GNIDA cancels allotment of Sports City member; issues RCS worth over Rs 300 crore

GREATER NOIDA: The Greater Noida Authority on Tuesday cancelled the allotment of land in Sector-27, granted to Aura Buildwell Pvt Ltd after a meeting chaired by CEO Narendra Bhushan, where this allotment was discussed among the Builder Commercial Department and the Finance Department.

At this meeting, the Supreme Court of India's landmark decision in the Amrapali Builders case was brought up after which a decision was made to design an effective working principle that can guide officials to run a campaign asking allottees to pay what they owe at the appropriate time.

With respect to this decision, under the authority's Sports City Programme, the lease deed for a plot at Sector 27 was executed in favour of Aura Buildwell Pvt Ltd, which made it a consortium member on July 8, 2015, for which a possession letter was given on July 9 of the same year.

According to clause 13 of the lease deed, Aura Buildwell Pvt Ltd was to execute 15 percent of the work should have been completed in three years' time, which is before July 8, 2018, but it was found that the allottee had not even started any work on the plot as at the present date.

By this action, the consortium member has left an overdue amount of Rs 134.23 crore on the Greater Noida Authority. Citing this reason and others, the decision to cancel the allotment for Aura Buildwell was taken. Moreover, Omaxe Ltd, earlier known as Omaxe Construction owes the authority Rs 38 crore, Nitishree Developers Pvt Ltd owes Rs 31.50 crore, Maple Realcon Pvt Ltd owes Rs 11.78 crore, JMDR Infra Project Pvt Ltd owes Rs 22.80 crore, Diligent Builders Pvt Ltd owes Rs 19.02 crore, AVJ Developers Pvt Ltd owes Rs 63.25 crore, ANS Apartments owes Rs 124.17 crore, Omaxe Buildhome Ltd owes Rs 30.77 crore in similar cases. The Greater Noida Authority has issued recovery certificates to all these builders, with the expectation of collecting the total debt of Rs 307.76 crore. The decision to issue RCS to all other defaulters was also taken at the meeting.