by THEPROPZY 
NOIDA: The Uttar Pradesh government on Tuesday introduced significant revisions to the regulations governing the allotment of commercial plots in the city. These updated norms now require individual bidders, and not merely their holding companies, to independently satisfy all technical eligibility criteria, such as demonstrating adequate net worth, solvency, and turnover. This move aims to ensure a more robust and accountable bidding process for commercial land allocation.
The newly established guidelines are anticipated to enhance transparency and fairness in the allocation of commercial land while addressing procedural loopholes that have previously caused controversies. These reforms come in the wake of allegations of irregularities in the allotment of prime plots to two subsidiaries of the Gurgaon-based real estate giant M3M earlier this year, which raised questions about the integrity of the process.
In May, the Uttar Pradesh government cancelled the allotment of plots to Lavish Buildmart and Skyline Propcon, citing violations of eligibility norms as specified in the Noida Authority’s e-brochure. Lavish Buildmart had been awarded a commercial plot in Sector 94 valued at an astounding Rs 827.4 crore under a scheme launched in November 2022. Similarly, Skyline Propcon secured a plot worth Rs 176.5 crore in Sector 72 through an allotment process conducted in February 2022.
Concerns were formally raised in a complaint filed on February 28, alleging that the plots were awarded at rates that lacked competitive bidding. The principal secretary of the UP industrial development department, Anil Kumar Sagar, issued a cancellation order, stating that in both instances, the bid quotes surpassed the reserve price by a mere Rs 5 lakh. He further emphasized that although tender rules permit considering a single bid after extending the deadline twice, the primary purpose of a tender process is to achieve competitive pricing—something that was evidently missing in these cases.
However, on June 12, the state government reversed the cancellation orders after carefully reviewing detailed reports from the Noida Authority and taking into account appeals from the two companies. The decision to reinstate the allotments highlights the complexities of balancing procedural fairness with administrative considerations in high-stakes real estate dealings.
This regulatory overhaul signals a strong commitment by the Uttar Pradesh government to uphold transparency, competitiveness, and accountability in the allocation of valuable commercial plots in one of the country’s fastest-growing urban hubs.
