The Yamuna Expressway Authority on Saturday cancelled the allotment of 1,000 hectares of land in Greater Noida to the Jaypee group over non-payment of dues, officials said. India's only Formula One motor racing circuit is built on this land. The decision was taken by the Yamuna Expressway Industrial Development Authority (YEIDA) in its 66th board meeting.
"A thousand hectare land was allotted to Jaypee Sports Limited, an affiliate of Jaypee group, in YEIDA's special economic zone. Jaypee Sports Limited has been defaulting on payments to YEIDA and not completing projects promised to buyers," said Arunvir Singh, CEO of Yamuna Expressway Industrial Development Authority.
The embattled business group defaulted on payments of over Rs 500 crore, Mr Singh said.
The Jaypee group had sub-leased plots to 11 builders on the allocated land and separately taken around Rs 2,000 crore from home-buyers in 10 projects but not delivered it, he added.
"So, in light of the violation of lease deeds, it was decided during the board meeting that the land allotment be cancelled," he said.
However, the authority said modalities are being worked out to safeguard the interests of third parties and home-buyers who had invested in projects located in this land parcel.