The Noida Authority has submitted a report to UP govt on two commercial plot allotments that were cancelled for alleged violation of terms and non-competitive rates.On May 10, the state govt cancelled the allotments to Lavish Buildmart and Skyline Propcon, subsidiaries of the Gurgaon-based real estate company M3M, following a complaint that the realtors who were allotted the land were not eligible.
Lavish Buildmart was allotted a plot in Sector 94 worth Rs 827.4 crore through a commercial plot scheme in Nov 2022, while Skyline Propcon was allotted a Rs 176.5-crore worth plot at Sector 72 in Feb last year.
Earlier this week, UP additional chief secretary Manoj Kumar Singh, who is also the chairman of Noida Authority, asked the industrial authority to submit a comprehensive report after M3M submitted a representation before the govt seeking the allotted land parcels be restored.
In a letter to UP govt, the developer expressed their dismay over the cancellation of the land allotment without hearing their side.
After registering the land parcels last year and obtaining other approvals, M3M announced luxurious commercial-cum-residential projects in Sectors 94 and 72. The company launched M3M The Cullinan in Sector 94, a 13-acre project with over 4 million square feet of saleable area.
A commercial project, M3M The LINE – Luxury Retail and Pentsuites, was announced in Sector 72. “Since the allotment, over 1,400 customers have joined hands and trusted us to build their future assets. An amount in excess of Rs 1,500 crore has been invested by the companies, including payment made to the Authority,” M3M stated. The company has also started construction at the two sites.
The cancellation of land allotment, meanwhile, left hundreds of investors and property buyers worried. Sunil Julka, a homebuyer who invested Rs 1.5 crore in The Cullinan, said, “I invested in this project in March after thoroughly checking the property’s background. The land was allotted by the Authority and has UP-RERA registration. What more can a homebuyer do before investing in a property? I bought this flat after selling my plotted house, and currently, I am living in a rented accommodation.”
Saurabh Gupta, who invested over Rs 1 crore in the project, asked if homebuyers could not trust govt allotments, whom could they believe. “We’re keeping our fingers crossed, hoping the govt will reconsider its order keeping homebuyers in mind,” he said.
The cancellation order, issued by Anil Kumar Sagar, principal secretary (UP industrial development department), stated, “In both cases, the bid quotes were increased by only Rs 5 lakh over the reserve price. Although there is a provision to consider a single bid after extending the tender date twice by the Authority, the aim of any tender is to get a competitive rate, which was not the case here.”
Noida Authority CEO Lokesh M told TOI that the report has been submitted.
