Game Over? CBI moves against 3 Noida Sports City builders for financial irregularities

Noida, March 24, 2025: The Central Bureau of Investigation (CBI) has just joined the game in Noida, filing first information reports (FIR) against developers of three Sports City projects in Noida after an Allahabad High Court directive. These projects are: Xanadu Estate, Lotus Greens Construction and Logix Infra Developers, and the grave charge they face is misappropriation of money raised from those who wanted to buy homes in these projects. Noida authority officials also figure in the CBI’s sights: they are accused in all three cases.

Xanadu is the lead developer of projects in Noida’s sectors 78 and 79; Lotus Green leads the development of one project in Sector 150. The promoters of both projects are the same—Nirmal Singh, Vidur Bhardwaj, and Surpreet Singh Suri. An FIR was also registered against the promoters of Logix—Shakti Nath, Meena Nath, and Vikram Nath—developing another Sports City project in Sector 150.

The cases were registered in Delhi on March 17 under sections related to criminal conspiracy, forgery, criminal breach of trust and the Prevention of Corruption Act, 1988. Xanadu and Logix projects are currently under insolvency proceedings. These have been called a “deliberate strategy to avoid obligations” by the high court.

Late last month, a bench of the Allahabad high Court comprising justices Mahesh Chandra Tripathi and Prashant Kumar ordered a CBI and Enforcement Directorate inquiry, directing investigations against builders, consortium members, and Noida Authority officials for allegedly siphoning off homebuyers’ money.

The HC bench, 10 separate judgments covering the three projects, examining various violations — from land use irregularities to financial misconduct and non-completion of promised sports facilities.

“This court has no other recourse but to refer the investigation to CBI. CBI will also investigate the role of all the persons involved in this scam. We hope and trust that the investigation would be carried out and completed expeditiously,” the court was quoted by a prominent daily as saying.

The developers pursued commercial development for profit while ignoring the sports infrastructure on more than two-thirds of the project site despite receiving benefits and concessions from Noida Authority, the court said.

The judgments came after hearings on pleas filed by some of the developers and consortium members, seeking the handover of encumbrance-free land, waiving of lease rent and penalties, cancellation of demand notices, and proper execution of the Sports City development plan. The court dismissed their claims, pointing out that since they had failed to develop sports infrastructure in keeping with the original plan, insolvency could not be used as a shield to escape the liabilities.

A Comptroller and Auditor General (CAG) audit in 2021 indicated major financial irregularities in the Sports City allotments.The audit revealed major financial irregularities in allotments, causing in a INR 9,000-crore loss to Noida Authority and the Uttar Pradesh government. The audit highlighted underpriced land, unauthorised ownership transfers, unpaid lease premiums, and improper issuance of occupancy certificates by Noida Authority.

The court observed that even after the CAG report was tabled, neither Noida Authority nor UP government took no action, only sending notices to the developers demanding payment of dues. These notices were not responded to.

“This case can be a case study of the dirty nexus between builders and Noida Authority officials, where benefits after benefits were granted to the builders, completely contrary to the scheme, memorandum of agreement (MoA), and the implementation of the Sports City scheme,” the court said in its judgment on a case filed by Lotus Green Constructions.

Noida Authority had proposed the Sports City projects in August 2004. Between 2011 and 2016, four Sports City projects were launched across 798 acres, including three golf courses, a cricket stadium, and other world-class sports facilities.