The Uttar Pradesh government has cancelled the allotment of two land parcels in Noida to M3M Group subsidiaries Lavish Buildmart and Skyline Propcon, saying the companies were allotted the land at a “non-competitive rate”.M3M had paid over ₹1,000 crore for the land parcels in Noida’s Sector 72 and Sector 94.The move comes as a big blow for M3M, which is already facing Enforcement Directorate investigations.
It also puts home buyers in a quandary as both the projects were launched and parts of them sold.”Both the land parcels were allotted on the basis of a single bid, where the bidders quoted just ₹5 lakh more than the reserved price,” Anil Kumar Sagar, principal secretary – infrastructure and industrial development department, UP, said in an order issued on Friday. “It is clear that there was not proper competition and both the land parcels were allotted to a single company at a non-competitive rate.”
M3M had announced an investment of ₹700 crore in developing luxury retail and penthouses as part of a commercial project in Sector 72. The investment included ₹250 crore land cost and ₹450 crore construction cost.
It had also launched M3M The Cullinan in Sector 94. Spread across 13 acres with over 4 million square feet of saleable area, M3M had said it would invest ₹4,000 crore in the project, including land cost.
The developer had got all the approvals for the two projects, including registration from the Real Estate Regulatory Authority (RERA).
