Last Updated:December 06, 2024, 20:34 IST

The Noida Authority’s Chief Executive Officer, Lokesh M, explained that despite sending several notices to Docile Buildtech to clear its dues, there was no response.

Builder failed to pay Rs 130 crore dues for a 2011 allotment. (Representative
Image)

In a significant setback for the real estate sector in Noida, Docile Buildtech Private Limited faced the cancellation of its land allotment due to a failure to pay an outstanding amount of Rs 130 crore. The Noida Authority took this drastic step after the company defaulted on its payment obligations for land allotted in 2011, which had been left dormant for the last six years.

The land in question, measuring 14,000 square metres, was initially allocated to Docile Buildtech but saw no construction activity over an extended period. Despite repeated reminders and notices from the Noida Authority, the company failed to make the necessary payments. After exhausting all avenues to resolve the matter, the authority took the decision to seal the land and annul the allotment.

Docile Buildtech, through its subsidiary Logics Developers, had originally been allotted a larger plot of land measuring 1 lakh square metres in Sector 143 of Noida in 2011. A portion of this land was later transferred to Docile Buildtech in 2018. However, despite the company’s formal commitment, no development took place, and the payment remained unsettled, with the company failing to respond to the authorities’ multiple communications.

The Noida Authority’s Chief Executive Officer, Lokesh M, explained that despite sending several notices to Docile Buildtech to clear its dues, there was no response. “We had issued a final 15-day notice to the company on October 22, but there was no acknowledgment or payment. Consequently, the allotment of 13,926 square metres of land has been cancelled, and the registration stands revoked,” he stated.

Insolvency Process and Legal Action

Authorities have also taken legal action against Docile Buildtech, filing a case with the National Company Law Tribunal (NCLT) in an attempt to recover the owed amount. However, the insolvency proceedings for Docile Buildtech have not yet begun, while a similar insolvency process is already underway for its subsidiary, Logix Developers.

The land, which was originally valued at Rs 32 crore when it was allotted at a rate of Rs 23,550 per square metre, now has an estimated market value of Rs 450 crore. Although Docile Buildtech made an initial payment of Rs 3.2 crore at the time of registration, no further payments were made, and the total dues, including interest, have ballooned to Rs 130 crore.

In a move to recover the outstanding amount, the Noida Authority intends to reassign the plot to another developer. This action aims to ensure the land is developed and the financial loss to the authority is minimised.