The Yamuna Expressway Industrial Development Authority (YEIDA) is locked in a significant dispute with two major builders, ATS Realty and Supertech Township Project Ltd, over unpaid land dues amounting to nearly INR 1,300 crore. In response, YEIDA is considering the partial cancellation of land allotments if these companies fail to settle their outstanding debts.
YEIDA had allocated 100 acres each to ATS and Supertech in Sector 22D near the Yamuna Expressway for the development of townships. Despite this, both companies have substantial outstanding dues, with ATS owing INR 668 crore and Supertech facing a debt of INR 677 crore. In light of the pandemic-induced challenges, the Uttar Pradesh government had extended a relief package to developers struggling with stalled projects. This package included a waiver on penal interest for two years. However, YEIDA asserts that both ATS and Supertech have not availed themselves of this offer, nor have they made payments towards their revised dues after the waiver application.
ATS contests YEIDA’s claim, stating they have made significant payments and are awaiting finalisation of the remaining 38 acres and project layout approvals. They have proposed an upfront payment of INR 93.9 crore with the balance to be paid in instalments within 60 days of obtaining map approval. Conversely, Supertech references an ongoing land dispute and a court ruling to argue against YEIDA’s actions, claiming that cancelling the land allotment would be illegal. According to YEIDA, Supertech owes INR 137.3 crore as the initial payment under the revised dues structure. YEIDA plans to present a proposal to its board on June 22nd to partially cancel the land allotments for both companies. This cancellation would likely apply only to the undeveloped portions of the land, excluding areas where residential projects are already built, such as ATS’s Allure township, home to 1,800 residents, and Supertech’s Golf Country, which has 3,200 buyers.
While the immediate impact is on the builders, this dispute could have broader repercussions for homeowners in existing projects. Delays or complications in resolving the land issue could affect future development plans and amenities within these townships. It is noteworthy that not all developers in the YEIDA area face similar issues. For instance, Greenbay Infrastructure, Omnis Developers, and Logix Buildstate have already deposited portions of their revised dues under the government’s relief package. Greenbay Infrastructure, with total dues of INR 441.2 crore, has paid an advance of INR 110 crore; Omnis Developers, with dues of INR 38.1 crore, has paid INR 9.5 crore; and Logix Buildstate, with total dues of INR 248 crore, has paid INR 62 crore. As YEIDA moves forward with potential land repossession, the focus will be on how ATS Realty and Supertech Township Project Ltd respond to these mounting pressures and what solutions can be negotiated to address this substantial financial impasse.
