Home Tax News Ensure land you allot is free of disputes, AG tells Noida Authority. Noida News – Times of India

Ensure land you allot is free of disputes, AG tells Noida Authority. Noida News – Times of India

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Ensure land you allot is free of disputes, AG tells Noida Authority.  Noida News – Times of India

NOIDA: The state’s principal accountant general (AG) has asked the Noida Authority to ensure that the plots it allots are free of disputes, citing the additional payout of Rs 295 crore that was made for land on which the DLF Mall of India now stands.
The accountant general sought to know how the land was allotted when it wasn’t properly acquired and asked whether any action had been taken against the officials who were responsible for the error.
“As a matter of prudence, Noida Authority should ensure that plots to be allotted to allottees are free from all encumbrances/encroachment and disputes to enable them to construct and utilize the project in accordance with prescribed terms and conditions. Allotment without ensuring the same gives rise to disputes with the allottee later on, which may result in a delay in construction of projects and non-achievement of the objectives of allotment, besides adversely affecting the financial interest of the Noida Authority,” the account general wrote.
In May 2022, the Supreme Court ordered the Noida Authority to pay compensation to Bengaluru-based realtor Reddy Veerana at the rate of Rs 1.1 lakh per square metre, besides 30% solatium, 15% statutory interest on the amount of compensation and 3% penal interest for two plots of land measuring 7,400 sqm he had brought at Chhalera Bangar in 1997. Veerana’s land, however, was part of a 54,320 sqm land parcel that Noida allotted in 2004 for the Mall of India.
A calculation on the court’s ruling pegged the amount to be paid to Veerana at Rs 359 crore, which was reduced to Rs 295 crore after the Noida Authority held talks with Veerana. To ensure timely implementation of the court order, Noida Authority paid him Rs 295 crore on December 1, 2022.
Subsequently, it sent a demand notice to DLF, asking it to deposit Rs 234 crore, after some adjustments. DLF approached the Supreme Court against the notice and then filed a petition in the Allahabad High Court. The case is still being heard.
“Thus, due to allotment (April 2004) of the plot in Sector 18 which included a land parcel of 7,400 sqm and was not acquired up to the time, Noida Authority had to incur an additional expenditure of Rs 234.57 crore (after adjusting Rs 60.79 crore towards premium and interest thereon from DLF Universal Limited against the said land parcel of 7,400 sqm). The said land parcel could be acquired in January 2006 ie 21 months after its allotment. It is recommended that the Authority should allot the plots only after its acquisition and ensure that it is encumbrance free,” the accountant general wrote.
Noida Authority officials said the land records department would send a report describing the actual position to the accountant general.

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