A lead member of a consortium who opts out lacks locus standi to challenge the actions of the authority regarding project delays and cannot claim damages.

Hon'ble Prashant Kumar,J.

TABLE OF CONTENTS

1. Heard Sri Amit Shukla, Advocate holding brief of Sri Prakeek Sinha, learned counsel for the petitioner, Sri Devesh Vikram, learned Additional Chief Standing Counsel and Sri Mohan Srivastava and Sri Fuzail Ahmad Ansari, learned Standing Counsel for State-respondents and Sri Manish Goyal, learned Senior Advocate assisted by Sri Kaushalendra Nath Singh and Ms. Anjali Gokhlani, learned counsel for the respondent-NOIDA. FACTS OF THE CASE

2. New Okhla Industrial Development Authority, Noida sometime in the year 2011 floated a scheme known as “Sports City-II” which was to be developed in Sectors 78, 79 and 150 of NOIDA. The scheme was launched on 03.03.2011 and closed on 24.03.2011. As per the Scheme, a Sports City was to be developed on a land parcel of 72.75 hec. in Sector 78, 79 and another in Sector 150 of NOIDA. The reserve price for the scheme was set at Rs.11,500/- per square metre. The price was purposely kept low as the developer was supposed to create sports facilities over 70% of the entire land allotted to them, which was not marketable, and on top of it, the developer had to infuse his funds to develop the same. In the remaining 30% of the land, (28% was meant for Group Housing and 2% for commercial purpose). The scheme clearly stated that the population density in this Sports City would be 1650 people per hectare. In this scheme, maximum permissible Floor Area Ratio, FAR of the total land was 1.5. The open/green area of the recreational component (i.e. sports activities such as Golf course, stadium etc. and open spaces) was to be considered as open green areas for the entire land. The brochure of the Sports City laid down conditions for the development of Sports City. The relevant part of the brochure is as follows:-

“ The shareholding of the lead member in the consortium shall remain at least 30% till the temporary occupancy/completion certificate of at least one phase of the project is obtained from the Noida.

In case of Consortium, the members shall submit a Memorandum of Agreement (MOA) conveying their intent to jointly apply for the scheme(s), and in case the plot is allotted to them, the MOA shall clearly define the role and responsibility of each member in the consortium, SPCs that will subsequently carry out all its responsibilities as the allottee, and will have to construct on their own a minimum of 30% of the total permissible FAR on allotted area.

The “Lead Member” shall continue to hold at least 30% of the shareholding in the SPC till the temporary occupancy/completion certificate at least one phase of the project is obtained from the NOIDA In case of default in depositing the installments or any payment, interest @ 14% compounded half yearly shall be leviable for defaulted period on the defaulted amount.

The Lessee shall be required to complete the construction of minimum 15% of the permissible area earmarked for sports, institutional and other facilities within a period of 3 years from the date of execution of Lease Deed and shall complete the project in phases within 5 years. However, the residential and commercial development/construction may be completed in phases within 7 years.

Further more, the lessee has to develop residential and commercial component in the project in proportion to area earmarked for recreational uses.

The ‘Completion Certificate’ will be issued by the NOIDA on the completion of the project or part thereof in phases and on the submission of the necessary documents required for certifying the completion of the project or part thereof.

The lessee shall execute an Indemnity bond Indemnifying the NOIDA against all disputes arising out of non-completion of the project.

Without obtaining the completion certificate the lessee shall have the right to sub-divide the allotted plot into suitable smaller plo