NOIDA: The Uttar Pradesh government has instructed the Yamuna Expressway Industrial Development Authority (YEIDA) to provide a 14-year ‘zero period’ waiver for Sunworld City’s stalled township project in Sector 22D. This decision follows revelations that approximately 20 acres allocated for the development were never acquired when YEIDA transferred the land to the developer in 2011.
The state’s industrial development department, which reviewed a petition from Sunworld City Pvt Ltd, directed YEIDA to waive not just the penal interest but also the extension charges and related dues for the 20 acres from 2011 to the present. The order criticized YEIDA for not ensuring complete possession of the land, which it had advertised as ‘acquired’ in its promotional materials.
The situation dates back to 2011 when YEIDA set aside 103 acres for this township project. Although the Authority claimed full possession, lease agreements were only signed for 65 acres in 2012, with the remaining 38 acres entangled in legal disputes. Complications arose when it was discovered that nearly 20 acres of the land were gram sabha property, which YEIDA did not formally acquire until December 2017.
The developer faced additional challenges as the land parcels allocated by YEIDA were non-contiguous, hindering the possibility of developing a unified township. Many homebuyers withdrew from the project due to the delays and obtained refunds, although some cases are still unresolved in various forums.
Under the government’s recent directive, YEIDA is required to recalculate Sunworld’s outstanding dues factoring in the zero-period benefit and issue a new demand notice within a month. Sunworld City has also applied for the state government’s rehabilitation package for stalled projects and has paid 25% of the previously assessed dues under a special policy introduced in December 2023.
The timeline of the case exposes significant administrative oversights. After winning the bid in 2011, Sunworld Infrastructure Ltd established Sunworld City Pvt Ltd to carry out the township project. While YEIDA executed a lease deed for 65 acres in September 2012 and issued a possession certificate, layout approval for the project was only granted in March 2014.
After the introduction of the rehabilitation package, YEIDA initially calculated Sunworld’s total dues at approximately Rs 660 crore, which would require the developer to pay 25% (around Rs 165 crore) by February 29, 2024. Following a review request from the developer, YEIDA revised the total demand to Rs 103 crore, with a deadline of December 31 of the previous year.
The developer’s petition to the government highlighted its inability to continue construction due to the fragmented, un-demarcated land and opposition from local farmers.
“The company sought zero-period benefits from the date of allotment until complete physical possession was achieved, along with waiving all related charges and penalties,” an official stated.
