The Uttar Pradesh cabinet has approved the Lucknow Development Authority’s (LDA) proposal to release 2,747 mortgaged plots in Sushant Golf City, allowing the authority to proceed with a structured process for releasing the properties while continuing development work in the township. The decision was taken at the state cabinet meeting held on September 15, 2026.
The plots were sold by Ansal Properties & Infrastructure Ltd despite being mortgaged with the LDA. According to LDA vice-chairperson Prathamesh Kumar, the registries of the 2,747 plots will not be cancelled. The decision is intended to protect the interests of plot buyers and prevent them from facing further legal uncertainty over properties they had already purchased.
As part of the township agreement, Ansal had mortgaged 3,489 plots with the LDA as security. The arrangement was intended to provide the authority with security in the event that the developer failed to complete the promised development work. Under the arrangement, the authority could sell the mortgaged plots and use the proceeds for completing the development of the township.
However, rules prohibit a developer from selling mortgaged plots without prior permission from the LDA. Despite this restriction, Ansal sold 2,747 of the mortgaged plots. The situation subsequently required the authority to consider a mechanism that could address the position of the buyers while also allowing the pending development work at Sushant Golf City to proceed.
According to Kumar, cancelling the registries of the affected plots would have left the plot owners in uncertainty. The LDA therefore proposed releasing the mortgaged plots instead of cancelling their registries. The state cabinet has now approved this proposal.
Following the cabinet approval, the LDA will place a proposal before the National Company Law Tribunal (NCLT) to facilitate completion of the township. The authority will initiate further action after receiving the required permissions.
The development process at Sushant Golf City will be carried out in stages. The LDA will undertake work in partially developed and undeveloped portions of the township. The release of the mortgaged plots will take place sector-wise or pocket-wise after the required development work has been completed and completion certificates have been issued.
The sector-wise approach links the release of the plots with the progress of development in the respective areas. This means that the properties will not be released across the township at one time. Instead, the LDA will assess development completion in individual sectors or pockets before releasing the corresponding mortgaged plots.
The proposal also provides an option for plot owners seeking an early release of their properties. Owners can seek release before a completion certificate is issued by depositing a guarantee with the LDA. The guarantee will be equivalent to a fee fixed by the authority’s board. The deposited amount will be refunded after the required development work is completed and the relevant completion certificates are issued.
The cabinet decision therefore addresses two aspects of the Sushant Golf City issue. One is the status of the 2,747 plots that had been sold despite being mortgaged with the LDA. The other is the need to complete development work in partially developed and undeveloped parts of the township.
For the affected plot owners, the decision means that their existing registries will remain intact. The LDA will instead follow a process for releasing the mortgaged plots based on development progress and the issuance of completion certificates.
The guarantee provision gives owners another route where they require an earlier release. Under this arrangement, an owner can deposit the amount determined by the LDA’s board and seek release before completion certification. The amount will subsequently be refunded after the required development work is completed and certificates are issued.
The next stage will involve the LDA placing its proposal before the NCLT and obtaining the permissions required to proceed. The authority will then undertake development in the relevant areas and release the affected plots sector-wise or pocket-wise in accordance with the approved framework.
The cabinet’s decision provides a defined process for dealing with the 2,747 mortgaged plots while keeping the completion of pending development work within the LDA’s proposed framework. The process will now move forward through the required regulatory and tribunal-related steps.
