Noida Authority Chief Executive Officer Lokesh M. explained that despite sending several notices to Dosile Buildtech to pay its dues, there was no response.
The builder failed to pay dues of Rs 130 crore for the 2011 allotment. (Representative image)
In a major setback for the real estate sector in Noida, Docile Buildtech Private Limited faced cancellation of its land allotment due to its failure to pay an outstanding amount of Rs 130 crore. The Noida authority took the drastic step after the company defaulted on its payment obligations for the land allotted in 2011, which had been dormant for the past six years.
The land in question, measuring 14,000 square meters, was initially allotted to Dosile Build Tech but saw no construction activity over an extended period. Despite repeated reminders and notices from the Noida authority, the company failed to make the required payment. After exhausting all avenues to resolve the matter, the authority decided to seal the land and cancel the allotment.
Docile Buildtech, through its subsidiary Logics Developers, was originally allotted a large plot of 1 lakh square meters of land in Sector 143, Noida in 2011. A portion of this land was later transferred to Docile Buildtech in 2018. However, despite the company’s formal commitment, no progress was made, and payments remained irregular, with the company failing to respond to several communications from the authorities.
Noida Authority Chief Executive Officer Lokesh M. explained that despite sending several notices to Dosile Buildtech to pay its dues, there was no response. “We had issued a 15-day final notice to the company on October 22, but there was no receipt or payment. As a result, the allotment of 13,926 square meters of land has been cancelled, and the registration cancelled,” he said. He said.
Bankruptcy proceedings and legal proceedings
Authorities have also taken legal action against Docile Buildtech, which has filed a case in the National Company Law Tribunal (NCLT) in an attempt to recover the dues. However, bankruptcy proceedings for Docile Buildtech are yet to begin, while bankruptcy proceedings for its subsidiary, Logix Developers, are already underway.
The land, which was originally worth Rs 32 crore when it was allotted at 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 reached Rs 130 crore.
In a move to recover the outstanding amount, the Noida authority plans to reassign the plot to another developer. The purpose of this action is to ensure the development of the land and reduce the financial loss to the authority.