Noida Authority Cancels Land Allotment to Logix Group’s Subsidiary Over Non-Payment of Dues

The Noida Authority canceled the land allotment to Docile Buildtech Pvt Ltd, a subsidiary of the Logix Group, due to unpaid dues amounting to Rs 130 crore. The plot, located in Sector 143, was originally allocated in 2011 as part of a group housing project. However, despite several notices, the land remained undeveloped for six years, which led to the cancellation.

The plot in question covers 1 lakh square meters and was allotted at a rate of Rs 23,550 per square meter, totaling Rs 32 crore. Docile Buildtech made an initial payment of Rs 3.2 crore during registration in 2018, but failed to clear the remaining amount. Over the years, the outstanding dues grew to Rs 130 crore, which included penalties. The company did not respond to repeated notices, including a final warning issued by the Noida Authority in October 2024.

After the non-payment, the Noida Authority proceeded with canceling the allotment and revoked the registration of the 13,961 square meter plot. The authority now plans to reallocate the land to another developer in order to recover the pending amount. The current market value of the plot is estimated at Rs 450 crore, which provides an opportunity for the Noida Authority to generate revenue and encourage further development in the area.

This cancellation has also triggered legal action. The Noida Authority has filed a case against Docile Buildtech with the National Company Law Tribunal (NCLT), although insolvency proceedings have not yet commenced. Logix Developers, the parent company of Docile Buildtech, is already under insolvency proceedings, which adds complexity to the situation for the group.

This land allotment cancellation follows another action taken by the Noida Authority. Last month, the authority filed a complaint with the Delhi Police’s Economic Offences Wing against the promoters of Logix City Developers. This complaint pertains to unpaid dues and delays concerning the Blossom Zest housing project in Sector 143. The promoters are accused of mismanaging funds collected from homebuyers and failing to meet their obligations to the Noida Authority.

The decision to cancel the allotment underscores the importance of adhering to payment schedules and ensuring accountability in real estate projects. Non-payment and delays create disruptions, which not only affect the development but also create challenges for authorities, homebuyers, and investors. It highlights the critical need for developers to maintain financial discipline and complete projects on time.

With the reallocation of the land, there is now an opportunity to bring in a developer who can utilize the property effectively. Sector 143 remains a promising location for real estate projects, and the new development could help restore confidence in the market. The Noida Authority’s actions aim to ensure compliance with agreements and protect public resources while addressing the longstanding payment issues.

For developers, this situation serves as a reminder of the importance of fulfilling financial obligations and meeting project deadlines. Failure to do so not only affects the progress of individual projects but can also undermine overall market trust. The authority’s efforts to resolve these issues and enforce compliance are expected to influence future decisions and foster improved practices in the sector.