Cancellation of commercial plots in Noida, a blow to investment
Noida/New Delhi : In what could be seen as a big jolt to investment and employment prospects in the State, the Uttar Pradesh government has cancelled the allocation of land parcels to two subsidiary companies of the M3M Group, Lavish Buildmart and Skyline Propcon, in sector 94 and 72 of Noida. The group had announced an investment of about Rs 7500 crore in the presence of Prime Minister Narendra Modi and Chief Minister Yogi Adityanath.
After obtaining all legal approvals and making initial investments, the investors were taken by surprise by the sudden news of land allocation cancellation, which occurred 18 months after the issuance of allocation letters.
Sources said an estimated investment totaling approximately Rs 4000 crore and the potential loss of over 10,000 jobs loom as consequences of this decision. The potential heavy losses in investment that the government may incur due to the cancellation of land allocations one and a half years later underscore the importance of cautious decision-making. These allotments were received at a price higher than the base price fixed by the authority.
As per available information, Levish secured a plot in scheme Septmeber 2022 among a pool of 60 plots, while Skyline acquired a plot from a selection of 55 commercial plots on December 2022, all under identical criteria.
Additionally, it has been revealed that the government's rationale for revoking land allocations was based on the involvement of fewer than three bidders, despite similar instances where allocations were made under the same circumstances. This raises concerns about the potential cancellation of other allocations on similar grounds.
“Previously, land plots for residential projects have also been canceled, resulting in ordinary buyers bearing the loss. Now, if two commercial plots are also being canceled, it will solely burden property buyers, which is unjust. Such decisions are detrimental to the economic condition of Noida city,” said Rajesh Sinha, an expert in real estate and commercial property deals.
