NOIDA: The Noida Authority has decided against allowing Noida Data Centre Ltd — an Adani Enterprises subsidiary — to sub-lease its Sector 80 industrial plot until the project becomes operational. This marks a change from the Authority’s previous position, as officials emphasized they would adhere strictly to the original terms of the allotment.
Officials noted that the plot, allocated to Adani in 2021, remains undeveloped, and the company has not submitted an application for map approval. They referenced Clause 14-B of the lease deed, stating that sub-leasing is permitted only after the unit has received an occupancy certificate and is fully operational.
Initially, in July of the previous year, the Authority had authorized the sub-leasing of 10 acres in Sector 80 to Noida Data Centre Ltd — a special purpose vehicle formed by Adani Enterprises and EdgeConneX under the AdaniConnex venture. This land was assigned for ₹70 crore in April 2021 for the development of a 50MW hyperscale data park within a six-year timeframe.
However, during a March meeting this year, the Authority reversed its decision due to issues concerning transfer charges. When the Authority requested a transfer fee of ₹11 crore, Adani requested a waiver, referencing a prior instance where the Authority allowed sub-leasing of an institutional plot in Sector 62 without such fees.
The company pointed to the Data Centre Policy of 2021, which permits sub-leasing without transfer charges but also grants industrial development authorities the right to impose relevant fees under the UP Industrial Area Development Act, 1976.
On June 9, the Authority rejected the waiver and informed Adani via a letter that the allottee had consented to these stipulations during the application process and must adhere to them.
Chief Secretary Manoj Singh, who is also the Authority chairperson, intervened to clarify that the Sector 62 situation is not comparable to that of Adani, as it involves different categories of land use. He pointed out that Sector 80 adheres to industrial plot regulations, while Sector 62 was allocated under institutional rules.
“Noida Authority’s policies regarding transfer or sub-lease of industrial and institutional plots are fundamentally different,” Singh wrote in his letter to Authority CEO Lokesh M.
In the same correspondence, Singh emphasized that the lease deed for the Sector 80 plot, executed in October 2021, explicitly forbids any transfers until the project is operational.
“The allottee was aware of the provisions… Thus, post-signing the lease deed, the provisions of Para 8.3.i of the Data Centre Policy 2021 cannot be invoked,” he added.
While the IT and electronics department backed Adani’s position — asserting that the Data Centre Policy should take precedence over the lease deed terms — the Authority maintained its position. A committee composed of the finance controller, chief legal adviser, and an additional CEO recommended rejecting Adani’s request for a sub-lease and fee waiver, emphasizing the need for project completion and the requisite occupancy certificate.
“Granting any relaxation would provide a post-allotment benefit, which is not permissible under current regulations,” an official stated.
