The Yamuna Expressway Industrial Development Authority (YEIDA) has invalidated the allotment of two plots in Supertech’s Up Country township in Sector 17A of Greater Noida due to non-payment of Rs 86 crore in lease rent and additional compensation to farmers. This decision came after homebuyers lodged complaints that, despite collecting lease rent and additional compensation from them, the realty firm had failed to complete the registration of their homes. Supertech challenged the decision, claiming it was illegal due to the insolvency proceedings initiated against them in March 2022 after defaulting on Rs 431 crore in payments to a consortium of banks.
The Yamuna Expressway Industrial Development Authority (YEIDA) has invalidated the allotment of two plots in Supertech’s Up Country township in Sector 17A of Greater Noida due to non-payment of Rs 86 crore in lease rent and additional compensation to farmers. This decision came after homebuyers lodged complaints that, despite collecting lease rent and additional compensation from them, the realty firm had failed to complete the registration of their homes.
Supertech has challenged the decision, claiming it was illegal due to the insolvency proceedings initiated against them in March 2022 after defaulting on Rs 431 crore in payments to a consortium of banks. Representatives of the builder’s company claim YEIDA is not authorized to invalidate the land allotment as the company is currently under the Insolvency Bankruptcy Code (IBC).
YEIDA had awarded Supertech 13,720 square meters of land for commercial use and an additional 25,000 square meters of land for institutional purposes. The allotment was revoked to provide relief to homebuyers. Officials have stated that YEIDA will auction off the 38,720 square meters of land to recover its outstanding dues, which will allow for the registration of flats.
In 2009, YEIDA granted Supertech 404,686 square meters of land (100 acres) for the Up Country project, and the developer immediately began selling properties in the development. The buyers of these plots were promised possession and registration in 2012. Supertech sold approximately 3,500 to 4,000 units, including flats, villas, and plots, in the project. However, only about 800 of these units have been delivered to homebuyers, and none of them have been registered yet. While about 250 people are currently residing in the development, they are waiting for occupancy and completion certificates.
The Yamuna Expressway Industrial Development Authority (YEIDA) is a government agency responsible for the development of the Yamuna Expressway Industrial Development Zone, which is a 165 km long stretch of land along the Yamuna Expressway, connecting Greater Noida with Agra in the Indian state of Uttar Pradesh. YEIDA was established in 2001. The authority has the power to acquire land, develop it, and then sell it to private entities for further development.
The YEIDA has been successful in attracting several large-scale industrial projects to the region, including automobile manufacturing plants, electronics manufacturing units, and logistics hubs. The authority has also facilitated the development of residential and commercial projects in the area, leading to a significant increase in real estate development.
The insolvency proceedings against Supertech were initiated in 2021 by one of its creditors, the Bank of Baroda, after the company failed to repay a loan of Rs. 53 crore (approximately $7 million USD). The National Company Law Tribunal (NCLT) admitted the insolvency application, appointing an interim resolution professional (IRP) to manage the affairs of the company during the insolvency process. The insolvency proceedings have caused uncertainty and disruption for Supertech's customers, who have invested in various real estate projects developed by the company.
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