NOIDA: The Noida authority has said that it has cancelled the allotment of information technology (IT) and information technology enabled services (ITES) plots where no construction has taken place so far despite various notices.
“We have cancelled the allotment of those plots, which remained without being functional despite notices in the past,” said Lokesh M, chief executive officer, Noida authority, adding that the authority did not cancel the allotment if the owner had completed more than 10 per cent construction.
As per rule, the Noida authority cancels allotment if the owner fails to build it and obtain functional certificate within seven years.
The authority on July 10, 2023 cancelled the allotment of Elevator IT Solutions and 28 other similar plots (each with less than 10% construction progress), forfeiting their deposits.
In an order issued on October 23, 2025, the Uttar Pradesh Industrial Development Department supported Noida authority’s step to cancel the land allotment of the industrial allottees, including that of one related to the Elevator IT Solutions Ltd, for failing to commence construction despite multiple extensions and statutory relaxations.
The decision was upheld by additional chief secretary (UP industrial development department) Alok Kumar last Thursday.
To be sure, the Elevator IT Solutions’ case involved a plot in Sector 62, Noida, allotted in 2008 for IT/ITES activities, with a lease deed requiring construction completion by August 26, 2013. However, no construction occurred within this period.
In 2016, the plot was transferred to Elevator IT Solutions, which was granted an additional four years, until August 26, 2017, to complete the project. Despite the extension, construction did not begin.
In July 2020, the UP government introduced an ordinance, later enacted as the UP Industrial Area Development (Amendment) Act, 2022, mandating that allottees holding plots for over eight years without completion certificates must finish construction by December 31, 2022, or face cancellation.
On June 18, 2021, the Noida authority in a notice warned the company of automatic lease revocation if the unit was not operational by the deadline.
The company neither commenced construction nor responded, leading to the cancellation of the allotment and forfeiture of the deposit.
On October 23, 2025, a hearing was held before ACS Kumar, who later issued an order, dismissing the firm’s request for a revision.
During this hearing, the Elevator IT Solutions argued that the cancellation was ultra vires the lease terms, as Clause 11(b) did not provide for automatic revocation. They also claimed discrimination, citing that other allottees received extensions until December 2023 or 2024, and argued that no prior notice under Section 7(d) of the Ordinance was served.
The authority, however, countered these claims stating that due process was followed, and the June 2021 notice was properly served. They clarified that extensions were only granted to allottees with construction progress above 10%, while the 29 plots, including Elevator IT Solutions’, showed less than 10% progress and were uniformly cancelled.
ACS Kumar on Thursday (October 23) rejected the company’s arguments, stating that non-construction constituted a material breach of lease conditions and statutory provisions. He found no merit in the claim of ultra vires cancellation, as the 2020 Ordinance and 2022 Act empowered the authority to revoke non-performing allotments.
The order concluded that there was no discrimination, as all plots with less than 10% construction were treated equally, and confirmed that the authority’s notice was duly served.
Consequently, the revision petition was dismissed, affirming the Noida authority’s decision.
Vandana Tripathi, additional chief executive officer (Noida authority) said, “We have, however, also restored the allotment for the 19 plots whose owners sought orders from the industrial department stating that they have done more than 10 % construction.”