NOIDA: The Noida Authority has notified ATS Homes, the primary developer for the Sports City project in Sector 152, regarding violations of lease agreements, construction delays, and a failure to provide essential sports infrastructure nearly ten years after the land was allocated.
Officials report that ATS Homes and its consortium partners owe the authority ₹2,746 crore in outstanding dues and have consistently ignored reminders regarding their responsibilities. The 5 lakh sqm land parcel, of which ATS occupies 4 lakh sqm, was granted in July 2015 with a mandate to complete all sports facilities within five years and obtain occupancy certificates for residential and commercial spaces by December 2022.
However, a site inspection conducted on November 4 showed that construction was significantly behind schedule, with work on green areas yet to commence. The project has been segmented into 10 plots; though plans for four had been approved, actual progress remains severely lacking. Many project components are delayed, raising concerns about the developers’ commitment and ability to complete the project.
The Authority’s notice accused ATS and its partners of breaking building regulations, ignoring approved layout plans, and failing to settle their dues despite numerous chances. This action aligns with specific directives from the Allahabad High Court, which has been overseeing the progress of the Sports City project.
Initiated prior to the 2010 Commonwealth Games, the Sports City initiative aimed to develop integrated townships with top-tier sports facilities alongside residential and commercial spaces. Developers including Xanadu Estate, Logix Infra, Lotus Greens Constructions, and ATS Homes received large land allocations throughout Noida. While many of these plots were quickly sub-leased for residential housing, the necessary sports facilities remain largely unconstructed. Data from the Authority indicate a broader issue.
In total, 81 sub-plots were created across all Sports City parcels, and 62 notices have been dispatched for outstanding dues amounting to ₹11,641 crore, with only ₹319 crore collected so far. Logix Infra Developers currently owes ₹4,082 crore, followed by Lotus Greens at ₹4,178 crore, Xanadu Estate at ₹636 crore, and ATS Homes at ₹2,746 crore.
The scheme has faced heightened scrutiny since a 2019 CAG audit highlighted concerns such as land undervaluation, the repurposing of designated sports spaces for housing, and unauthorized sub-leasing. Earlier this year, the Allahabad High Court mandated investigations by the CBI and ED into three Sports City projects (excluding ATS) and instructed the Authority to recover dues from defaulters. “Noida Authority will continue to pursue strict administrative and legal actions against all lessees who fail to comply with lease terms. Recovering outstanding payments and ensuring the timely construction of the long-awaited sports facilities will remain a priority,” an official stated.
In response to the notice, an ATS spokesperson remarked, “On April 3, 2023, the Honourable Allahabad High Court questioned the Noida Authority about proposing actions against us for not developing the Sports City when it has not allocated the complete required land for the project. The court also directed the Authority to reassess dues as per the applicable zero period policy. Importantly, it instructed Noida Authority to permit ATS Homes to advance with the project in accordance with the approved building bylaws and plans. Therefore, although we haven’t received any notice from the Authority about halting our work, any action proposed would be unjust, unlawful, and disrespectful of the Honourable Allahabad High Court’s orders, and we will explore all available legal remedies.”
