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Payment delay may cost realty co 100-acre YEIDA township project
Noida: The Yamuna Expressway authority has given Greenbay Infrastructure a deadline of June 30 to deposit Rs 110 crore, an instalment that the developer has defaulted on, failing which it will cancel the allotment of 100 acres of land for a township in Sector 22D.
The land was allotted to Greenbay in Feb 2011. The developer subleased a portion of this to Emerald Properties in Jan 2014 for a group housing project. It later launched Golf Village township, which comprises 691 plots, of which registries for 300 have been completed till now.
Officials of the Yamuna Expressway Industrial Development Authority (YEIDA) said on Wednesday that this ultimatum was given because the developer defaulted on payment after being allowed to avail UP govt's rehabilitation package for stalled projects.
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The policy, announced in 2023, allowed concessions to developers of stalled projects who agreed to pay 25% of recalculated dues upfront, and the remaining in instalments.
For Greenbay, which was allotted the 100-acre land in 2011, dues were recalculated to Rs 441 crore. Of this, the developer paid Rs 110 crore as the 25% amount upfront by April 2024. The rest of its dues were supposed to be paid in batches between Jan 2025 and July 2026, according to the agreement as part of the rehabilitation package.
But Greenbay sought an extension to pay the first instalment of Rs 110 crore – due for Jan 2025 – citing difficulties in securing full possession of land. A spokesperson for the developer told TOI on Wednesday that around 30% of the allotted land was still under cultivation by farmers and the developer was not able to access it.
YEIDA CEO Arun Vir Singh said that based on this argument, a three-month extension was approved by the authority.
Still, Greenbay did not pay the instalment by April 15 this year. On this day, it submitted another request to YEIDA, seeking permission to sublease a 4,330 square metre commercial plot within the planned township and revision of its payment schedule.
"To fulfil these financial transactions, we need immediate permission to proceed with the sublease of the commercial plot. This authorisation is critical for us to take the necessary steps towards fulfilling our payment obligations.
Should we fail to adhere to the agreed timeline for payment, we accept that the sublease may be cancelled without any objection on our part," Greenbay wrote in the April 15 communication.
"We are ready to give an affidavit stating that all proceeds from the sublease would go directly to YEIDA from this sale," the developer's spokesperson said on Wednesday.
YEIDA this month rejected the request, saying that the rehabilitation package allows subleases only in favour of homebuyers, and not for commercial plots.
"If Greenbay Infrastructure fails to deposit Rs 110 crore by June 30, 2025, the allotment of the township project will stand cancelled," the CEO said.
The developer said it was willing to complete the project and hand over possession to buyers. "But the Authority has not resolved our issues. We have requested a waiver of interest on land that we cannot access due to farmer stays, writs (pleas), or farming, but that too has not been considered," the spokesperson added.
