CBI investigates Noida Sports City developers for fraud

The Central Bureau of Investigation (CBI) has filed three FIRs against developers involved in Noida's Sports City projects. The agency claims there were irregularities in land allotments that resulted in a loss of nearly ₹9,000 crore to the state. This action follows an order from the Allahabad high court for a thorough investigation into potential fraud involving the developers and Noida authority officials. The court's ruling on February 24 highlighted serious violations by the lead developers and their partners. These include misuse of land, mismanagement of funds, and failure to deliver promised sports facilities. The CBI has stated that the irregularities occurred between 2011 and 2017. Despite attempts, officials from the Noida authority and the developers have not responded to the allegations. The FIRs name several developers, including Logix Infrastructure and Lotus Green. They are accused under various sections of the Indian Penal Code and the Prevention of Corruption Act. The CBI has conducted searches at the Noida authority offices and the homes of the developers as part of the investigation. Earlier this month, the Supreme Court temporarily halted any coercive action against Lotus Green and Logix Infrastructure, allowing investigations to continue. The high court criticized ongoing insolvency processes for these developers, suggesting they were attempts to escape legal obligations. The court also noted severe shortcomings in the development process, stating it seemed tainted by fraud. An audit found that land had been sold at significantly lower prices and that important financial dues were unpaid. Additionally, occupancy certificates were issued despite incomplete sports facilities. Criticism was directed at the Noida authority and state government for their inaction, even when evidence of wrongdoing was presented. The court condemned a "dirty nexus" between developers and authority officials, where benefits were awarded against project guidelines. As a result, the court has ordered Noida authority to issue new notices to developers to settle their dues or risk losing their land allotments. Any developers not completing their projects will have to forfeit security deposits to compensate affected homebuyers. The original Sports City plan, proposed in 2004, aimed to create sports facilities but has largely resulted in residential and commercial development.