Greater Noida authority cancels land allotment of Parsvnath developer

The Greater Noida Authority has cancelled the allotment of two land parcels of the Parsvnath developers over dues of about Rs 281 crore.

The authority has taken this action for non-deposit of the outstanding amount of nearly Rs 281 crore on both the land plots and non-completion of both the projects.

The authority will take possession of these two land plots and allot them through a new scheme.

On the instructions of Ritu Maheshwari, CEO, Greater Noida Authority, the authority has initiated strict action against the allottees who have not paid the dues for a long time and have not completed the land projects.

The authority on Wednesday cancelled the land allotment of two projects of Parsvnath developers. Parsvnath developers was allotted 25 acres of land in Plot number 11 located here in Sector Pi in 2006 by the builders department of the authority.

According to the lease plan, in 2007 the lease deed of 1,00,095 square metre land plot was also done. The developer had paid Rs 7.14 crore till 2007 out of the total premium of Rs 33.54 crore. The remaining amount was to be paid in 13 installments by 2013. This project was also supposed to be completed in 2013 itself, but the developer neither completed the project nor deposited the dues with the authority.

The developer was also given mortgage permission in 2016, citing due payment and completion of the project, but still the developer neither completed the project nor submitted the dues to the authority.

In 2011, 2012, 2013, 2019, 2020 several times defaulter notices and allotment cancellation notices were also issued by the authority. The maximum time period of 15 years for the completion of the land project has also expired. During this period, apart from the premium amount, the outstanding amount due to the developer on account of additional compensation and late fee etc. also increased to nearly Rs 211 crore. In view of this, the Greater Noida Authority has cancelled the allotment of Parsvnath Developer's plot number 11 located in Sector Pi. Bank guarantee of nearly Rs 1.56 crore has also been seized by the authority.

The authority has said that if any liability is created on part of the authority of the builder, it will return it. Similarly, the allotment of another plot number 5 in Sector Pi, allotted to Parsvnath Developer has also been cancelled by the authority.

The allotment of this land plot was done in 2007. Out of the total premium of around Rs 11 crore, Rs 2.52 crore was paid by the builder. The remaining payment was to be made in 13 installments by 2013, but it was not done.

This project was also to be completed in 2012. The developer has neither completed the project nor deposited the dues of the authority. Meanwhile, defaulter notices were issued in 2011, 2012, 2013, 2018 and 2019 and cancellation of land allotment notices were also sent in 2014 and 2019. Apart from the total premium on this land plot, an amount of Rs 70.41 crore has been owed to the authority by the developer in the form of additional compensation, annual lease rent, time extension charges etc.

The period of 15 years for the completion of this project has also expired. Due to this, the authority has canceled the allotment of plot number five in Sector Pi, allotted to Parsvnath developer. The authority will soon take possession of this land plot as well.

Authority CEO Ritu Maheshwari says that any allottee who does not pay dues to the authority and does not complete the project will not be spared. Their land allotments will be cancelled.