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The Noida Authority’s Chief Executive Officer, Lokesh M, clarified that in spite of sending out numerous notifications to Docile Buildtech to remove its fees, there was no reaction.
Builder stopped working to pay Rs 130 crore fees for a 2011 quantity. (Representative
Image)
In a substantial obstacle for the property field in Noida, Docile Buildtech Private Limited encountered the termination of its land quantity as a result of a failing to pay an impressive quantity of Rs 130 crore. The Noida Authority took this radical action after the firm back-pedaled its repayment responsibilities for land allocated in 2011, which had actually been left inactive for the last 6 years.
The land concerned, gauging 14,000 square metres, was at first assigned to Docile Buildtech however saw no building and construction task over an extensive duration. Despite duplicated suggestions and notifications from the Noida Authority, the firm stopped working to make the required repayments. After tiring all opportunities to settle the issue, the authority took the choice to secure the land and annul the quantity.
Docile Buildtech, via its subsidiary Logics Developers, had actually initially been allocated a bigger story of land measuring 1 lakh square metres in Sector 143 of Noida in 2011. A section of this land was later on moved to Docile Buildtech in 2018. However, in spite of the firm’s official dedication, no advancement occurred, and the repayment stayed uncertain, with the firm falling short to react to the authorities’ several interactions.
The Noida Authority’s Chief Executive Officer, Lokesh M, clarified that in spite of sending out numerous notifications to Docile Buildtech to remove its fees, there was no reaction. “We had actually released a last 15-day notification to the firm on October 22, however there was no recommendation or repayment. Consequently, the quantity of 13,926 square metres of land has actually been terminated, and the enrollment stands withdrawed,” he stated.
Insolvency Process and Legal Action
Authorities have also taken legal action against Docile Buildtech, filing a case with the National Company Law Tribunal (NCLT) in an attempt to recover the owed amount. However, the insolvency proceedings for Docile Buildtech have not yet begun, while a similar insolvency process is already underway for its subsidiary, Logix Developers.
The land, which was originally valued at Rs 32 crore when it was allotted at a rate of Rs 23,550 per square metre, now has an estimated market value of Rs 450 crore. Although Docile Buildtech made an initial payment of Rs 3.2 crore at the time of registration, no further payments were made, and the total dues, including interest, have ballooned to Rs 130 crore.
In a move to recover the outstanding amount, the Noida Authority intends to reassign the plot to another developer. This action aims to ensure the land is developed and the financial loss to the authority is minimised.
