CBI Investigates Noida Sports City Project Issues
The Central Bureau of Investigation (CBI) has opened an investigation into one of Uttar Pradesh’s biggest land allocation scandals, filing three FIRs against major real estate firms Logix Infrastructure, Xanadu Estates, and Lotus Green Constructions. The alleged ₹9,000 crore scam involves Noida’s Sports City projects in Sectors 78, 79, and 150, which promised world-class sports facilities but focused on residential development instead.
Main Claims in the Noida Sports City Scam
- Land allotment violations: Developers allegedly worked with Noida Authority officials to under price land, then transferred ownership without approvals, skipping necessary procedures.
- Financial mismanagement: Lease premiums, penalties, and transfer charges were unpaid despite issuing unlawful occupancy certificates.
- Incomplete infrastructure: Only 30% of the promised sports amenities were built; 70% of the land was repurposed for profitable residential projects.
- Fraudulent sub-leasing: Allegations include violating memorandums of understanding (MoUs) by sub-leasing plots to other entities.
Roles of Involved Parties
Logix Infrastructure: Led by promoters Shakti Nath, Meenu Nath, and Vikram Nath, the firm allegedly manipulated land use despite contractual obligations.
Xanadu Estates & Lotus Green Constructions: Both entities, sharing directors Nirmal Singh, Vidur Bharadwaj, and Surpreet Singh Suri, face accusations of breaching land deed terms.
Noida Authority Officials: Unidentified staffs are implicated in approving improper completions and failing to recover dues.
Judicial Intervention Prompts Action
The Allahabad High Court’s February 2024 directives mandated a CBI-ED probe after identifying systemic failures. The court described the situation as a 'dirty nexus' where developers exploited loopholes to dodge financial and legal responsibilities. Judges Mahesh Chandra Tripathi and Prashant Kumar emphasized the need for accountability, criticizing insolvency proceedings as attempts to ‘evade liabilities’.
Impact on buyers
- **: Homebuyers face potential losses as occupancy certificates were issued prematurely. The court has instructed the Noida Authority to cancel allotments if developers don’t clear dues or complete projects.
Broader Implications for Real Estate
This case highlights vulnerabilities in mega urban development schemes, where oversight gaps are exploited for financial gains. With the Supreme Court currently assessing interim measures, the outcome may set precedents for accountability in public-private infrastructure projects.
'This can be a case study of the dirty nexus between builders and Noida Authority officials, where benefits were granted contrary to the scheme’s guidelines.' - Allahabad High Court
The unfolding investigation underscores the risks of unchecked collusion between developers and administrative bodies, raising critical questions about transparency in large-scale real estate ventures.