Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Noida Authority has cancelled the allotment of 13,961 square meters of land in Sector 143 to Docile Buildtech Pvt Ltd, a subsidiary of Logix Group, for non-payment of INR 130 crore in dues. Despite an initial payment of INR 3.2 crore, the company failed to settle the remaining amount, which accrued significant penal interest. The land, valued at INR 450 crore today, remained unused for six years. Noida Authority plans to re-allot the plot to recover dues and has filed a case with the NCLT and a complaint with the EOW against Logix Group. This action underscores the need for stricter compliance and accountability in real estate.
Noida Authority recently cancelled the allotment of nearly 14,000 square meters of land to Docile Buildtech Pvt Ltd, a subsidiary of the Logix Group, due to non-payment of dues amounting to INR 130 crore. The plot, located in Sector 143, had remained untouched for the past six years since its initial allotment. The Authority sealed the plot after the company failed to respond to numerous notices. Advertisement
Logix Developers were initially allotted 100,000 square meters in Sector 143 in 2011 for a group housing project. A portion of this land was subdivided and registered in favour of Docile Buildtech in October 2018. Following the failure to respond to a final 15-day notice earlier this week, the Authority cancelled the allotment of 13,961 square meters and terminated the registry.
The plot in Sector 143 was initially allotted at a rate of INR 23,550 per square meter, totalling INR 32 crore. The company made an initial payment of INR 3.2 crore but failed to pay the remaining dues, which, over time, accumulated to INR 130 crore, including penal interest. Presently, the market value of the land is estimated to be INR 450 crore. The Authority now intends to re-allot the plot to a new developer in order to recover the outstanding dues.
Officials also told reporters at ET Realty that a case has been filed against Docile Buildtech in the National Company Law Tribunal (NCLT), although insolvency proceedings have yet to commence. Logix Developers themselves are undergoing insolvency proceedings in the tribunal. Noida Authority has also filed a complaint with the Economic Offences Wing (EOW) of Delhi Police against the promoters of Logix City Developers for unpaid dues and missed delivery timelines concerning the Blossom Zest housing project in Sector 143.
The cancellation of the allotment to Docile Buildtech by the Noida Authority underscores the pressing need for stricter regulatory compliance and accountability in the real estate sector. The fallout serves as a cautionary tale for developers and authorities alike and highlights the importance of financial diligence in urban development projects. It also reinforces the critical role of enforcement mechanisms in safeguarding public and investor interests.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
