The Uttar Pradesh government has directed the Yamuna Expressway Industrial Development Authority (YEIDA) to grant a 14-year zero period to Sunworld City Pvt Ltd for its township project in Sector 22D, Noida. The relief applies to a 20-acre portion of a 103-acre land parcel that was allotted to the developer in 2011 but remained unacquired at the time.
The state’s industrial development department issued the directive following a revision petition filed by the developer. The department asked YEIDA to waive penal interest, extension charges, and other dues for the period between 2011 and 2025 on the 20 acres that had not been acquired when the allotment was made.
In its communication to YEIDA, the department also observed that the Authority had declared full possession of the land in the 2011 scheme brochure, despite not having ownership or acquisition of the 20-acre portion. The directive noted that the developer had not received physical possession of the entire land, which made it ineligible to proceed with project development during that time.
The Sunworld City project was allotted by YEIDA in 2011 under a township scheme. A lease deed was executed in 2012 for 65 acres. The remaining 38 acres were not handed over due to legal disputes and stay orders. Of the 65 acres, around 20 acres were later identified as gram sabha land, which YEIDA had not acquired before leasing.
The land parcels given to the developer were scattered and not contiguous, which impacted the feasibility of township planning and construction. As a result, project development did not begin, and many allottees withdrew and received refunds. Some refund requests are still pending resolution.
The concept of zero period refers to a time when the developer is unable to carry out construction due to reasons not attributable to them. In this case, lack of possession and ongoing disputes over land status prevented work from starting. The 14-year period from 2011 to 2025 has now been granted as zero period relief for the affected 20 acres.
The government order has asked YEIDA to revise the dues accordingly and issue a fresh demand letter to the developer within 30 days. Sunworld City has also applied under the state’s Rehabilitation Policy for Stalled Projects, notified in December 2023. The policy allows developers to regularize outstanding dues by paying 25% and availing relaxed norms to restart construction.
YEIDA had earlier calculated the developer’s total dues at approximately ₹660 crore. The developer paid 25% of this amount before the February 29, 2024 deadline. Later, the outstanding amount was revised to ₹103 crore, with the due date extended to December 31, 2024.
The project, delayed for over a decade, may now see movement if approvals are granted under the rehabilitation framework. The zero period relief and policy application could provide a way forward for the developer to begin construction.
Image source- etvbharat.com
