Ashok Vardhan bought a house in Sector 79, Noida way back in 2013. While he moved into the property last year during the height of the pandemic, he - as well as around 5,000 buyers in the area - is unable to get their units registered due to the main developer not having completed sports facilities mandated under Noida’s sports cities scheme that had granted realtors land at concessional rate in lieu of sports infrastructure that they had promised to construct.
“I have paid the entire amount to the developer for my unit that costs over a crore. I feel cheated as I am unable to get my house registered. We have been made to execute an agreement to sublease instead of a sublease deed which is the actual ownership document that allows us to buy and sell our unit if the need arises,” he claims.
The Authority may have set up a committee to examine the issue but there is no fixed timeline by when the solution would be found, he says.
“As many as 5,000 buyers in Sector 79 are in a fix and perhaps the same number in Sector 150, Noida,” he says.
A 2008 Master Plan
Way back in 2008, the Noida Authority Board had approved the master plan for sports cities that were aimed at providing the best sporting infrastructure along with housing. Following the launch of the sports cities scheme in 2011, the authority had sold plots to private developers who had promised to develop sports facilities and other infrastructure. Under the scheme 70 percent of the area had to be reserved for recreational and sports facilities. Commercial infrastructure was to be allowed on 10 percent area and 20 percent area was to be utilized for developing residential plots or group housing projects.
The idea was to perpetuate the spirit of sports in Gautam Budh Nagar after the success of the Formula One races. Two plots were allotted in 78 and 79 and in Sector 150, one in Sector 101 and one in Sector 152 under the scheme. These were to have a 9-hole golf course, cricket, swimming and tennis academy. The plot sizes varied from 150 acres to 200 acres.
However, over the years, these builders decided to sub lease the sports cities plots to other private developers and even got approval for amended plans. This led to several group housing facilities mushrooming in these land parcels where sports facilities were expected to come up as per sports cities plans. These sports facilities were to have come up within a period of seven years.
In January, the Noida Authority decided to form a committee to suggest the way forward for the sports cities planned across sectors 78, 79, 101, 150 and 152 and halted the process of buying and selling of plots in the area. It had said that no occupation certificates would be issued to developers until the sports facilities are developed in these areas.
Clarification From Authority
The committee is now expected to study each project under the sports city scheme and submit its report by the next board meeting. The Authority has also decided that it would not grant any more land for group housing under the scheme. The sale of plots has also been banned to ensure that no third party rights are created further.The Noida Authority has also decided not to issue sub lease deed permission if the sports facilities have not come up in the area. It has also decided that no occupation certificates will be processed until these requirements are met.
It also clarified that in cases where developers have developed the sports facilities, it may permit execution of sub lease deeds to homebuyers as per rules.
It is important to note here that in 2017, the Comptroller and Auditor General had audited all allotments, including sports schemes following allegations of irregularities in the allocation of land in these areas.
Builders also say that while residents are living in some gated societies in these sectors, no completion certificates are being issued as the main developer has not completed the sports infrastructure and acquisition issues still persist in some areas.
“However, once the issue is resolved, the process of registration can begin but right now it is important for all stakeholders to be on the same page,” said Amit Modi, president elect, Credai Western UP.
Sources in Noida’s stamps and registration department told Moneycontrol that the exchequer may have lost as much as Rs 40-50 crore in revenue due to the issue.
A builders’ body has also proposed to the Noida Authority that a consortium of developers could get together to develop the sports facilities to ensure that registries of completed units begin soon.
“Members of Credai have proposed that a consortium be set up to complete the unfinished sports infrastructure but the authority is yet to take a decision on the matter,” Manoj Gaur, CMD, Gaurs Group and chairman of Affordable Housing Committee, Credai (National) told Moneycontrol.
“We may consider all proposals dealing with the completion of these projects,” sources in the Authority said, adding as far as issuing occupancy certificates is concerned, “we will be expediting them as and when these projects are completed along with the sports infrastructure.”