UP allows 14-year zero period waiver for Sunworld City

Time of India

15-07-2025

Noida: UP govt has asked Yamuna Expressway Industrial Development Authority (YEIDA) to grant a 14-year 'zero period' waiver to Sunworld City's stalled township project in Sector 22D.
The relief came after it emerged that about 20 acres allotted for the project weren't even acquired when YEIDA handed the land over to the developer in 2011.
The state government's industrial development department — which heard a revision petition filed by Sunworld City Pvt Ltd — directed YEIDA to waive not only penal interest but also extension charges and related dues for the 20 acres of land for the period from 2011 until now.
The order also criticised YEIDA for failing to ensure complete possession of land that it had advertised as 'acquired' in its scheme brochure.
The case dates back to 2011, when YEIDA set aside 103 acres for the township project. While the Authority claimed it had full possession of the land, lease deeds could only be executed for 65 acres in 2012. The remaining 38 acres were mired in court cases and stay orders. Complicating matters further, nearly 20 acres of the leased land turned out to be gram sabha property, which YEIDA didn't formally acquire till Dec 2017.
by Taboola
by Taboola
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Unacquired land wasn't the developer's only problems. The portion of land allotted by YEIDA was scattered across multiple parcels instead of being contiguous, making it practically impossible to develop a cohesive township. Most homebuyers withdrew from the project for the delay and received refunds as well, though some cases are still pending in various forums.
Under the govt's recent order, YEIDA must recalculate Sunworld's outstanding dues considering the zero-period benefit and issue a fresh demand notice within a month.
Sunworld City has also applied for the state govt's rehabilitation package for stalled projects and paid 25% of the earlier calculated dues under a special policy introduced in Dec 2023.
The case's timeline reveals multiple administrative lapses. After winning the bid in 2011, Sunworld Infrastructure Ltd established Sunworld City Pvt Ltd for implementing the township. While YEIDA executed a lease deed for 65 acres in Sept 2012 and issued a possession certificate, the project's layout approval came only in March 2014.
Following the introduction of the rehabilitation package, YEIDA initially calculated Sunworld's total dues at around Rs 660 crore, which required the developer to pay 25% (around Rs 165 crore) by Feb 29, 2024. After developer's review request, YEIDA revised the demand to Rs 103 crore, payable by Dec 31 last year.
The developer's petition to the govt highlighted its inability to proceed with construction because of scattered, un-demarcated land and resistance from local farmers.
"The company sought zero period benefits from the allotment date till the time of receiving complete physical possession, along with waiver of all related charges and penalties," an official said.