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YEIDA cancels land allotment over delays and dues

By Rishabh Chamoli | 2022-10-16

In order to round up the defaulters, YEIDA cancelled land allotments of several builders over violation of the standard rules and regulations. These developers flouted the norms of the lease deeds and failed to pay the land dues.

In the last three years, Yamuna Expressway Industrial Development Authority (YEIDA) has cancelled the land allotments of 14 group housing projects over remaining dues and non compliance with guidelines set up by the authority. The authority seized the plots of two developers in 2019, three in 2021, and nine in 2022. No land allotments were cancelled in 2020.

Why were the plots seized back by the authority?
YEIDA seized the plots of the builders who failed to comply with the terms and conditions of lease deeds. The ones who did not pay the dues also came under the radar. Some of the builders were allotted land parcels years ago but did not start any construction. According to Arun Vir Singh, CEO, YEIDA, several of these developers did not even get the layout of the housing project approved.

Which developers got their allotments cancelled?
Ajnara group housing project Panorama in Sector 22A was cancelled over non payment of dues. Silverline Furnishing and Furnitures Ltd in Sector 18 and SDS Group in Sector 26A were allotted land over a decade ago but did not even initiate the project. Ten of these cancelled group housing projects are located in Sector 22 D, followed by two in Sector 18, and one each in sectors 22A and 26A. Keeping the buyers interest in mind, the authority has decided to take up and complete these projects.

However, this move has been challenged in Allahabad high court, stating that the authority is charging an unrealistic amount, and no heed was paid to the requests for rescheduling payments.

YEIDAs Amnesty Scheme 2021
In an attempt to revive stalled projects, YEIDA rolled out two re schedulement and restoration schemes for the construction companies in August 2021. Under the policy, a builder was required to pay five percent of the total due amount upfront. Once the revised repayment schedule got fixed according to the policy, the developer was required to deposit another five percent.

YEIDA also provided an opportunity to restore the cancelled plots. To restore a cancelled plot, the developer was required to pay 10 percent of the current land premium to the authority. The window to make the requisite payments remained open till August 31, 2021. However, the decision regarding the restoration of cancelled plots was taken in board meetings in subsequent months.

As per an estimate, the developers who had taken land from the authority to construct buildings owed over Rs 4,000 crore. In 2021, over 10 group housing schemes and townships were in different stages of construction.