Noida authority cancels plot allotment to Shipra Estates

The Noida authority has cancelled the allotment of 1.26 lakh square metre plot of land in Sector 43 which was auctioned to Shipra Estates due to its failure to pay the first installment of allotment money in the stipulated time. The authority has confiscated Rs. 50 crore and cancelled the allotment. The land was auctioned to the developer for a group housing scheme in August 2016 and had a reserve price of Rs. 77,552 per sq metre, making it worth over Rs. 1,000 crore during allotment time. The builder was supposed to deposit the first installment of Rs. 148 crore in October 2016 but it asked for more time till December 2016. Even after further extension till February 2017, they failed to deposit the money. However on March 15, 2017, they deposited the money without the authority’s consent. Therefore, the authority decided to cancel the allotment and refunded Rs. 148 crore to the developer but confiscated the registration money of Rs. 50 crore. The plot was auctioned on a two-bid system including a technical bid and a financial bid and a financial bid to the highest bidder. Three companies had bid for the plot – Shipra Estates, Saya Group and Vibhor Vaibhav Infrahome Pvt Ltd., among which Shipra Estates was the highest bidder.