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

Part-2: Sports City Scam www.infralive.com 29 InfraLIVE November 15, 2022 have any stake in majority (13) of sub-plots measuring 342,272 sqm (84.55 acre) in sector 78/79. Sub-Divisions of Plot In October 2011, Noida Author- ity approved the request of the lead member of the consortium to sub- divide the sport city plot into six parts. Of which 5 parts (allotted to four relevant members and the SPC) were done in the Plot SC-01 of Sector-79 and one part was allotted to another relevant member of the consortium in Plot No. SC-01 of Sector-78. The Authority approved the execution of sub-lease of sub- divided plot of SC-01/A in Sector- 79 measuring 100,000 sqm in favour of Sequel Buildcon Pvt Ltd, SC-01/B measuring 48,000 sqm in favour of Sequel Building Concepts Pvt Ltd, SC-01/C measuring 250,027.50 sqm in favour of SPC- Three C Green Developers Pvt Ltd, SC-01/D measuring 100,000 sqm in favour of Kindle Developers Pvt Ltd and SC-01/E measur ing 80,000 sqm in favour of Xanadu Realcon Pvt Ltd. The Authority also approved the execution of sub- lease of the Plot of SC-01 in sector 78 measuring 14,272.50 sqm in favour of Xanadu Infratech Pvt Ltd. Accordingly, six leases were exe- cuted on October 24, 2011 with the aforesaid sub-allottees. It was fur- ther observed that five out of six sub-allottees again sub-divided their plots into 22 sub-plots and sold/ transferred the ownerships of the sub-plots to third parties. Out of 23 sub-allottees, except a few sub-allottees, the ownership of other sub-allottees have already been sold/ transferred to third parties (see table-3 at pg 30-31). It is therefore evident that three members of the consortium - the Lead Member XEPL, MIPL and SAPPL were not allotted a single sub-plot. However, the lead mem- ber had a major stake in the SPC. The other two members MIPL & SAPPL were also members of the SPC but exited the SPC within two years, without getting any projects, either Sports infra or residential, completed. The Authority allowed the sub- division of the plots among SPC and five relevant members of the consortium arbitrarily without any relevance to the size of the plot, net- wo r t h , t u r no v e r and wo r k - experience of the sub-allottees etc. It was therefore no wonder that none of the sports infrastructure envisaged in the scheme have been completed even after a decade and many sub-allottees have not even completed their residential /com- mercial projects. Role of Members of Consor- tium Xanadu Es t a t e s Pv t L t d (XEPL) , the lead member of the consortium, was incorporated on March 10, 2011. Its authorized share capital is Rs 400,000 and its paid-up capital is Rs 200,000. XEPL, though the lead member, was not allotted any sub-plot directly. However, it had control- ling share ranging from 62.5 pc to 90 pc stake (presently 75 pc) in the SPC which was allotted significant sub-plot of 312,000 sqm in the Sport City SC-01 in Sector 78 & 79. It was therefore their prime responsibility to ensure completion of sports infrastructure, in which they failedmiserably. Being the lead member, XEPL was required to maintain 30 per cent share in the consortium until the completion of the project. How- ever, XEPL was not given any role or responsibility in more than 55 per cent of the plots which were allotted to five other members of consortium. Further, XEPL's role further got limited due to sub- division of the sub-plot SC-01/C of SPC and allotment to seven sub- allottees. Thus, the SPC - TCGDPL, in which XEPL has 75 per cent share, was left with the ownership of 166,459 sqm plot in Sector 78 and 50,000 sqm in sector 101. Thus, the Lead member XEPL has been left with the stakes in less than one-third of the plot only. XEPL has however become in effect defunct as its Annual General Meeting (AGM) was last held on did not have any resources to pool for taking the large plot as a consor- tium thereby negating the very purpose of constituting the consor- tium. The eligibility was considered based on the credentials of Three C Universal Developers Pvt Ltd (TCUDPL), holding company of one of the members of the Consor- tium ie Xanadu Estate Pvt Ltd. Even TCUDPL was an inexperi- enced company with less than 5 years of experience in real estate construction and development activities. Terms & Conditions of the Brochure flouted with impu- nity Further, MoA of the consortium didn't specify the role and responsi- bilities of each member as required in the Scheme brochure. In utter disregard of the terms and condi- tions of the Brochure of the Scheme, an existing company Three C Green Developers Pvt Ltd (TCGDPL) was approved as Special Purpose Company (SPC) even though it was incorporated on December 30, 2010. Further, only four members of the Consortium(XanaduEstate Pvt L t d - 6 2 . 5 p c , X a n a d u Infradevelopers Pvt Ltd - 9.5 pc, Meriton Infratech Pvt Ltd 18.5 pc and Sutlej Agro Products Pvt Ltd - 9.5 pc) had the shareholding in the SPC in October 2011 out of total nine members in the consortium. The entire share of Sutlej Agro was changed within six months and taken over by Three C Universal Developer Pvt Ltd, which was not a member of the consortium. Within a short period, the other member Meriton Infratech also quit the SPC. As a result, only two members (XEPL 75 pc and XIPL 25 pc) of the consortium have shares in the SPC presently. Thus, the constitution of SPC of the consortium had contra- vened several mandatory terms and conditions of the brochure apparently with the tacit conniv- ance and approval of the senior officials of the Noida Authority. Further, the Lead Member didn't