UP Cabinet Clears Release of 2,747 Mortgaged Sushant Golf City Plots

The Uttar Pradesh Cabinet has approved the Lucknow Development Authority’s proposal to release 2,747 plots in Sushant Golf City that had been mortgaged with the authority by Ansal Properties and Infrastructure Ltd.

The decision is significant for plot owners because the existing registries will not be cancelled. Instead, the LDA will gradually release the plots after completing pending development work and obtaining the required completion certificates.

The Cabinet cleared the proposal at its meeting on September 15. The LDA will now place the matter before the National Company Law Tribunal as part of the process for taking forward the development of the township.

Why were the Sushant Golf City plots mortgaged?

As part of the township agreement, Ansal Properties had mortgaged 3,489 plots with the LDA as security for completing the development.

Under the applicable arrangement, the developer could not sell these mortgaged plots without obtaining permission from the authority. However, Ansal sold 2,747 of these plots despite the restriction.

The situation left buyers caught between the developer’s transactions and the authority’s rights over the mortgaged land.

Rather than cancelling the registrations of these plots, the LDA proposed a mechanism under which the properties can be released while the authority takes responsibility for completing the remaining development.

The situation is part of a wider pattern of long-delayed Ansal developments in the NCR, where regulatory approvals and insolvency proceedings have affected project completion. 

What has the UP Cabinet approved?

The Cabinet has given its approval to the LDA’s proposal to release the 2,747 plots.

The important points are:

The release will not happen for all plots at once. The LDA plans to take up different sectors and pockets as development work is completed.

When will plot owners get their plots released?

The LDA will release plots after the required infrastructure and development work in the concerned area has been completed and completion certificates have been issued.

This means the Cabinet decision does not amount to an immediate release of all 2,747 plots.

There is, however, another option for owners who do not want to wait for completion of the entire development process.

Plot owners can approach the LDA for an earlier release by depositing a guarantee equivalent to the fee fixed by the authority’s board. The guarantee is to be returned after the required development work and certification are completed.

For owners, the distinction is important: the Cabinet has protected the existing registrations, but the physical and regulatory release of individual plots will still depend on the LDA’s development process.

LDA to take up pending township development

The plot issue is part of a much larger problem at Sushant Golf City.

The LDA has been working on a plan to complete infrastructure that remains unfinished across parts of the township. The pending work includes roads, power infrastructure, water supply, sewerage, drainage and parks.

A recent assessment put the estimated cost of completing the remaining development at around ₹2,216.91 crore. The authority has also estimated a potential maximum liability of about ₹2,912 crore.

The LDA has been examining different ways of funding the work, including the use of available land and revenue from future development or auctions.

The authority has also moved towards taking the township development process forward through the insolvency proceedings involving Ansal Properties.

Why does the NCLT process matter?

The proposal will now be placed before the National Company Law Tribunal, which is handling the insolvency-related proceedings involving the developer.

For plot owners, the NCLT process matters because the township has several overlapping issues involving the developer, land, pending infrastructure and financial claims.

The Cabinet’s decision provides a framework for dealing with the 2,747 mortgaged plots, but further action will still depend on the approvals and procedures that follow.

What should existing plot owners check?

Owners should not treat the Cabinet approval as a substitute for checking the documents relating to their individual plot.

Before proceeding with any sale, construction or further transaction, owners should verify:

• The original sale and registration documents
• Plot number, sector and pocket details
• Whether the plot falls among the 2,747 affected plots
• The current status of the plot with the LDA
• Any mortgage or encumbrance recorded against the property
• Applicable development and completion status
• RERA and other project-related records, wherever applicable

Checking the land record and encumbrance position is particularly relevant where a property has previously been mortgaged or involved in a dispute.

For buyers checking land records in Uttar Pradesh, UP Bhulekh land records can provide information on ownership, transactions and recorded encumbrances. 

A decision that keeps existing registries intact

The Cabinet’s approval changes the immediate position for the 2,747 affected plot owners. Instead of moving towards cancellation of their registrations, the LDA will work towards releasing the plots while also completing the unfinished parts of the township.

The process, however, is likely to be gradual. Plot-wise release will depend on development in the respective sector or pocket, completion certificates and the next steps in the NCLT proceedings.

For buyers who already hold registered plots in Sushant Golf City, the key development is that their existing registries are proposed to remain intact, while the LDA works through the larger development and legal issues surrounding the township.