Can’t sell, buy plots in Sports City: Board

NOIDA: In a major decision impacting the realty market, the Noida authority in its 201st board meeting on Monday, banned the sale and purchase of plots of group housing land allotted under a scheme named Sports City.

The move comes after the authority realised that most builders hardly had developed any sports facilities flouting rules, and only “indulged in sale/ purchase” of plots meant for housing and sports facilities, said officials. The authority’s board also formed a committee that will study each project in the Sports City scheme and submit a report in the next board meeting, expected to be organised in next three months or so, said officials.

“The board has decided to re-plan the Sports City scheme as developers did not develop any facilities for the same. Also, the authority will not provide any further land for group housing under this scheme,” said Ritu Maheshwari, CEO, Noida.

The authority in 2011 allotted 150 to 200 acres of housing land to developers. One plot of land for sports measuring 150 acres was allotted in 2016, said officials. As per the provisions of the scheme, builders were to develop housing on 30% of land while remaining was to be used for sports facilities.

“The committee will prepare a separate report about each housing project stating how much of sports facilities have been developed. The next board meeting will decide the future course of this scheme. We have banned the sale of plots to make sure no third party rights are created further,” said Maheshwari.

The Comptroller and Auditor General (CAG) had, in November 2017, started the audit of all allotments, including sports schemes, following allegations of irregularities, said officials of the authority.

“The CAG has made some tentative observations about the Sports City scheme. In view of these CAG observations, we put forth this proposal in the board.

We will seek the state government’s directions on this issue and work accordingly,” said Maheshwari.

Sports facilities were supposed to come up in seven years’ time, said officials. Some developers have set up housing projects in Sector 150. One sports city scheme is located in sectors 78 and 79 each, one in 152 and two in Sector 150, said officials.

“The committee will check if the developer has built sports facilities or not. Some developers have developed the required facilities, therefore, they will get the occupancy certificates and permission to execute sub-lease deeds of the flats to homebuyers, as per rules,” said Maheshwari.

The authority has decided not to issue sub-lease deed (registry) permission if the sports facilities are not there.

Builders, meanwhile, said the authority should not stop the sub-lease deed.

“The authority should allow sub-lease deed permission because innocent buyers are not at fault. Also, the developer should be asked to develop the facilities in a time frame. The issue should be dealt with positively because homebuyers and developers both have stake in these projects,” said Prashant Tiwari, president of confederation of real estate developers association of India (CREDAI), of Western UP chapter.