New Delhi: The Yamuna Expressway Industrial Development Authority (YEIDA) is contemplating the cancellation of plot allotments to two prominent developers, ATS Realty Private Limited and Supertech Township Project Limited, due to their failure to settle land dues despite receiving concessions under the Amitabh Kant package. The issue will be presented before the YEIDA board on June 22 for a final decision.
The Kant package, designed to provide financial relief to developers, included waivers and a two-year zero-period relief, which exempted builders from interest and penal interest during the COVID-19 period, effectively reducing the outstanding dues by approximately 20%. Under this package, developers were required to pay 25% of the net dues within 60 days to commence the registration process of flats. Despite multiple extensions and reminders, both ATS and Supertech have failed to meet their financial obligations. ATS Realty owes YEIDA Rs 668.14 crore for a 4.09 lakh square metre area allotted in June 2013. After a relief of Rs 136.77 crore under the Kant package, the net dues stand at Rs 531.37 crore. YEIDA had asked ATS to pay Rs 132.84 crore, which is 25% of the outstanding dues, by February 29, 2024, but the payment has not been made.
Similarly, Supertech Township owes Rs 677.79 crore for a 4.07 lakh square metre area allotted in August 2011. Following a Rs 128.68 crore relief, the net dues amount to Rs 549.11 crore. The developer was required to pay Rs 137.28 crore by April 28, 2024, but failed to comply. An official from YEIDA stated, “Despite multiple opportunities provided to the builders to submit their dues and initiate the registration of flats, they have not responded. We are now placing this matter before the board to seek action, which may include the cancellation of their plots.”
However, Supertech has contested this move, citing a “no-coercive order” issued by the Allahabad High Court due to an ongoing land dispute. A Supertech official stated, “The cancellation of plots would be illegal under the current court order.” The potential cancellation would affect approximately 2,400 units in the ATS project and 3,200 units in the Supertech project in Sector 22D of the YEIDA area. Should the board approve the proposal, the authority plans to reclaim the land parcels, excluding the residential portions, to recover the dues.
This development marks a significant enforcement of the Kant package rules and underscores YEIDA’s commitment to ensuring compliance among developers. The decision pending on June 22 will set a precedent for how similar cases might be handled in the future, emphasizing the importance of financial accountability and adherence to regulatory frameworks within the real estate sector.
