NOIDA
With an ongoing tussle between the developers and the Noida authority over dues in the sport city projects in sectors 78, 79 and 150, around 30,000 homebuyers appear to be having a tough time awaiting possession of ready apartments. Realtors, developing housing complexes in Sports City projects are opposing the Noida authority’s demand notice citing anomalies in calculation of interest rate imposed on the land cost dues, and lease rent among other grounds.
On Sunday, the confederation of the real estate developers association of India (CREDAI) sought the immediate intervention of the Noida authority and the UP government. In letters to the Noida authority’s chief executive officer (CEO) Lokesh M, and Uttar Pradesh chief secretary SP Goyal, they demanded several other changes in decisions to help in expediting the approval, paving way for early possession to thousands of homebuyers.
“It appears that the recalculations by the Noida authority have not been applied accordingly. We request a reassessment of lease premium and lease rent based on the applicable MCLR rate (the minimum lending rate below which a bank is not permitted to lend) from July 1, 2020 onwards. If calculations are rectified, it will bring down dues, and enable realtors to clear the dues,” said CREDAI (western UP chapter) president Dinesh Gupta.
On realtors’ opposition, the Noida authority’s additional CEO Satish Pal said, “If they have issues with the demand notice then they can come to us, and discuss these issues. Also, they have taken up the issues to the Supreme Court, where the matter will be heard ahead. Let the Supreme Court decide this issue, and then we will do as per the law.”
There are at least 62 realtors, who are together developing around 30,000 apartments since 2011 in the Sports City project.
The UP government through its order on June 9, 2020 and the subsequent office order on January 7, 2022 linked the interest rate on lease premium (the lump sum payment to be made to the authority by developer) and lease rent to the marginal cost of funds-based lending rate (MCLR) effective from July 1, 2020.
The development came in the context of the Noida authority issuing notice to all developers in the Sports City projects demanding financial dues following an Allahabad high court order of February, 2025.
Hearing a petition filed by realty firm Gaursons Group in Sector 79 housing project, the Allahabad high court on February 24, 2025 directed the Noida authority to issue permission for the registry for the homebuyers in Gaur Sportswood part of the Sports City, if the realtors pay the cost of the development of the sports facilities in these projects.
“We fail to understand why has not the Noida authority started registry following the Allahabad high court order and giving relief to the home-buyers?” said Sanwarjeet Dasoundi, one of the petitioners.
On July 24, 2025, hearing the matter in response to pleas filed by Allure developers private limited and others raising many demands, the SC order from the bench of justice MM Sundresh and justice Nongmeikapam Kotiswar Singh, said: “We make it clear that the NOIDA shall be at liberty to proceed further. However, any action taken will be subject to the final order which is to be passed. We further make it clear that the possession of the petitioners will not be disturbed in the meantime. The applications are disposed of accordingly.”
“If the Supreme Court has clearly said that the Noida authority is at liberty to proceed further then why it cannot issue registry permission and map approval if it can issue notice to recover the dues,” said Ayush Singh, a buyer.
In 2020, the Noida authority had stopped approvals on the ground that the comptroller auditor general of India (CAG) made some observations pertaining to anomalies in the allotment procedures, allotment rate and other technical grounds.
The CAG said that around ₹30,000 crore financial loss was caused to the government. It also said that the realtors did not develop sports facilities on 70 per cent of the land allotted, and instead developed housing projects initially.
The realtors, in their letter, have said that the Uttar Pradesh government’s public accounts committee has resolved all objections of the CAG, issued directions to revive stalled projects, and the delay is causing distress to the homebuyers.
They (realtors) said that the time extension charges have been levied at the rate prescribed for commercial projects.
“The Sports city is a mixed-land use project with only 0.5% of the land earmarked for commercial purposes, 29.5% is meant for group housing/residential use and the remaining 70% is allocated for recreational purposes, including sports, institutional areas, open spaces, circulation areas, internal roads and parks,” the realtors said.
“In light of this, we request that the time extension charges be recalculated at the rate applicable to group housing/residential projects. Furthermore, considering the disruptions caused by the Covid-1 pandemic from April 1, 2020 and the subsequent ban imposed by Noida authority on January 18, 2021, we request a waiver of time extension charges for this period, as these factors significantly impacted development of the Sports city Project,” they added.