Yeida reverses cancellation of Supertech Group and Sunworld project awards

The Yamuna Expressway Industrial Development Authority (Yeida) took a U-turn on Tuesday and said it has decided not to cancel land allotments made to realtors Supertech and Sunworld Groups in Sector 22D in 2011 for construction of group housing projects.

Last week, the Yeida board cancelled the developments after the two realtors failed to pay their land dues. Yeida managing director Arun Vir Singh said the cancellation was revoked after it was realised that the cancellation was approved based on “wrong recommendations from the legal department”.

“We have decided not to cancel the allotment of these two realtors as their cases are pending in the Allahabad High Court. We have also decided to take action against the law department officials who proposed the action against the realtors. The law officials have not informed the board that the cases of these two developers are being heard in the Allahabad High Court,” said Arun Vir Singh, managing director of Yeida.

Yeida said action would be taken against his legal advisor and legal department officials who provided false information about the Supertech and Sunworld lots.

“Although the matter is pending before the Supreme Court, a proposal was moved in the board meeting on the basis of wrong facts to cancel the allotment of Supertech Township and Sunworld Infrastructure. This negligence lies with the legal department. In view of the facts, an inquiry will be initiated and action will be taken against the responsible officials and employees,” Singh said.

At the board meeting on June 26, the authority approved partial cancellation of land allotted to Supertech Township and Sunworld Infrastructure in Sector 22D, excluding areas where residential projects have already been sold to home buyers.

The developers informed the authorities that the High Court had ordered that no coercive action be taken against them. Singh sought the opinion of the authorities’ legal team, which confirmed that the developers’ claims were valid.

According to the legal report submitted to Yeida’s CEO, Supertech has filed two petitions in the Allahabad High Court. The first, filed in 2021, challenged the authority’s dues demand letter issued in March 2021, seeking the benefit of a zero period. This case is still pending.

The second petition, filed in 2022, sought dismissal of his review application pending before the state government, challenging the quantification of additional compensation.

In September 2022, the High Court ordered the review authority to decide on the application within six weeks, postponing recovery until a decision is made. That decision is still pending.

The legal team has recommended that it is not advisable at this time to proceed with the cancellation of the lease or the recovery of contributions.

The CEO noted that there was also a stay order against any enforcement action against Sunworld Infrastructure.

In 2011, Supertech Township and Sunworld Infrastructure were each allocated 100 acres in Sector 22D. Supertech Township is to ₹677 crore to Yeida, while Sunworld owes authority ₹816 crores.

Despite repeated notices, both builders have not accepted the rehabilitation plan proposed by the state government for the pending projects and have not settled their debts.

Acceptance of the state government’s bailout would have provided Supertech with relief ₹128 crore and Sunworld a relief of ₹156 crores.

Currently, both projects are incomplete, affecting about 3,200 home buyers in Supertech Township and about 1,400 home buyers in Sunworld project.

Supertech group spokesperson said, “We have informed Yeida that the Allahabad High Court has limited its power not to take coercive action in this matter.”

Sunworld Group spokesperson said: “Our case is awaiting final decision in the Allahabad High Court.”