UPCIDA is strict about dues, ready to buy property again

Noida The Uttar Pradesh State Industrial Development Authority (UPCIDA) is fed up with the arrears and has also prepared to buy back the property if the arrears are not paid. Industrial Development Commissioner (IIDC) Manoj Kumar Singh wrote a letter saying that UPCDA should pay the dues and also give the authority an option to buy the plots.

Asset Reconstruction Company India Limited (ARCIL), industrial plot No. A-1 located at Surajpur, industrial area of ​​Gautam Budh Nagar, has arrears of Rs.778 crore. There has been a demand for priority in plot purchase as well as payment of UPCIDA. It is also pleaded that the price or bid given by the highest bidder for the property should be canceled and the plot should be re-bid to allow UPCIDA to participate in the bidding.

It is noteworthy that the total arrears of UPSIDA on the plot as on March 31, 2023 is Rs 777.84 crore, which includes transfer charges, interest, lease rent, extension fees etc. Besides, UPSIDA also expressed its intention to repurchase the plot. The total area of ​​these plots was 82.56 hectares (204 acres) with a cover area of ​​19.65 percent. It was UPCIDA’s own property.
Uttar Pradesh State Industrial Development Authority, UPCIDA, Industrial Development Commissioner, Authority, Purchase
Dealing lower than UPSIDA’s offer
IIDC Manoj Kumar Singh expressed apprehension that the Recovery Officer, DRT-2, Mumbai M/s Shakuntlam Landcraft Pvt. Ltd is finalizing the sale for Rs 359 crore. This price is much lower than UPSIDA’s offer of 10% above the reserve price of Rs 390.50 crore. In the board meeting of UPSIDA held on 23 November 2020, it was decided to authorize UPSIDA to participate in the DRT-led auction above 10% of the reserve price of Rs 350 crore. UPSIDA had sent a letter on January 23, 2023 seeking a proposal to repurchase the plot. ARCIL did not respond to UPSIDA’s letter. The Recovery Officer, Debt Recovery Tribunal (DRT) issued the resale notice on July 06, 2023 with a reserve price of Rs 355 crore. The sale notice mentions that a case regarding the authority’s dues of Rs 777.84 crore is pending before the DRT court, against which an appeal has been filed with ARCIL. UPSIDA wrote to the DRT through e-mail dated August 22, 2023 regarding its intention to participate in the bidding and requested to reschedule the bidding date. However, it was later learned that the DRT had initiated the sale process without accepting the authority’s request.

Rashmi Mathur

3 years experience of Contract Specialist in end-to-end Contract Lifecycle Management for clients with global and domestic operations.

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