Greater Noida: The Yamuna Expressway Industrial Development authority (YEIDA) has cancelled the plot allotment of two builders' groups as they have failed to develop any project on the land even after years of taking possession over the land. Officials said that the two builders also own crores of rupees as dues to the authority.
As per a senior YEIDA officer, the land allotment of two builders' groups– Lotus Buildmart and Swikrati Infracon –have been dismissed.
"The two builders were allotted plots in 2011 under sector 22 D along the Yamuna Expressway but since then they didn't develop any project on the site. Moreover, they didn't even apply for the approval of map. The authority had served several notices to them in past and the actions were taken after they failed to respond any of the notices," the officer said.
As per the information, Lotus Buildmart builder group was allotted over 10,000 square meters of land for developing a project. The builder had made initial payments against the land but owns nearly Rs 7 crores as due amount. Apart from this, the Swikrati Infracon group was allotted 25,000 square meters of land in sector 22 D against which the builder failed to clear dues of Rs 16 crores to the authority.
YEIDA is facing financial crisis as the builders who are developing group housing projects in the city, are failing to pay over Rs 3,500 crore land dues to the authority. The authority has been issuing cancellation notices to these builders who have cited dip in sales of flat, failing to clear the dues. This has also been troubling homebuyers, who have spent their life time savings to buy flats in group housing projects and are waiting for possession.
Under the policy, the authority allots land to builders and the payment is to be made on instalment basis. The builder has to deposit 10% of the total land cost at the time of allotment and the remaining amount has to be paid in instalments. However, some of fraudulent builders take advantage of policy and flee after taking money from the innocent homebuyers, leaving incomplete projects behind.