Noida Authority Plans to Reclaim 13 Acres from Unitech in Sector 144 Over Unutilized Land

The Noida Authority has taken a decisive step to reclaim 13 acres of land from Unitech, a prominent real estate developer, due to significant delays and non-utilization. This land, located in Sector 144, Noida, was originally allotted in 2011 for residential development. However, despite taking possession in 2015, Unitech has not initiated any construction on this section, leading to escalating dues amounting to Rs 392.8 crore as of April 2024.

The Authority’s decision, made during a recent board meeting, reflects growing concerns over the lack of progress on this prime plot. The land was part of a larger 24-acre area, of which Unitech sub-leased 11 acres to Gulshan Group in 2015. Gulshan Group successfully developed two housing projects, but the remaining 13 acres have remained untouched.

This inaction has not only breached the lease deed, which required completion of the residential projects by July 2022, but it also contributes to the rising financial liabilities for Unitech. Interestingly, this land is not entangled in the ongoing Supreme Court case related to Unitech’s unfinished projects. This distinction has allowed the Noida Authority to consider canceling the allotment without conflicting with the court’s directives.

In 2019, the Supreme Court dissolved Unitech’s management and appointed a government-approved board to oversee the completion of its many stalled projects. While the new management has made progress in other areas, the 13-acre plot in Sector 144 was not addressed in the court’s most recent April 2024 order.

Given the circumstances, the Noida Authority is planning to seek the Supreme Court’s approval before proceeding with the reclamation of this land. This cautious approach ensures that the Authority’s actions remain within the legal framework, particularly given Unitech’s proposal to use its vacant land to generate resources for completing its pending projects.

The potential reclamation of this land could set a significant precedent, signaling the Authority's resolve to hold developers accountable for project delays and unutilized assets. The outcome of this situation is being closely monitored by both the real estate community and prospective homebuyers, as it could influence future development projects and shape the real estate landscape in Noida.