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Irregularities in Greater Noida land allotments led to ₹3,600-cr loss: CAG
The Comptroller and Auditor General (CAG) has found large-scale irregularities in the Greater Noida Authority's allotment of industrial plots and land earmarked for the Sports City project, leading to estimated losses of over ₹3,600 crore. The audit said eligibility criteria prioritised real estate experience over sports infrastructure expertise, and bidders were not required to submit detailed project reports (HT Archive)
According to the CAG report tabled on Wednesday, the authority suffered a ₹800-crore loss in industrial allotments and around ₹2,800 crore in the allotment of group housing land under the Sports City and Recreational Entertainment Park (REP) schemes.
Between January 1991 and March 2021, the authority allotted 2,580 industrial plots covering 1,130 hectares — roughly one-fifth of all its distributed land. But by April 2021, only 1,341 plots (52%) were functional, and most of them became operational years late. Just 147 units — about 11% — met the deadlines specified in their allotment terms.
Of the allottees, 972 defaulted on payments, leaving ₹630 crore unpaid in land premium, lease rent, and interest. A major chunk of this — ₹374 crore — related to plots allotted between 2005-06 and 2020-21. Instead of cancelling long-defunct allotments, the authority allowed defaulters to retain land, in some cases even profiting through transfers.
One example cited was the allotment of 193 plots in Sector Ecotech-XI between 2007-08 and 2016-17 before the sector had basic infrastructure. The land was under litigation over acquisition and farmer compensation, delaying roads and power supply. Lease deeds for 139 plots were never executed, but rather than scrap the allotments, the authority waived penalties and extended deadlines — costing ₹142 crore in potential revenue as deeds were later signed at outdated rates.
The CAG also flagged delays of 223 to 1,804 days in issuing lease deed checklists in 10 cases, causing another ₹4-crore loss in rent. Charges worth ₹15 crore for changes in shareholding went uncollected in seven cases since 2015-16. Until 2018, the absence of strict eligibility criteria encouraged speculative trading, with five of 41 sampled allotments transferred via shareholding changes before any industrial work began.
Sports City: promised stadiums, delivered apartments
The Sports City scheme, launched in February 2011 as an integrated township with golf courses, cricket academies, stadiums, and other international-standard sports facilities, was meant to place Greater Noida on the global sports map.
Between 2011 and 2014, the authority allotted four massive plots: Sports City-1 in Sector Techzone IV to MMR Construction, Sports City-2 in Sector 27 to Supertech, REP-1 in Sector 27 to RBA Buildtech, and REP-2 in Sector 27 to Ultra Home Construction — together covering 535 acres. Rules required 70–75% of the land for sports and recreation, with tight limits on commercial and residential use.
By April 2021, 19 of 20 sub-allottees had defaulted on payments, leaving ₹2,330 crore unpaid. By March 2022, not one project was complete. Instead of world-class stadiums, the land now houses premium residential complexes with token facilities like small pools and tennis courts — little different from those in ordinary gated communities.
The audit said eligibility criteria prioritised real estate experience over sports infrastructure expertise, and bidders were not required to submit detailed project reports. Consortium bidding rules and subdivision approvals enabled otherwise ineligible firms to secure land, with lead members often exiting soon after allotment.
By approving layouts that broke up land meant for large sports facilities, the authority made proper infrastructure impossible. It also granted extra Floor Area Ratio and ground coverage for housing, giving undue benefits worth ₹470 crore, and underpriced land, causing another ₹690 crore in losses.
Vinod Kumar, general manager (finance) of the Greater Noida Authority, said corrective steps had been taken in light of the audit. 'The CAG observed irregularities in old group housing allotments and suggested corrections. We have revised our allotment policy to prevent future errors, and our staff is taking effective measures to recover dues in line with CAG suggestions,' he said.
