GDA revokes Suncity's NH-9 Project Plan

01 Oct 2023

The GDA board has revoked Suncity Hi-tech Infrastructure's plan for an 828-acre residential project off NH-9, citing violations of Memorandum of Understanding (MoU) terms and outstanding dues. This decision has left numerous homebuyers uncertain about their investments.

Initially proposed in 2005 under the state government's hi-tech township policy, the residential project was meant to cover 4,312 acres. However, prolonged farmer protests for additional compensation hindered land acquisition, and the developer could only secure 828 acres over 18 years.

Recently, the GDA board cancelled the Detailed Project Report (DPR) for the 828 acres due to the developer's failure to pay nearly Rs 1.72 billion in land use conversion charges, as highlighted in a previous CAG audit. Additionally, the board discovered that 45% of the 828 acres were government-owned land, violating the agreement that only 25% of such land could be incorporated. Suncity has been instructed to present its case to the state government to determine the project's future.

GDA Vice Chairperson RK Singh explained, "Under the hi-tech township policy of 2005, Suncity was expected to acquire/purchase 4,312 acres, but it fell short, prompting a committee under the chief secretary to reduce the land parcel to 828 acres and request a revised DPR from the developer."

He further noted, "According to a new MoU, the developer was required to acquire 75% of the land and reach the 828-acre mark by assimilating Gram Sabha or Bhumi Prabandhak Samiti (land management committee) land through resumption, with the GDA facilitating the process. However, the revised DPR revealed that the developer had acquired only 55% of the land, with the remaining 45% being government-owned land. This discrepancy led to the rejection of the DPR."

The developer had also acquired land from 22 villages where the land use was agricultural, and the government had waived the land conversion charge, which was another point of contention. The 2019 CAG audit highlighted a loss of Rs 1.72 billion in land use conversion charges, prompting the state government to seek reimbursement from Suncity, which remains unpaid.

Vinay Choudhary, a representative from Suncity, expressed concerns, stating, "The project has already commenced, with bookings for flats, villas, and plots initiated after the GDA approved the layout plan for 717 acres. The cancellation of the revised DPR is unfavourable news for both homebuyers and us."

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