intensified action against these projects.
Lokesh M, the Chief Executive Officer of the Noida Authority, has mentioned that they are carefully reviewing each case and will take appropriate action. In some instances, the authority may cancel the allotment and allocate the undeveloped land to a new developer.