The Noida Authority has issued a show-cause notice to Three-C Green Developers for violating lease terms and not completing the project 12 years after land allotment. According to the lease terms, the developer had to complete the project within seven years. The notice stated that 15% of sports facilities were to be developed within three years of the date of allotment, while all the sports facilities were to be provided within five years. However, the developer failed on each timeline.
The Noida Authority has issued a show-cause notice to Three-C Green Developers for violating lease terms and not completing the project 12 years after land allotment. According to the lease terms, the developer had to complete the project within seven years. The notice stated that 15% of sports facilities were to be developed within three years of the date of allotment, while all the sports facilities were to be provided within five years. However, the developer failed on each timeline.
The Noida Authority is responsible for the development and maintenance of the city's infrastructure and amenities. It also oversees the allotment and management of land for various purposes, including real estate development.
In the past, the Noida Authority has taken action against several developers for violating lease terms and failing to complete projects on time. One of the most prominent cases was the Amrapali Group, which was accused of diverting funds meant for real estate projects to other ventures. The group was eventually taken over by the government, and its assets were seized to recover dues owed to homebuyers.
Similarly, the Supertech Group was also issued a notice by the Noida Authority for violating building norms in one of its projects. The authority had ordered the demolition of two 40-storey residential towers, which were found to be in violation of the building regulations. The case is still pending in court.
In the case of Three-C Green Developers and the Sports City project, the Noida Authority has taken a similar stance and issued a show-cause notice for violating lease terms. The authority has stated that if the developer fails to provide a satisfactory response, cancellation proceedings will be initiated as per the terms of the lease deed.
Under the Sports City project, 70% of the land was earmarked for developing sports and related activities and the remaining for residential and commercial purposes. However, the developer flouted the rules and did not complete the sports facilities. One of the lease deed terms was that Rs 410 crore would have to be spent on sports activities, but only a negligible amount has been spent so far. The developer also failed to clear the Authority's dues. Therefore, the show-cause notice was issued.
Furthermore, group housing projects were also taken up prior to completing the sports facilities. According to the lease deed, no boundary wall could be constructed on subdivided plots so that residents can use the common sports facilities, but the condition was also violated. As a result, thousands of homebuyers in the project have been unable to register their flats. The incomplete sports facilities have also caused major issues for residents who were promised a lifestyle concept, which would involve developing housing around sports facilities in an integrated space. Instead, the project has turned into a vexing problem in Noida's troubled real estate sector.
The developer's response to the notice is being represented by resolution professional (RP) Gyan Chand Mishra. The RP's counsel Deepak Agarwal pointed out the faulty land acquisition process in the project and ongoing court cases in Allahabad high court filed by Three-C Green and one of the subsidiary companies. It states the sports complex obligations of the developer are only with respect to the land area measuring 53 acres and not for the entire Sports City as the land has been subleased. The RP's response to the notice also mentioned that Three-C Green Developers is in the middle of a corporate insolvency resolution process and lodged its claims in the CIRP in August last year.
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