NOIDA: The Allahabad High Court’s Lucknow bench has issued an injunction against the Yamuna Expressway Industrial Development Authority (YEIDA) from canceling Greenbay Infrastructure’s land allotment for its 100-acre township project in Sector 22D.
YEIDA is prohibited from proceeding with the cancellation until the state government addresses the company’s two revision applications seeking relief under the “zero period” policy, which concerns non-possession of 30-35% of the land.
The “zero period” policy allows developers some relief from interest and penalties on unpaid land dues for projects that have been stalled.
This interim order, issued on July 30, came just one day before YEIDA’s deadline for the builder to pay Rs 118 crore in outstanding dues or risk cancellation of the land allotment.
Justice Pankaj Bhatia, who presided over the case, instructed that no coercive measures should be pursued based on YEIDA’s cancellation notice from July 8.
Considering that the realtor filed a revision application with the state government in January, the court ruled that while the matter is under review, YEIDA cannot revoke the land allotment. The state government has been directed to resolve the interim relief application within 10 days and to complete proceedings on the revision application filed by Greenbay within four weeks.
Greenbay has indicated that it has paid Rs 60 crore of the Rs 118 crore owed and is requesting “zero period” relief from the date of allotment, citing issues with incomplete land possession and stalled construction due to farmers’ resistance in vacating a third of the land.
The dispute originates from a prolonged conflict between the developer and YEIDA. The land was granted to Greenbay in February 2011, with the lease deed executed in March 2012.
In January 2014, Greenbay subleased a portion of the land to Emerald Properties for a group housing project, subsequently launching the Golf Village township with 691 plots. However, the developer reported it could not take possession of two-thirds of the land until 2019, with about one-third still beyond its control. YEIDA officials stated that repeated defaults by the developer prompted the latest ultimatum under the UP government’s “legacy stalled projects” policy initiated on December 21, 2023, aimed at reviving long-delayed housing initiatives.
Upon consent from the developer, the dues were recalculated to Rs 441 crore, with Greenbay required to pay 25% (Rs 110 crore) by April 28, 2024. Following this deposit, YEIDA issued a revised schedule for the remaining 75% dues in July 2024.
This schedule was further amended in August when the developer requested a recalculation of the amount, including Rs 2.4 crore in unpaid lease rent from 2021 and applying a 10% simple interest rate.
Per the revised payment plan, the first installment was due on January 15, with the final payment required by July 15, 2026.
Subsequent to the initial payment, YEIDA permitted the developer to proceed with tripartite sublease registrations for the corresponding land areas.
In October 2024, Greenbay sought another extension for the remaining dues, citing ongoing difficulties in securing complete physical possession of the land, with about 30% still under cultivation by farmers.
Acknowledging this situation, YEIDA provided a three-month extension in November 2024, extending the due date from January 15 to April 15, 2025.
However, Greenbay failed to meet this extended deadline, and instead submitted a letter on April 15, requesting permission to sublease a 4,330-square meter commercial plot within the township, while also seeking a revision of its payment terms.
During a board meeting on June 18, YEIDA issued a final deadline of June 30, demanding Greenbay deposit approximately Rs 118 crore or risk the cancellation of the Sector 22D township project. This deadline was later extended to July 31. In a letter dated July 8, the Authority clarified that this was the last ultimatum. The company stated it has paid Rs 60 crore and intends to settle the remaining dues but insists on having its grievances considered.
Amit Kumar Sharma, Project Director for Greenbay, stated, “To facilitate these financial transactions, we require immediate permission to proceed with the sublease of the commercial plot. This authorization is essential for us to take necessary actions towards meeting our payment commitments. We acknowledge that any failure to adhere to the agreed timeline may result in the cancellation of the sublease without objection.”
