Part-2: Where is the Sports Infra in 'Sports City'

Part-2: Sports City Scam www.infralive.com 33 InfraLIVE November 15, 2022 admeasuring 703,002 sqm. Further the Planning wing also approved the plan for the Project Lo tus Yards cape Phase - 1 o f TCGDPL and Lotus Arena of ASPL in their respective plots. It is there- fore evident that the Planning wing of the Authority has apparently colluded with the Allottee (build- ers/ developers) in development of the residential projects in lieu of sports/ recreational facilities by drastically reducing the area of plot meant for sports/ recreational facilities. Further, though the scheme envisaged sports/ recre- ational facilities to be completed on priority ie within five years, the Planning wing kept on approving plans for residential projects with- out approving a single plan for sports/ recreational facilities. TCGDPL was required to spend about Rs 340 crores on develop- ment of sports infrastructure on their plot and ASPLwas required to spend Rs 10 crores on multi- purpose play field in its plot within five years from the date of execu- tion of lease deed. However, there has been no or negligible develop- ment of any sports infrastructure in the plot of Sport City SC-01/78& 79 till date. No monitoring of expenditure onSports Infrastructure The terms and conditions pre- scribed in brochure of the scheme and lease deeds executed by the Noida Authority with the allottees/ lessees provided that the Authority will closely monitor the develop- ment of integrated sport infrastruc- ture in the sports city. However, it was observed that nomonitoring in this respect was done by the Noida Authority and the allottee divided the plots into smaller sub-plots and initially sub-leased to 100 per cent owned subsidiaries, which in turn, in many cases, later on sold/ trans- ferred to third parties. Almost all lessees as well as sub-lessees appeared to be mostly inclined to take up the residential/ commer- cial projects only. The lessee Xanadu Estates Pvt Ltd led consortium divided its entire plot including the areas meant for sports/ recreational facilities into 23 sub-plots. All these sub-divisions were approved by the Noida Authority without ensuring any development of integrated sport infrastructure. It therefore appeared that the prime objective of the lessees/ sub-lessees was to develop the residential/ commer- cial projects rather than develop- ment of sports infrastructure. The Noida Authority did neither moni- tor the development of integrated sport infrastructure nor oversee and stop division and sub-division of the plots and their transfer to third parties. Non-imposition of transfer charges in plot No. SC-01 in sector 78/79 As per terms and conditions of the brochure, transfer charges should have been recovered for any further sub-division as the plot was already sub-divided into five parts but no such charges were recovered and the plots were continuously sub-leased on allotted rates which also resulted in evasion of stamp duty. CAG has observed that in the case of the allottee of the Sports City plot in sector 78/79 this condi- tion was misused by sub-leasing to companies which were subsidiary companies at the time of approval for sub-lease but later on 100 per cent shareholding was changed in these companies and as such they were no more the subsidiaries of the allottee / SPC. This was further facilitated by office order (October 27, 2010) through which Noida Authority removed the requirement of obtaining approval for Change in Shareholding (CIS). The complete change of shareholding amounts to complete change of ownership and as such plots subdivided in favour of the subsidiary should have been treated as transfer. CAG observed that plots were sub-leased to com- panies/ builders in the name of the subsidiary company at the allot- ment rate which in turn sold the land to parties through 100per cent 2014. Therefore, in all probability the company is virtually defunct. Xanadu Real con Pvt Ltd (XRPL) , a relevant Member of the Consortium, was incorporated on March 10, 2011. The company was a sub-allottee of 80,000 sqm of Plot No SC-01/E. The company sold the sub-plot to Gaur Group in Novem- ber 2012 and renamed the com- p a n y X R P L a s G a u r s o n s Sportswood Pvt Ltd (GSPL) in March 2013. Its authorized share capital is Rs 10 crore and its paid- up capital is Rs 42,941,168. The company retained 40,000 sqm (sub-plot SC-01/E1) to launch a residential project namely Gaursons Sportswood and sub- divided the remaining 40,000 sqm plot among two other subsidiaries companies namely Golfgreen Infra Pvt Ltd (20,000 sqm - sub-plot SC- 01/E2) and Golfgreen Superstruc- tures Pvt Ltd (20,000 sqm - sub- plot SC-01/E3). Golfgreen Infra has launched a residential project name l y Mahagun Mi r abe l l a whereas Golfgreen Superstruc- tures has launched a residential project namely Civitech Stadia. The ownership of these companies was transferred/ sold to third parties in 2015-16. GSPL has since received partial completion letter of the residential project Gaursons Sportswood. Flagrant violation of Bro- chure's terms and conditions byPlanningWingof Authority The Brochure for Sport City Scheme envisaged that the allottees would construct integrated sports infrastructure on 70 per cent area (492,101 sqm) of the total plot (703,002 sqm). However, in utter disregard of the terms and condi- tions of the Brochure and lease agreements executed by the Noida Authority with the allottee, Plan- n i ng wi ng o f t he Au t ho r i t y approved the plan for development of the sports infrastructure in 166,459 sqm (Sub-Plot-SC-01/C3) of TCGDPL and 50,000 sqm (Sub- Plot-SC-01/A2) of Arena Super- structures only of the entire plot