NOIDA: In response to notices from the Noida Authority, several builders engaged in the Noida Sports City projects have begun settling their outstanding dues. A notable action includes a consortium partner of the Sector 150 Sports City project, led by Lotus Green Constructions, which has made a payment of Rs 80 crore.
Officials indicated that other consortium partners in this project have also shown readiness to make payments and are expected to do so shortly. Back in March, the Authority issued notices mandating developers to clear longstanding dues within one month, as per a high court directive from February.
Outstanding dues consist of pending premiums, interest on premiums, penalty interest, lease rent, fees for time extensions, and a 64.7% additional compensation amount. A total of 62 notices were sent to various developers involved in four Sports City projects across the area, which collectively owe Rs 11,000 crore to the Authority.
Initially awarded to four lead developers, these projects later saw the plots subdivided and sub-leased to consortium partners. The Allahabad High Court, in a ruling on February 24, instructed the Authority to notify all stakeholders to demand payment of overdue amounts, including interest and penalties, warning that non-compliance would lead to automatic allotment cancellations.
The high court alleged a “dirty nexus” between real estate developers and Noida Authority officials, calling for investigations by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) into three of the four Sports City projects due to significant financial and planning inconsistencies.
A bench made up of Justices Mahesh Chandra Tripathi and Prashant Kumar issued 10 rulings detailing transgressions of land use regulations, public land misappropriation, financial mismanagement, and systematic failures in delivering promised sports infrastructure.
Many developers have challenged the High Court’s verdict in the Supreme Court. Although the apex court did not stay the investigations, it did stop the agencies from taking any coercive measures against the builders for the time being. A follow-up hearing is set for the first week of August.
To ensure compliance, the Authority has formed a committee led by an additional CEO to pursue recoveries, uphold court-mandated timelines, and monitor the development of the sports facilities. The court’s scrutiny is particularly focused on Sports City projects in Sectors 78, 79, and 101 (developed by Xanadu Estate), and two major projects in Sector 150 (Logix Infra Developers and Lotus Greens Constructions). The fourth project is led by ATS Homes in Sector 152.
It has been found that developers prioritized residential and commercial projects over the required sports facilities, which were intended to occupy 70% of the designated land. The Xanadu and Logix projects are currently undergoing insolvency proceedings, which the court has criticized as strategic attempts to evade their responsibilities.
First conceptualized in 2004 and launched between 2010 and 2016, the Sports City projects were planned over 798 acres in Noida, promising world-class sports facilities, including three golf courses and an international cricket stadium. However, developers shifted focus to residential and commercial construction, failing to deliver the promised sports infrastructure.
