The Noida Authority has issued a show-cause notice to Three-C Green Developers, promoter of the Sports City in sectors 78, 79 and 101, for violating lease terms and not completing the project 12 years after land allotment.
Twelve subsidiary companies that were sub-leased lands for developing group housing projects have also been sent notices.
Three-C Green Developers was allotted 180 acres in the three sectors in 2011. According to the lease terms, the developer had to complete the project within seven years.
Sport City was pitched as a lifestyle concept, which would involve developing housing around sports facilities in an integrated space. It has instead shaped into a vexing problem in Noida’s troubled real estate sector because sports facilities have not been developed and licence conditions can be met only when they are. A parallel tussle is on between developers and the Noida Authority over land dues. As a result, thousands of homebuyers in the project have been unable to register their flats.
On March 17, the Authority’s planning department asked Three-C Green Developers to respond within 15 days as to why the conditions of allotment and approved map were violated. Officials said if the developer did not provide a satisfactory reply within the stipulated period, it would be deemed that they have nothing to say and accordingly cancellation proceedings would be initiated as per the terms of the lease deed.
Senior manager (planning) Devendra Nigam told TOI that under the Sports City project, 70% of the land was earmarked for developing sports and related activities and the remaining for residential and commercial purposes.
“However, the developer flouted the rules and did not complete the sports facilities. One of the lease deed terms was that Rs 410 crore would have to be spent on sports activities, but only a negligible amount has been spent so far. The developer also failed to clear the Authority’s dues. Therefore, the show-cause notice was issued,” Nigam said.
The notice stated that 15% of sports facilities were to be developed within three years of the date of allotment, while all the sports facilities were to be provided within five years. The project was to be completed seven years from the date of allotment, but the developer failed on each timeline.
Group housing projects were also taken up prior to completing the sports facilities. According to the lease deed, no boundary wall could be constructed on sub-divided plots so that residents can use the common sports facilities, but the condition was also violated.
For the Sports City project, land parcels were allotted at four places in Noida. Residential and commercial land use was added to make the project lucrative to developers.
Two land parcels — one in sectors 78, 79 and 101 and another in Sector 150 — were allocated to Three-C Green, while one each in sectors 150 and 152 were given to Logix Infra Developer and ATS Homes, respectively.
Three-C Green Developers is in the middle of a corporate insolvency resolution process, so it is being represented by resolution professional (RP) Gyan Chand Mishra.
The RP’s counsel Deepak Agarwal told TOI that it has already filed its response to the Authority. “The notice issued by the Authority is misconceived and misplaced as it has already lodged its claims in the CIRP in August last year and is thus subject to the outcome of the final decision of the resolution process,” he said.
The RP, in its letter, also pointed out the faulty land acquisition process in the project and ongoing court cases in Allahabad high court filed by Three-C Green and one of the subsidiary companies. It states the sports complex obligations of the developer are only with respect to the land area admeasuring 53 acres and not for the entire Sports City as the land has been subleased.
