Noida Authority Chief Executive Officer, Lokesh M, explained that despite sending several notices to Dosil Buildtech to pay its dues, there was no response.
In a significant jolt to the real estate sector in Noida, Dosil Buildtech Pvt Ltd has received a Rs. 130 crore faced cancellation of allotment of land due to failure to pay dues. The Noida authority took the drastic step after the company defaulted on its payment obligations for the land allotted in 2011, which had been lying idle for the past six years.
The disputed land, measuring 14,000 square meters, was initially allotted to Dosil Buildtech but has seen no construction activity over an extended period. Despite repeated reminders and notices from the Noida authority, the company failed to make the required payments. After exhausting all avenues to resolve the matter, the authority decided to seal the land and cancel the allotment.
Docile Buildtech, through its subsidiary Logics Developers, was originally allotted a large plot of 1 lakh square meters of land in Sector 143, Noida in 2011. A portion of this land was later transferred to Docile Buildtech in 2018. However, despite the company’s formal commitment, there was no development, and payment remained uncertain, with the company failing to respond to multiple communications from the authorities.
Noida Authority Chief Executive Officer, Lokesh M, explained that despite sending several notices to Dosil Buildtech to pay its dues, there has been no response. “We issued a final 15-day notice to the company on October 22, but there was no acknowledgment or payment. As a result, the allotment of 13,926 square meters of land has been cancelled, and the registration has been cancelled,” he said.
Bankruptcy proceedings and legal proceedings
Authorities have also taken legal action against Dosil Buildtech by filing a case in the National Company Law Tribunal (NCLT) in an attempt to recover the dues. However, bankruptcy proceedings are yet to begin for Docile BuildTech, while a similar bankruptcy proceeding is already underway for its subsidiary, Logics Developers.
The land, originally valued at Rs. 32 crore while it was Rs. 23,550 per square meter, now its estimated market value is Rs. 450 crores. However, at the time of registration, Dosil Buildtech paid Rs. 3.2 crores as an initial payment, but no further payments were made, and the total dues, including interest, stood at Rs. 130 crore has been done.
In a move to recover dues, the Noida authority wants to reassign the plot to another developer. The purpose of this action is to ensure that the land is developed and the financial loss to the authority is minimised.