Builders like Ponty Chadha's Wave Group, 3C took 80 percent of the land on loan, Noida Authority was duped of a total of 52,000 crores
The nexus between the Noida Authority and the builders has left lakhs of flat buyers in the area near Delhi on the road. Do you know what is the reason for this? Due to the negligence of the Noida Authority and the big dreams of the builders, billions of rupees of the customers of Delhi NCR are stuck in the Noida project.
The Noida Authority officials and builders in connivance ignored the rules in land acquisition, allotment and clearances. The CAG has estimated that the Noida Authority has suffered a total loss of Rs 52,000 crore due to the actions of the officials. According to the report, Noida Authority officials made it a paradise for real estate developers as only 18% of the land was used for industrial development.
In Noida, builders such as Ponty Chadha's Wave Group, 3c and Logix Group have succeeded in getting 80 per cent of the commercial land allotment in their name. Between 2005 and 2018, all the three builders got 80 percent of the commercial land in their name on loan from the Noida Authority. Till March 2020 also, Noida Authority owes Rs 14000 crore on these three builders.
The Controller and Auditor General of India in its report has pointed out that the concerned authorities of the Noida Authority did not discharge their responsibility properly in this matter and failed to take strict action against the builder. Between 2005 and 2018, around 80 per cent of the commercial land was allotted to companies such as Ponty Chadha's Wave Group, 3C and Logix Group. Noida Authority officials also violated the terms and conditions for this.
The CAG report states that the Wave Group was allotted 6.63 lakh square meters of land between 2008 and 2010. In 2010-11, Logix Group was allotted 10.76 lakh square meters of land, while 3C was allotted 21.71 lakh square meters between 2010 and 2014. During this period, Noida Authority allotted 49 lakh square meters of land in the commercial category, out of which 39 lakh square meters of land was given to these three companies. For this land, the three companies had to pay an amount of ₹ 15700 crore, out of which the Noida Authority owes ₹ 15,000 crore to these companies as on 31 March 2020.
Not looking at the project
Interestingly, Wave Group has already moved the National Company Law Tribunal and admitted its failure to complete its project. 3C and Logix Group have leased out most of their land to third parties for development. The Noida Authority had not stipulated any condition regarding the eligibility of a builder to complete a project on time. Apart from this, the authority officials allotted multiple plots to the same realty group, due to which 12 projects out of the 16 allotted plots could not be completed till November 2020. The CAG report said that the Noida Authority also failed to monitor the work on these projects.
Authority audit for the first time
For the first time, the CAG has conducted a performance audit of Noida, adjacent to Delhi. This audit is for the period 2005-06 to 2017-18. In its audit, the CAG found that Noida had committed several irregularities in the planning, acquisition, pricing and allotment of lands. The CAG has exposed the failure of the Noida Board, its management and officials. A similar report of the CAG on Greater Noida will soon be placed in the Vidhan Sabha.
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