The Yamuna Expressway Industrial Development Authority (YEIDA) is in dispute with ATS Realty and Supertech Township Project Ltd over nearly INR 1,300 crore in unpaid land dues. YEIDA threatens partial land allotment cancellation for ATS and Supertech, who owe INR 668 crore and INR 677 crore respectively. Despite a pandemic relief package offering penal interest waivers, both companies have not settled their dues. YEIDA plans to propose partial cancellation by June 22, affecting undeveloped land, while residents in existing projects could face future uncertainties. Meanwhile, other developers like Greenbay Infrastructure, Omnis Developers, and Logix Buildstate have made partial payments under the relief package.
There is a dispute between the Yamuna Expressway Industrial Development Authority (YEIDA) and two major builders - ATS Realty and Supertech Township Project Ltd - over unpaid land dues totalling nearly INR 1,300 crore. YEIDA is proposing to partially cancel the land allotment for these companies if they don't settle their outstanding dues.
YEIDA had allotted 100 acres each to ATS and Supertech in Sector 22D near the Yamuna Expressway for developing townships. However, both companies have not cleared their dues for the land. ATS owes INR 668 crore, while Supertech's outstanding amount is INR 677 crore.
The Uttar Pradesh government had offered a relief package to developers struggling with stalled projects due to the pandemic. This package included a waiver on penal interest for two years. YEIDA claims that both companies haven't accepted this offer and haven't made any payments towards their revised dues after applying the waiver.
ATS disagrees with the claim, stating that they have already paid a substantial part and want the remaining land (38 acres) and project layout approvals finalized. To settle the dues, they've proposed an upfront payment of INR 93.9 crore with the remaining balance to be paid in installments within 60 days of getting the map approved. On the other hand, Supertech cites an ongoing land dispute and a court ruling to avoid any action from YEIDA. They claim cancelling the land allotment would be illegal, although YEIDA says they owe INR 137.3 crore as the initial payment under the revised dues structure.
YEIDA plans to present a proposal to its board on June 22nd to partially cancel the land allotment for both companies. This cancellation would likely only apply to the undeveloped portion of the land, excluding areas where residential projects are already built (like ATS's Allure township with 1,800 residents and Supertech's Golf Country with 3,200 buyers).
While the immediate impact is on the builders, this dispute could potentially affect homeowners in the existing projects. Delays or complications in resolving the land issue could impact future development plans and amenities within the townships.
It's important to note that not all developers in the YEIDA area are facing similar issues. Three other builders - Greenbay Infrastructure (total dues INR 441.2 crore, paid INR 110 crore advance), Omnis Developers (total dues INR 38.1 crore, paid INR 9.5 crore), and Logix Buildstate (total dues INR 248 crore, paid INR 62 crore) - have already deposited a portion of their revised dues under the government's relief package.
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