UP Government Restores Noida Plot to GPL Infrabuild with Zero-Period Waiver

UP Government Restores Noida Plot to GPL Infrabuild with Zero-Period Waiver

Real Estate

The Uttar Pradesh government has reversed the Noida Authority’s 2022 cancellation of a commercial plot allotted to GPL Infrabuild in Sector 106, Noida. Along with restoring the allotment, the state has also extended a zero-period waiver, acknowledging that the developer had been unable to take possession of the land due to encumbrances beyond its control.

The 2,000 sq. metre parcel was originally allotted to GPL Infrabuild in April 2016 for an IT/ITES development. A lease deed was signed in March 2017. However, the company could not start work because a high-tension electricity tower and transmission line ran across the site, leaving the land unfit for construction.

In December 2022, the Noida Authority canceled the allotment, citing failure to begin project development on time. GPL Infrabuild challenged the order under the UP Urban Planning and Development Act, 1973, and the UP Industrial Area Development Act, 1976, arguing that the delay was caused entirely by the presence of the tower, which the Authority itself had failed to remove.

After reviewing the case, Additional Chief Secretary (Industrial Development) Alok Kumar ruled that an allottee cannot be penalized when possession of a plot has not been given in encumbrance-free condition.

The government’s order states that:

  • The cancellation of December 2022 stands revoked.
  • The time period from March 30, 2017 (lease execution) until September 8, 2025 (when the encumbrance was cleared) will be treated as zero period.
  • GPL Infrabuild will not face restoration charges, penalties, or interest for the disputed period.
  • The Noida Authority must hand over the plot immediately in obstruction-free condition.

The decision highlights a long-standing issue in Noida and Greater Noida — developers being penalized for delays even when plots are handed over with unresolved hurdles. By granting zero-period relief, the government has underlined that the responsibility of delivering clear possession lies with the development authority.

Industry watchers believe the order could set a benchmark for similar disputes. Many developers whose projects were delayed due to high-tension lines, encroachments, or pending clearances may now seek comparable relief.

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