Lucknow: The Allahabad High Court has ordered a Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) probe into the Noida Sports City scam, directing action against all individuals involved, including builders, consortium partners, Noida officials, developers, and others linked to the irregularities.
A division bench comprising Justice Mahesh Chandra Tripathi and Justice Prashant Kumar delivered ten separate judgments concerning three of the four Sports City projects in Noida, holding the main developer and consortium partners accountable for violations.
Investigation into Multiple Irregularities
The court emphasized that there was no alternative but to hand over the investigation to the CBI, given the widespread corruption. It has also ordered an inquiry into land-use violations, financial irregularities, bankruptcy proceedings, and non-completion of sports facilities.
Homebuyers Face Further Delays
The verdict has raised concerns for 15,000 homebuyers waiting for their flat registrations in the affected projects. Buyers in four sectors of Noida have already endured a 7-8 year delay in receiving their flats due to the lack of sports infrastructure development as mandated by project plans.
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In January 2021, the Noida Authority had put a hold on occupancy certificates, subdivision of plots, and other approvals, citing non-compliance with project guidelines and unpaid dues. This delay is expected to continue as the investigation progresses.
Court Slams Developers for Misuse of Concessions
The court found that, despite receiving significant benefits from the Noida Authority, developers prioritized commercial construction over the mandatory sports infrastructure. The verdict pertains to Sports City projects in Sectors 78, 79, and 101, along with two projects in Sector 150, developed by Logix Infra Developers and Lotus Greens Construction. The primary developers of sectors 78-79 and Logix’s project are currently undergoing bankruptcy proceedings, which the court described as a deliberate strategy to evade financial and legal responsibilities.
Developers had approached the court seeking protection from Noida Authority’s actions, but the High Court dismissed their petition, affirming that they failed to execute the project as per the approved plan and used insolvency as a shield to avoid accountability. The court ruled that Noida Authority has full rights to recover pending dues and take legal action. It also directed the state government to investigate financial mismanagement and fraud.
CAG Report Uncovered Rs 30,000 Crore Irregularities
The Comptroller and Auditor General (CAG) had earlier audited Noida Authority’s functioning from 2005 to 2017, exposing financial irregularities worth Rs 30,000 crore. The Public Accounts Committee (PAC) has been reviewing these findings and seeking answers from the concerned authorities.
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However, with the High Court ordering a CBI investigation, the PAC’s role in the probe may now be reduced.
Public Accounts Committee’s Involvement
Following the CAG’s objections, the Public Accounts Committee has been conducting hearings in the Sports City case. The committee had recommended allowing developers to continue work in Sector 150 and 152 after reviewing their proposals. It had also instructed the government to develop an action plan and lift certain restrictions.
With the CBI and ED stepping in, the case is set to take a significant legal turn, potentially leading to stringent action against those involved in the Noida Sports City scam.