YEIDA will sign new lease agreements with third-party developers. These agreements are for 13 Sports City projects in Sectors 25 and 19. This development involves a total of 13,132 buyers, as reported by The Economic Times.
This development follows a March 10 ruling by the Allahabad High Court. The ruling allowed YEIDA to cancel a 1,000-hectare land allotment. This allotment was previously granted to Jaiprakash Associates Ltd. (JAL).
The ruling nullified all references to JAL in existing agreements. It directed the authority to execute fresh lease deeds. This action substitutes YEIDA in JAL’s place. The court upheld the interests of sub-lessees. It instructed that terms remain the same as those between JAL and the sub-lessees. YEIDA has the right to recover outstanding dues.
“Undoubtedly, the terms and conditions should be the same between JAL and the sub-lessees. However, this is subject to the right of YEIDA to recover its dues. YEIDA will take over from JAL after the lease deed is executed. This was stated by the division bench of Justices Manoj Kumar Gupta and Kshitij Shailendra in the ruling.
YEIDA has been directed to issue individual notices to all third-party developers within four weeks. It should complete all lease-related documentation within 12 weeks. Additionally, a new tripartite agreement will be signed between YEIDA, the developers, and the homebuyers to formalize the arrangement.
In total, the 13 projects comprise 9,902 sanctioned flats and 3,230 residential plots. YEIDA CEO Arun Vir Singh said that both developers and homebuyers must upload required documents to the authority’s portal by June 21. This date is the deadline for both parties.
The developments span a mix of high-rise towers and plotted colonies. Among the developers:
- Gaur Sons holds two high-rise parcels in Sector 19. They have 3,104 sanctioned flats. The colony comprises 3,230 plots. Out of these, 2,210 have been sold.
- Solitaire Real Infra is building a tower cluster with 2,250 approved flats.
- Imperia Homes Planners has 629 flats in Sector 25.
- Royal Hometown Planners has a project with 480 flats, 224 of which have been sold.
- Pyramid Townships owns two parcels together comprising 615 flats.
- Additional contributions come from Presidency Infra Heights, MSA Developers, VGA Buildtech, Homes & Soul Infratech, and Imperia Structure. Together, they account for 2,824 units.
The court’s ruling brings closure to a five-year-long legal dispute. YEIDA had initially canceled JAL’s land allotment on Feb. 12, 2020, citing mounting dues. JAL was allotted land in 2008 within a Special Development Zone (SDZ). It had promised to build an international sports, education, and healthcare hub centered on the Buddh International Circuit. JAL launched 12 housing schemes on its own. It also sub-leased portions of the land for 13 additional third-party developer projects.
After the cancellation, JAL challenged YEIDA’s decision in court and obtained a stay order. However, following multiple hearings, the court ruled in YEIDA’s favor, authorizing it to reclaim the land.
The court also assigned YEIDA the responsibility to complete JAL’s 12 partially built housing projects. Timelines vary by stage of construction. It takes one year for those 75% complete. It takes 18 months for those 50% complete. It takes 30 months for those 25% complete. It takes three years for less advanced sites.
To monitor implementation, a dedicated committee has been formed. This committee includes officials from the government and YEIDA. It also has representatives from the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) and home buyer groups.
YEIDA had begun preparations to appoint a new construction partner to finish JAL’s pending projects. A recent interim order from the Supreme Court has restricted the authority. Now, they cannot appoint any new developer without prior permission. The matter is scheduled to be heard again on July 19.