The Uttar Pradesh government has decided to revoke the allotment of two land parcels in Noida to M3M Group subsidiaries, Lavish Buildmart and Skyline Propcon. This decision was made due to concerns over the non-competitive nature of the allotment process, as the companies were granted the land at what was deemed to be below-market rates. The cancellation of these allotments represents a significant setback for M3M, particularly in light of ongoing investigations by the Enforcement Directorate.
The cancellation also raises uncertainties for home buyers, as both projects associated with these land parcels had been initiated, with some units already sold. According to Anil Kumar Sagar, the principal secretary of Uttar Pradesh’s infrastructure and industrial development department, the allotments were made based on a single bid, with minimal competition evident as the bidding companies quoted only marginally higher than the reserved price.
One of the affected projects was a luxury retail and penthouse development in Sector 72, for which M3M had committed a substantial investment of ₹700 crore. This included ₹250 crore for land acquisition and ₹450 crore for construction costs. Additionally, M3M had launched another project, M3M The Cullinan, in Sector 94, spanning 13 acres and boasting over 4 million square feet of saleable area. The planned investment for this project, including land costs, was ₹4,000 crore.
It’s worth noting that M3M had obtained all necessary approvals for these projects, including registration from the Real Estate Regulatory Authority (RERA). However, with the cancellation of the land allotments, the future of these developments is uncertain, leaving both the developer and prospective buyers in a state of limbo.