Where is the Sports Infra in 'Sports City'

Sports City Scam www.infralive.com 25 Infra LIVE July 15, 2022 Authority in gross violation of the Clause III (20) of the lease deed. Bhutani Group has however been advertising the project, naming the project as Bhutani City Centre 150 aggressively using the same UP RERA registration number (UP- RERA-PRJ-270081) issued to LIPL, claiming ownership of the facilities. Similarly, in December 2019 i.e. after eight and half years of allot- ment of the Plot, Noida Authority also approved the plan of LIPL to develop a project calledMaxAntara Noida Phase-1 on SC-01/B1 with- out keeping in mind the primary objectives of Sports City plot which envisaged that 70 per cent area of the entire plot would be used for developingworld class sports infra- structure. The Planning wing also did not bother to check whether there were any outstanding dues against the allottee/sub-allottee and whether any extension of time- limit had been granted by the GH/ Commercial wings of the Author- ity. Instead of sanctioning new pro- jects in this manner, the Noida Authority should have cancelled the allotment of plot and taken back atleast 70 per cent (157 acres) of the Sports City plot from the allottee/sub-allottees meant for sports infrastructure in terms of provisions of Clause I, II (b), II (O), II (p), II (y) and III (3) of the lease deed. Granting of any further approval plan/ map for residen- tial/commercial projects on this plot should be stopped. Registration of Projects by UP RERA inPerfunctoryManner Section 4 (2) (d) of the Real Estate (Regulation and Develop- ment) Act 2016 enjoins upon the promoter to submit the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the Competent Authority along with their applica- tion for registration of a real estate project toRERA. On December 14, 2020, UP RERA registered commercial pro- ject City Centre-150 (UP-RERA- PRJ-270081) of LIPL based on the conditional sanctioned plan issued by the Planning wing of the Noida Authority on July 3, 2020. The condition was that LIPL would obtain the extension letter from the commercial wing of the Noida Authority within 90 days of issue of the letter, failing which the sanc- tioned planwould stand cancelled. The promoter has not confirmed and uploaded the receipt of exten- sion letter from the commercial wing of the Noida Authority till date. Thus, on expiry of 90 days ie October 1, 2020, the sanctioned plan of the project had lapsed and stood cancelled. It was therefore not clear as to how UP RERA has registered the project Citi Centre 150 based on apparently cancelled/ expired Plan and thereby enabled the Promoters/allottee to launch the project and create third party liabilities. The promoter has also taken the advantage of the RERA Registra- tion of the Project and created bulk third party liabilities, within a few months of registration by UP RERA, by sub-leasing 95 per cent of the commercial space in the pro- ject. It was further observed that UP RERA had registered three residential projects namely Neo World Phase I-III on the same plot SC-01/B, of which, the project Neo World Phase III was later with- drawn by the promoter. UP RERA permitted thewithdrawal. On inspection by a RERA team, it was reported that the Phase II of the project has not even com- menced whereas only 35-40 per cent work in the Phase 1 has been completed until December 14, 2021. It was therefore evident that due to negligence of the officials of UP RERA, a promoter that had not completed its three residential projects in last 7-8 years, causing considerable inconveniences to thousands of homebuyers was given another opportunity/ undue benefit of booking/ selling com- mercial spaces thereby creating third party liabilities due to regis- tration of project on an invalid under Corporate Insolvency Reso- lution Process (CIRP) under Insol- vency and Bankruptcy Code (IBC) 2016. Approval of Plan of Commer- cial project after Nine years of allotment of plot It is an admitted fact that Logix group has not completed any of the sports infrastructure mandated in the brochure/ lease deed and not spent requisite Rs 410 crore on the designated infrastructure and also not paid the regular instalments of the premium/ cost of the plot of the land to the Noida Authority during the period 2012-2020. However, the Planning wing of the Noida Authority, on July 3, 2020 has sanctioned the condi- tional plan at Plot No. SC-01/B of a commercial project called Citi Cen- tre 150 of the promoter Logix Infradevelopers Pvt Ltd (LIPL) with the condition that the pro- moter would obtain the extension letter from the commercial wing of the Noida Authority within 90 days of issue of the letter, failing which the sanctioned plan would stand cancelled (scan-Bat pg 27). InfraLive asked the CEO Noida Authority to clarify the circum- stances under which the condi- tional Plan/ Map for the commer- cial project Citi Centre 150 on the Sport City Plot was issued after a gap of about nine years even when there were outstanding dues of Rs 1,474 crores against the Logix group for the Sport City Plot. How- ever, she chose not to respond. As the validity of the Plan has l aps ed/ exp i r ed and s t ands cancelled, the Noida Authority should have cancelled the allot- ment of the plot forthwith for non- completion of the project. It is further learnt that LIPL has apparently illegally sub-leased about 95 per cent of the project at the said sub-plot to Goodliving Infrastructures Pvt Ltd, an associ- ate company of the Bhutani group onAugust 12, 2021. This agreement has been entered into on a Rs 100 non judicial stamp paper without obtaining approval of the Noida