NOIDA: The UP government has revoked a 2022 decision by the Noida Authority to cancel the allotment of a plot in Sector 106 to a company, citing delays in handing over possession.
Although the lease deed was signed in March 2017, the company could not secure possession or initiate construction due to a high-tension power line and tower that the Authority did not remove until September 2025.
In its order, which may have implications for numerous similar disputes in Noida and Greater Noida, the state government emphasized that allotments cannot be canceled when vacant and encumbrance-free possession has yet to be granted to an allottee.
This case involved the allotment of a 2,000 square meter plot to the IT/ITES firm GPL Infrabuild on April 1, 2016, which intended to establish a software unit. However, the Authority failed to clear the encumbrance or offer an alternative plot.
The firm argued that the Noida Authority canceled the allotment due to “non-commencement of project work” and development delays. It contested this cancellation through a revision petition under Section 41(3) of the UP Urban Planning and Development Act, 1973, and Section 12 of the UP Industrial Area Development Act, 1976.
GPL Infrabuild requested the restoration of the allotment without penalties and asked that the period since the lease deed was signed be considered as a “zero period”—a time excluded from project timelines due to circumstances beyond the allotee’s control.
The Authority indicated it lacked a suitable alternative plot when the company expressed readiness to accept the same plot free of encumbrances or an equivalent plot.
In September, the Authority confirmed that the tower and power cables had been relocated from the plot and issued a letter on September 8 stating that the plot was ready for handover.
Additional Chief Secretary Alok Kumar noted the Authority’s failure to provide encumbrance-free land for over eight years. On September 16, the Chief Secretary mandated that the time from March 30, 2017 (execution of the lease deed) to September 8, 2025 (handover of possession) be classified as a zero period. He ordered the cancellation order from December 10, 2022, to be revoked, restoring the plot to the company without any fees or penalties.
