The Uttar Pradesh government has directed the Yamuna Expressway Industrial Development Authority (YEIDA) to grant a 14-year “zero-period” waiver. This waiver is for Sunworld City’s stalled township project in Sector 22D. They found that YEIDA allotted the land in 2011 without completing its acquisition. This information was reported by The Economic Times.
The relief follows a revision petition filed by Sunworld City Pvt. Ltd. The petition was filed with the state’s industrial development department. This department criticized YEIDA for its failure to ensure full possession of the land. Full possession should have been ensured before handing it over. The government ordered the waiver of penal interest. It also ordered the extension charges and related dues for nearly 20 acres of unacquired land. These waivers apply from 2011 until now.
In 2011, YEIDA allotted 103 acres to Sunworld Infrastructure Ltd., which later set up Sunworld City Pvt. Ltd. to implement the project. YEIDA claimed to have full possession of the land. However, lease deeds could only be executed for 65 acres in September 2012. The remaining 38 acres were tied up in legal disputes and stay orders.
Nearly 20 acres of the leased land added to the complications. This land turned out to be gram sabha property. YEIDA did not officially acquire it until December 2017. The authority promoted the project as being on fully acquired land. However, they handed over fragmented parcels scattered across multiple locations. This made integrated township development nearly impossible.
Most homebuyers withdrew from the project due to prolonged delays, with many receiving refunds. However, several cases related to the project remain pending before various forums.
YEIDA is required to recalculate the developer’s outstanding dues under the recent state order. They must apply the zero-period benefit. A fresh demand notice must be issued within a month. Sunworld City has applied for the state’s rehabilitation package for stalled projects. They have also paid 25% of their previously assessed dues under a special policy introduced in December 2023.
The project’s timeline reflects a series of administrative lapses. The possession certificate for the 65 acres was issued in 2012. However, layout approval from YEIDA was granted only in March 2014. The project also faced resistance from local farmers and complications due to undemarcated and scattered land.
After the rehabilitation policy was introduced, YEIDA initially calculated Sunworld’s total dues at around ₹660 crore. They required a 25% upfront payment of approximately ₹165 crore by February 29, 2024. Sunworld requested a reassessment. After this, YEIDA revised the demand to ₹103 crore. They set a payment deadline of December 31, 2024.
Officials said the developer had sought zero-period benefits from the date of allotment. These benefits would extend until the receipt of complete physical possession of the land. The developer also requested the waiver of all related penalties and charges.
YEIDA must now revise its demand. It needs to issue a fresh notice. This should account for the zero-period relief granted by the state government.