Noida Authority Suggests Recovering Unused Unitech Land to Settle Dues

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    The outcome of Unitech’s housing projects in Noida hangs in the balance as the Supreme Court prepares to hear the case in April. The Noida Authority has proposed a solution to either reduce the company’s outstanding dues or allow it to raise funds by relinquishing unused land.

    In response to the Supreme Court’s directive, the Noida Authority has declined to approve revised layout maps for incomplete housing projects initiated by Unitech. Instead, they suggest reclaiming unused project land to offset the company’s debts.

    Unitech, now under new management, had proposed constructing new towers and houses in vacant areas to raise funds for project completion. However, if the Noida Authority’s proposal is implemented, Unitech may face challenges in generating funds.

    With dues amounting to around Rs 10,000 crore, Unitech is one of the largest defaulters. The next Supreme Court hearing is scheduled for mid-April.

    Noida CEO Lokesh M stated, “We have decided to take back unused land parcels from Unitech projects to recover our dues. We are prepared to allocate land proportionate to the number of homebuyers affected.”

    If approved, Noida Authority stands to regain 222 acres of land in sectors 96, 97, and 98, which can then be monetized through re-allotment.

    The Supreme Court had previously directed Noida to process applications for layout plans without insisting on upfront payment of dues. However, the court emphasized that Unitech must pay the necessary fees for processing applications.

    Unitech currently has ongoing projects in sectors 96, 97, 98, and sectors 113 and 117, with thousands of homebuyers awaiting completion.

    Following the court’s directives, Unitech has initiated steps to obtain approval for revised layout plans, but progress has been hindered by unresolved issues regarding third-party rights and land ownership.

    The Supreme Court has urged collaboration between Unitech and Noida Authority to reach a mutually acceptable solution, balancing the need for construction commencement with planning authorities’ concerns.

    YS Malik, chairman of the Unitech board, expressed readiness to start construction pending approvals from Noida Authority and the Supreme Court.

    Also read: Noida Authority to Contest Court Order on Lotus Flats Registration

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