In a major step to enforce accountability in industrial land use, the Uttar Pradesh government has backed the Noida Authority’s decision to cancel multiple IT and IT-enabled services (ITES) plots where construction has failed to take off despite repeated notices.
Lokesh M, Chief Executive Officer of the Noida Authority, confirmed the move, stating, “We have cancelled allotments of plots that remained non-functional despite repeated reminders.” However, plots with over 10% completed construction were spared.
Also Read: Uttar Pradesh to Roll Out PMAY-U 2.0: A New Chapter in Affordable Housing
Why the Cancellations Took Place
According to Noida Authority rules, an allotment stands cancelled if the plot owner fails to develop the land and obtain a functional certificate within seven years.
Following this rule, on July 10, 2023, the authority revoked allotments of Elevator IT Solutions and 28 other similar plots, each showing less than 10% construction progress. Deposits for these plots were also forfeited.
The Uttar Pradesh Industrial Development Department later reviewed and upheld the cancellations in an order issued on October 23, 2025, stating that the authority acted within its rights after granting multiple extensions and statutory relaxations.
The Elevator IT Solutions Case
The case of Elevator IT Solutions Ltd serves as a key example. The company’s plot in Sector 62, Noida, was originally allotted in 2008 with a completion deadline of August 26, 2013. Despite several extensions—including an additional four years after the plot’s transfer to Elevator IT Solutions in 2016—no construction was ever initiated.
In July 2020, the state government enacted an ordinance (later formalized as the UP Industrial Area Development (Amendment) Act, 2022), which required allottees holding plots for over eight years without completion certificates to finish construction by December 31, 2022, or risk cancellation.
The Noida Authority issued a final warning on June 18, 2021, clearly stating that leases would be revoked if units remained non-operational. Despite this, Elevator IT Solutions neither responded nor commenced construction, leading to automatic cancellation and forfeiture of deposits.
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Arguments and Verdict
During a hearing on October 23, 2025, before Additional Chief Secretary (Industrial Development) Alok Kumar, the company challenged the cancellation, claiming it violated lease terms and was discriminatory since other allottees had been given extensions.
The authority, however, rebutted the claims, emphasizing that due process was followed and notices were properly served. It clarified that only projects showing more than 10% progress were granted time extensions, while the 29 underperforming plots, including Elevator IT Solutions’, were uniformly cancelled.
After evaluating both sides, ACS Alok Kumar dismissed the company’s plea, ruling that non-construction constituted a material breach of lease conditions and that the cancellation was legally valid under the 2020 Ordinance and 2022 Act. He also confirmed there was no discrimination since all similar cases were treated equally.
Restorations for Eligible Plots
Noida Authority’s Additional CEO Vandana Tripathi added that the authority has restored 19 plots whose owners provided proof of having completed over 10% construction, following directives from the industrial department.
This decisive move reaffirms the state’s intent to ensure that valuable industrial land is utilized productively, preventing speculative holding and promoting genuine development.
In a major step to enforce accountability in industrial land use, the Uttar Pradesh government has backed the Noida Authority’s decision to cancel multiple IT and IT-enabled services (ITES) plots where construction has failed to take off despite repeated notices.
Lokesh M, Chief Executive Officer of the Noida Authority, confirmed the move, stating, “We have cancelled allotments of plots that remained non-functional despite repeated reminders.” However, plots with over 10% completed construction were spared.
Also Read: Uttar Pradesh to Roll Out PMAY-U 2.0: A New Chapter in Affordable Housing
Why the Cancellations Took Place
According to Noida Authority rules, an allotment stands cancelled if the plot owner fails to develop the land and obtain a functional certificate within seven years.
Following this rule, on July 10, 2023, the authority revoked allotments of Elevator IT Solutions and 28 other similar plots, each showing less than 10% construction progress. Deposits for these plots were also forfeited.
The Uttar Pradesh Industrial Development Department later reviewed and upheld the cancellations in an order issued on October 23, 2025, stating that the authority acted within its rights after granting multiple extensions and statutory relaxations.
The Elevator IT Solutions Case
The case of Elevator IT Solutions Ltd serves as a key example. The company’s plot in Sector 62, Noida, was originally allotted in 2008 with a completion deadline of August 26, 2013. Despite several extensions—including an additional four years after the plot’s transfer to Elevator IT Solutions in 2016—no construction was ever initiated.
In July 2020, the state government enacted an ordinance (later formalized as the UP Industrial Area Development (Amendment) Act, 2022), which required allottees holding plots for over eight years without completion certificates to finish construction by December 31, 2022, or risk cancellation.
The Noida Authority issued a final warning on June 18, 2021, clearly stating that leases would be revoked if units remained non-operational. Despite this, Elevator IT Solutions neither responded nor commenced construction, leading to automatic cancellation and forfeiture of deposits.
Also Read: Uttar Pradesh Approves GIS-Based Master Plan 2031 for Ghaziabad with Focus on Transit-Oriented Development
Arguments and Verdict
During a hearing on October 23, 2025, before Additional Chief Secretary (Industrial Development) Alok Kumar, the company challenged the cancellation, claiming it violated lease terms and was discriminatory since other allottees had been given extensions.
The authority, however, rebutted the claims, emphasizing that due process was followed and notices were properly served. It clarified that only projects showing more than 10% progress were granted time extensions, while the 29 underperforming plots, including Elevator IT Solutions’, were uniformly cancelled.
After evaluating both sides, ACS Alok Kumar dismissed the company’s plea, ruling that non-construction constituted a material breach of lease conditions and that the cancellation was legally valid under the 2020 Ordinance and 2022 Act. He also confirmed there was no discrimination since all similar cases were treated equally.
Restorations for Eligible Plots
Noida Authority’s Additional CEO Vandana Tripathi added that the authority has restored 19 plots whose owners provided proof of having completed over 10% construction, following directives from the industrial department.
This decisive move reaffirms the state’s intent to ensure that valuable industrial land is utilized productively, preventing speculative holding and promoting genuine development.
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