Trouble may be in store for two prominent builders with the Yamuna Expressway Industrial Development Authority (YEIDA) planning to cancel the allotment of their plots as they have not submitted their land dues despite getting relief under the Amitabh Kant package.
Officials said that ATS Realty Private Limited and Supertech Township Project Limited have not paid their dues despite multiple chances.
Both builders have their projects in Sector 22D of YEIDA area. Officials said a report in this regard will be placed before the YEIDA board on June 22 to take a final decision. If the board approves the proposal, this will be the first action by the Authority against any builder under the Kant package.
“Yamuna Authority gave both builders many chances to submit the dues, so that the registration of flats can begin as intended under the Kant package. However, ATS and Supertech township did not reply to our letter. So, we will now place this matter before the board, seeking action against the builders, which will involve cancellation of their plots,” said Dr Arun Vir Singh, CEO, Yamuna Authority.
When contacted, Supertech Chairman R K Arora said the plots can’t be cancelled as the Allahabad High Court has already issued a “no-coercive order” since the land is in dispute. “This action of YEIDA will be illegal if they do this,” he told The Indian Express.
A spokesperson of the ATS group could not be contacted for comment.
There are around 2,400 units in the ATS project and 3,200 units in Supertech project. Singh said that if the proposal is approved by the board, the land parcel, excluding the residential portions, will be cancelled to recover the land dues of the authority.
The data available with the authority shows that ATS Realty owed Rs 668.14 crore to YEIDA as land dues for an area of 4.09 lakh square metres (around 101 acres land), which was allotted to the company in June 2013.
However, after applying the Kant relief package formula, a total of Rs 136.77 crore relief was granted to the builder, bringing down the net dues on ATS to Rs 531.37 crore. Communicating this to the developer, Yamuna Authority, through its letter dated February 29, 2024, asked it to pay Rs 132.84 crore, which is 25% of the outstanding dues, to start the registration process.
Similarly, the total land dues on Supertech for its 22D project was Rs 677.79 crore for an area of 4.07 lakh square metres (around 100 acres), which was allotted in August 2011.
However, after deducting Rs 128.68 crore relief granted as per Kant package, the net dues on the company is now Rs 549.11 crore. On February 29, the authority wrote to Supertech to pay Rs 137.28 crore as 25% of net dues to start the registry. However, the company did not deposit the money despite the 60-day period for payment expiring on April 28.
The Kant package provides several waivers to builders, including a two-year zero-period relief, taking into account the Covid period, which translates to around 20% waiver of total outstanding land dues.
Under the zero-period waiver clause, interest and penal interest will not be levied on the builder for two years, and the installments will be shifted beyond it. However, there is a provision that registration of flats could begin after the builder pays 25% of the outstanding amount (land dues) within 60 days.
