UP Government Cancels M3M's Noida Land Deals (Image Source: iStockphoto)The Uttar Pradesh government has revoked the allotment of two land parcels in Noida to M3M Group subsidiaries, Lavish Buildmart and Skyline Propcon, citing concerns over the non-competitive nature of the bidding process.
M3M had previously acquired the land in Noida 's Sector 72 and Sector 94, investing over Rs 1,000 crore for the parcels.
Furthermore, it raises uncertainties for homebuyers, as both projects associated with the revoked allotments were already launched, with portions of them already sold.
The report added that the M3M The Cullinan project in Sector 94, spanning 13 acres, was earmarked for a Rs 4,000 crore investment, inclusive of land expenses.
Despite having obtained regulatory approvals, including registration from the Real Estate Regulatory Authority (RERA), the cancellation of land allotments by the Uttar Pradesh government underscores the complex and contentious landscape surrounding real estate development in the region.
UP Government Cancels M3M's Noida Land Deals (Image Source: iStockphoto)
The Uttar Pradesh government has revoked the allotment of two land parcels in Noida to M3M Group subsidiaries, Lavish Buildmart and Skyline Propcon, citing concerns over the non-competitive nature of the bidding process. M3M had previously acquired the land in Noida 's Sector 72 and Sector 94, investing over Rs 1,000 crore for the parcels.
This decision deals a significant blow to M3M, particularly amidst ongoing Enforcement Directorate investigations. Furthermore, it raises uncertainties for homebuyers, as both projects associated with the revoked allotments were already launched, with portions of them already sold.
Anil Kumar Sagar, Principal Secretary of the infrastructure and industrial development department in Uttar Pradesh, highlighted that the land parcels were awarded based on a solitary bid, which marginally exceeded the reserved price by just Rs 5 lakh. According to The Economic Times report, this lack of substantial competition led to the allotment of both parcels to a single company at what authorities deemed a non-competitive rate.
M3M had previously disclosed plans for significant investments in these projects. For instance, in Sector 72, they announced a Rs 700 crore investment for the development of luxury retail and penthouses, with a substantial portion allocated towards land acquisition and construction costs. The report added that the M3M The Cullinan project in Sector 94, spanning 13 acres, was earmarked for a Rs 4,000 crore investment, inclusive of land expenses.
Despite having obtained regulatory approvals, including registration from the Real Estate Regulatory Authority (RERA), the cancellation of land allotments by the Uttar Pradesh government underscores the complex and contentious landscape surrounding real estate development in the region.
