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
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?