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Allahabad HC orders NOIDA to return ₹62.6 crore to private builder

August 13, 2022 12:49 am | Updated 12:49 am IST - NEW DELHI:

Authority had accepted money without handing over land parcel

A Bench of Justice Ashutosh Srivastava and Pritinker Diwaker ordered NOIDA to return the petitioner’s money within 45 days. | Photo Credit: File Photo

The Allahabad High Court has ordered the New Okhla Industrial Development Authority (NOIDA) to return a sum of ₹62.5 crores to a private builder to whom the authority failed to allot 50,000 sq.m of land as promised against the said money back in 2011-12.

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The petitioner, Logix group of companies, told the court that in 2011 the NOIDA invited tenders for allotment of commercial plots on lease for a period of 90 years. The petitioner submitted its bid under the scheme for allotment of the plot and deposited a sum of ₹10 crore as earnest money, following which his bid, at ₹1,11,250 per sq.m, was accepted as the highest.

The petitioner then submitted the money as per the policy for the land parcel.

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“Even after submitting all records, documents and money, the development authority failed to hand over the possession of the plot to the petitioner and not executed the lease deed in its favour. More than 10 years have lapsed yet the development authority has not carried out its responsibility as a result of which the petitioner has suffered heavy financial loss,” the plea by Logix group read.

A Bench of Justice Ashutosh Srivastava and Pritinker Diwaker ordered NOIDA to return the petitioner’s money within 45 days.

The builder sought the development authority to repay the amount at 14% annual interest since his investment was stuck with the authority for over a decade. The court decided to decide on the matter at a later date.

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