NOIDA: The Noida Authority has decided to take a firm stance on recovering unpaid rent amounting to Rs 1,578 crore from licensed and leased properties.
This comes after the recent rejection by the authority’s board of a proposed one-time settlement (OTS-III) scheme intended to aid defaulters. Instead, the board has directed the authority to issue final notices to defaulting leaseholders — including govt departments, banks and petrol pump operators — asking it to seal properties if dues are not cleared promptly.
The OTS-III proposal, which would have been the third such scheme, was intended to ease the financial burden on defaulters by offering relief through recalculated dues at standard interest rates, potentially reducing the outstanding balance from Rs 1,578.14 crore to Rs 751.86 crore. However, the authority board declined this measure, opting instead for direct action against 49 defaulting entities, which include 24 govt department properties, 15 petrol pump sites and 10 bank locations.
“The final notices will give these defaulters a last chance to pay their dues in full,” a Noida Authority official said, adding, failure to comply will result in property sealing.
No further settlement schemes or grace periods will be provided and the authority is prepared to enforce property sealing as a recovery measure. The authority’s decision follows mounting pressure to address long-standing dues and accountability concerns raised in the recent State Legislative Committee and CAG audits.
Previous schemes (OTS-I and OTS-II), introduced in 2019 and 2021, had limited success, as many licensees filed legal challenges against payment demands.
In a prominent case, the Indian Oil Corporation Ltd., which holds multiple licences for petrol pump sites in Noida, was ordered by the high court to participate in mediation with the authority.
Despite multiple meetings, the oil corporation did not comply with requests for comparable rental rates, delaying a resolution.
