UP Government Cancels M3M Noida Land Allotment
The Uttar Pradesh government’s recent decision to cancel the allotment of two land parcels in Noida to M3M Group subsidiaries Lavish Buildmart and Skyline Propcon has stirred controversy. The cancellation was due to the companies being allotted the land at a “non-competitive rate,” with M3M having paid over ₹1,000 crore for the parcels in Noida’s Sector 72 and Sector 94. This development comes as a major setback for M3M, which is already under investigation by the Enforcement Directorate, and has left home buyers in a difficult position as both projects were already launched and parts of them sold.
The cancellation was based on the allotment process, which was conducted on the basis of a single bid, where the bidders quoted just ₹5 lakh more than the reserved price. Anil Kumar Sagar, principal secretary of the infrastructure and industrial development department of UP, highlighted in an order issued on Friday that there was a lack of proper competition, and both land parcels were awarded to a single company at a non-competitive rate.
M3M had previously announced plans to invest ₹700 crore in developing luxury retail and penthouses as part of a commercial project in Sector 72, including ₹250 crore for the land cost and ₹450 crore for construction. The company had also launched M3M The Cullinan in Sector 94, with plans to invest ₹4,000 crore in the project, including the land cost. It’s worth noting that M3M had obtained all the necessary approvals for these projects, including registration from the Real Estate Regulatory Authority (RERA).
Overall, the UP government’s decision to cancel the M3M Noida land allotment has significant implications for both the real estate developer and the home buyers involved.
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