NOIDA: Now in the limelight as the agency in charge of developing the area around the upcoming Noida International Airport, YEIDA's functioning has drawn fire from the Comptroller and Auditor General, which found major lapses in both policy and procedures adopted by it in the 16-year period from 2005-2021 that it assessed.
All these lapses have added up and manifested today as the country's biggest stalled projects problem – if YEIDA, Noida and Greater Noida are taken together – that different kinds of govt and court interventions have found hard to crack. Among irregularities the audit found was YEIDA's allotment of residential township and group housing plots which, according to the govt auditor, led to financial losses of Rs 4,226 crore.
CAG found that eligibility criteria for these schemes were grossly inadequate, allowing applicants with minimal financial capacity to bid for high-value plots. This led to a mismatch between project scale and the bidder's capability. In some cases, developers secured plots valued at up to 18 times their declared net worth. The irregularities are similar to those CAG found in its earlier assessment of Noida Authority's performance.
YEIDA allotted 14 residential township plots, measuring 2.5 lakh square metres to 8 lakh sqm under three schemes for the construction of ‘plotted and flatted' residential dwellings in 2010-2011. After the sub-division of one plot into two, sub-leases by four allottees to 11 sub-lessees, and by one sub-lessee to three sub-lessees, there were a total 29 allottees.
Out Of these, plots of 16 allottees were either cancelled or surrendered, and 13 ran its delays, resulting in overdues of Rs 4,185 crore as of Sept 30, 2022, according to the CAG report.
YEIDA allotted five group housing plots between Feb 2011 and Sept 2014, measuring 82,346 sqm to 1.37 lakh sqm, under three schemes. Allotment of three of these plots was cancelled by YEIDA, and one plot was partially surrendered by the allottees. Projects on the remaining plots (including the partially surrendered plot) were delayed.
Further, CAG pointed out, eligibility conditions laid down by YEIDA were inconsistent with the size and value of the plots. The same technical and financial criteria applied to smaller plots were used for larger, high-value plots, allowing applicants with insufficient capabilities to secure big projects.
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