The Authority kept on relaxing the terms of allotments of plots on the pretext of severe economic crisis but kept on increasing the size of plots from 50,000 sqm to 13,00,000 sqm
The C&AG has found that in 12 cases the allotted plots had been sub-divided into 32 sub-plots. Of these sub-plots, in only eight cases the value of plot was commensurate to the net worth of the sub-lessee and in 24 cases the value of the sub-divided plot exceeded the net worth of the sub-lessee. In these 24 cases the sub-lessee obtained plots ranging from 1.16 to 14 times of their net worth. In eight of these cases, the net worth of the sub-lessee was less than Rupees one crore and yet they were permitted sub-lease of plots worth Rs 501.62 crore in aggregate. It is thus, evident that NOIDA’s decision to allow sub-division without any regulatory mechanism in place served effectively as a backdoor entry for transfer of valuable property into the hands of ineligible builders.
The payment schedule of plots was not kept in sync with the completion schedule of theproject. The decision of Noida Authority to increase the repayment schedule for the plots to ten years from the date of allotment was also not in sync with the tenure of completion of the projects by the promoters. Thus, the promoters obtained a significant cost (75-80 percent) of the flats including the plot cost from the homebuyers within 2-3 years of launch of the projects while they were…
