Saturday, June 7, 2025

Supreme Court Puts Brakes on YEIDA’s Sports City Revival Plans

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Greater Noida, India – The ambitious Sports City project, a cornerstone of the Yamuna Expressway Industrial Development Authority’s (YEIDA) regional development plans, faces renewed uncertainty following a recent Supreme Court directive. While YEIDA moved swiftly to revive the project by forging new agreements with third-party developers, the apex court has temporarily halted these efforts, underscoring the complex legal challenges still entwined with the long-stalled development.

At the heart of the matter is the sprawling 1,000-hectare Sports City, originally allocated to Jaiprakash Associates Ltd (JAL). After years of delays and mounting dues, YEIDA took decisive action in 2020, cancelling JAL’s allotment. This move aimed to unlock the future of thousands of homebuyers whose investments were caught in limbo.

A significant turning point came in March 2025, when the Allahabad High Court largely upheld YEIDA’s cancellation of JAL’s land allotment. Crucially, however, the High Court also provided a lifeline to the estimated 13,000 homebuyers. It ruled that the rights of 13 third-party developers, who had purchased plots from JAL in Sectors 19 and 25, must be protected. This landmark decision mandated YEIDA to directly execute fresh lease deeds with these sub-lessees, effectively stepping in to ensure project completion.

Following the High Court’s verdict, YEIDA commenced the process of formalizing these new agreements, instructing developers and homebuyers to submit necessary documents by June 21, 2025. To further expedite the revival, a dedicated monitoring committee, comprising government officials, YEIDA executives, RERA representatives, and nominees from homebuyers, has been established to oversee the progress of these 13 projects. The High Court also imposed strict timelines for YEIDA to complete 12 partially built JAL housing projects, with deadlines ranging from one to three years based on their current completion status. In a measure offering respite to distressed buyers, a “zero period” from February 2020 to March 2024 was declared, waiving interest on outstanding dues during this time.

However, the Supreme Court’s intervention in May 2025 has introduced a fresh layer of complexity. Responding to an appeal filed by JAL, the apex court, while not staying the High Court’s underlying decision, explicitly restrained YEIDA from onboarding any new developers without its express permission. This directive effectively puts a temporary brake on YEIDA’s broader plans for the Sports City. The next crucial hearing in the Supreme Court is scheduled for July 19, 2025.

Beyond the immediate project concerns, the Supreme Court has also broadened its purview, directing the Central Bureau of Investigation (CBI) to probe an alleged builder-bank nexus and instances of misuse of subvention schemes across various projects, including some within the Yamuna Expressway region. This overarching investigation highlights a wider scrutiny of real estate practices that have plagued numerous developments, adding another dimension to the ongoing legal and administrative efforts to bring stalled projects to fruition.

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