Noida authority cancels land allotment of Unitech builder

Noida: In a major crackdown on errant builders, the Noida authority has cancelled land allotment of Unitech builder's group over non-payment of dues worth Rs 1,203 crore.

Authority's Chief Executive Officer (CEO), Ritu Maheshwari has directed officials to reclaim possession of the land within fifteen days from the day of issuing order i.e October 21.

As per a senior Noida authority officer, the land was issued to the builder in GH-1 of sector 113 to develop a group housing project.

Unitech builder's group allegedly came up with 17 towers without getting any map approval cleared by the authority, thus violating Noida Building Regulation, 2010.

"The action has been initiated after authority issued Multiple notices to the builder in past. The authority had also issued a show cause notice to the builder on August 24 which too went unanswered. Authority CEO ordered stringent actions against the builder on October 21 and directed officials to cancel land allotment and reclaim possession over the land within 15 days from the issuance of the order," said a senior officer of Noida authority.

The officer also informed that the builder's group owns a debt of Rs 1,203. 45 crores as EMIs, interest, lease rent, 64.7 per cent compensation. Moreover, the builder allegedly carried out illegal construction on the land without getting a proper map approval.

"Unitech group was also found to have been trying to sell a portion of the above said land amounting 19,181.50 sq metre to M/s Sethi Private Limited and M/s GMA Developers, making them third-party, without seeking the authority's permission. This is clearly violation of Uttar Pradesh Industrial sector Act 1976 and relevant sections of Lease law," the officer added.

The authority had also issued notice to Unitech builder on August 30 for dues of Rs1,539.84 crore pending against the land allotted to the builder in sector 117. The authority may further initiate similar actions in this land too.

Unitech builder is involved in the construction of 74 housing projects and around 17,000 home-buyers have invested in its projects.

Due to the financial crisis, the group has not been able to complete its projects, leaving buyers in the lurch.