UP Govt Tightens Norms for Commercial Land Bids
Real Estate

UP Govt Tightens Norms for Commercial Land Bids

The Uttar Pradesh government has revised its guidelines for commercial plot allotments, ensuring greater transparency and accountability in the process. As per the new rules issued, individual bidders must now independently meet all technical criteria, including net worth, solvency, and turnover, rather than relying on the qualifications of their holding companies.

This revision comes in the wake of controversies surrounding land allotments to two subsidiaries of Gurgaon-based M3M Group earlier this year. In May, the state government canceled plot allotments to Lavish Buildmart and Skyline Propcon, citing violations of eligibility terms. Lavish Buildmart had been allotted a plot worth ₹8.274 billion in Sector 94, while Skyline Propcon received one valued at Rupees 1.765 billion in Sector 72.

The cancellation stemmed from allegations that these subsidiaries were awarded plots at non-competitive rates, with bid increases of only ₹5 lakh over the reserve price. The Comptroller and Auditor General (CAG) had flagged similar concerns in its 2021 performance audit report, highlighting ambiguous eligibility conditions that allowed holding companies to use their qualifications for bids, even when subsidiaries failed to meet basic requirements.

Under the revised rules, for consortiums involving holding and subsidiary companies, the holding company’s qualifications will only be considered if it owns 100% equity in the subsidiary. For unrelated consortiums, only companies with at least 26% equity will qualify for technical evaluation.

Noida Authority has been directed to implement these changes in future land allotments. Sources within the Authority believe the updated norms will bolster the state government’s decision to repeal the cancellation of M3M subsidiaries’ allotments in June.

The new framework seeks to eliminate procedural irregularities, ensuring that all bidders meet eligibility criteria independently, thereby fostering fair competition in commercial land allocation.

The Uttar Pradesh government has revised its guidelines for commercial plot allotments, ensuring greater transparency and accountability in the process. As per the new rules issued, individual bidders must now independently meet all technical criteria, including net worth, solvency, and turnover, rather than relying on the qualifications of their holding companies.This revision comes in the wake of controversies surrounding land allotments to two subsidiaries of Gurgaon-based M3M Group earlier this year. In May, the state government canceled plot allotments to Lavish Buildmart and Skyline Propcon, citing violations of eligibility terms. Lavish Buildmart had been allotted a plot worth ₹8.274 billion in Sector 94, while Skyline Propcon received one valued at Rupees 1.765 billion in Sector 72.The cancellation stemmed from allegations that these subsidiaries were awarded plots at non-competitive rates, with bid increases of only ₹5 lakh over the reserve price. The Comptroller and Auditor General (CAG) had flagged similar concerns in its 2021 performance audit report, highlighting ambiguous eligibility conditions that allowed holding companies to use their qualifications for bids, even when subsidiaries failed to meet basic requirements.Under the revised rules, for consortiums involving holding and subsidiary companies, the holding company’s qualifications will only be considered if it owns 100% equity in the subsidiary. For unrelated consortiums, only companies with at least 26% equity will qualify for technical evaluation.Noida Authority has been directed to implement these changes in future land allotments. Sources within the Authority believe the updated norms will bolster the state government’s decision to repeal the cancellation of M3M subsidiaries’ allotments in June.The new framework seeks to eliminate procedural irregularities, ensuring that all bidders meet eligibility criteria independently, thereby fostering fair competition in commercial land allocation.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?