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The Uttar Pradesh state cabinet has cleared a key proposal from the Lucknow Development Authority (LDA).
The proposal will release 2,747 mortgaged plots in Sushant Golf City. These plots were sold by Ansal Properties & Infrastructure Ltd.
LDA vice-chairperson Prathamesh Kumar shared this update.
Kumar said the registries of these plots will not be cancelled. This move is aimed at shielding buyers from legal uncertainty. The approval was granted at a cabinet meeting held on September 15.
Next Steps for the Township
Following the decision, LDA will place a proposal before the National Company Law Tribunal. This will help enable completion of the township.
The authority will initiate further action once it receives the required permissions.
Background on the Mortgaged Plots
Kumar said Ansal had mortgaged 3,489 plots with LDA. This was done as security under the township agreement.
The plots were kept as a safeguard. This allowed the authority to sell them and use the proceeds for development. This would apply if the developer failed to complete the promised work on time.
Rules bar a developer from selling mortgaged plots without prior permission from LDA. However, Ansal went ahead and sold 2,747 of the mortgaged plots.
This prompted the authority to seek a resolution. The goal was to protect purchasers while ensuring pending development is carried out.
Kumar said cancelling the registries would have left plot owners in uncertainty. LDA therefore proposed releasing the mortgaged plots instead. The cabinet accepted this plan.
Also Read: UP Clears ₹24,000 Crore Ganga Expressway Expansion Plan
How Development Will Proceed
LDA will carry out development in the partially developed and undeveloped parts of Sushant Golf City. The release of mortgaged plots will happen sector-wise or pocket-wise. This will occur after development is completed and completion certificates are issued.
- Development to proceed in undeveloped and partially developed sectors
- Plot release to follow a sector-wise or pocket-wise process
- Release tied to issuance of completion certificates
Also Read: UP RERA Approves 13 Realty Projects Worth Rs 2,380 Crore
Option for Early Release
A provision also allows plot owners to seek early release before a completion certificate is issued. To do this, owners must deposit a guarantee with LDA.
This guarantee is equivalent to a fee fixed by the authority's board. The deposit will be refunded once work is completed and certificates are issued.
This option gives buyers flexibility while still ensuring that development obligations across the township are met.
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