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Thursday, March 23, 2023
HomeNewsReal EstateYEIDA cancels allotment of two plots to Supertech 

YEIDA cancels allotment of two plots to Supertech 

The developer, however, termed the move illegal citing the insolvency proceedings that were initiated against it in March 2022 for defaulting on payment of Rs 431 crore to a consortium of banks.

The Yamuna Expressway Industrial Development Authority (YEIDA) has cancelled the allotment of two plots awarded to realty firm, Supertech, in its Up Country township in Sector 17A of Greater Noida over non-payment of Rs 86 crore dues in lease rent and additional compensation to farmers.

The Authority acted on the complaints of homebuyers who claimed that despite collecting lease rent and additional compensation from flat owners, the realtor had failed to ensure the registry of their homes. The developer, however, termed the move illegal citing the insolvency proceedings that were initiated against it in March 2022 for defaulting on payment of Rs 431 crore to a consortium of banks.

“YEIDA can’t cancel the land allotment as the company is under the Insolvency Bankruptcy Code (IBC),” chairman of Supertech Group RK Arora said.

According to officials, YEIDA had allotted 13,720 square metres of land for commercial use and another 25,000 sqm of land for institutional purposes to the realty firm. The allotment was cancelled to provide relief to homebuyers. Officers added that YEIDA will auction the 38,720 sqm of land to recover its dues and, in turn, enable the registry of flats.

In 2009, nearly 4,04,686 sqm of land (100 acres) was allotted to Supertech by YEIDA for the Up Country project and the developer immediately started selling properties in the project. Plot buyers were promised possession and registration of plots in 2012. Around 3,500 to 4,000 units, including flats, villas and plots, were sold by the Supertech in the project. Of them, around 800 have been offered possession so far. However, no homebuyer has been able to get their unit registered. While occupancy and completion certificates are pending to date, about 250 families are currently living there at present.

The Authority had served notices to Supertech thrice between June and September last year directing them to deposit the amount towards additional compensations, but no money was deposited.

On Tuesday, a group of homebuyers met CEO Arun Vir Singh over the issue. They are also planning to represent their case in the National Company Law Tribunal (NCLT). “We are ready to pay the additional compensation and lease rent per flat. We urge the Authority to complete the registry of our flats in our names on this basis. YEIDA should also take the incomplete project into their hands and complete the construction using the money recovered from the auction,” homebuyers said.

When approached, Singh said the allotment of two plots was cancelled. “We are looking into other legal remedies to provide relief to buyers,” he added.

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