The Adityanath Yogi-led government has sought settlement of dues worth Rs 778 crore from Asset Reconstruction Company India (ARCIL) on Industrial Plot A-1 located in Surajpur Industrial Area of Ghaziabad. The total size of this plot is 82.56 hectares (204 acres) with 19.65 percent cover area.

In a letter to ARCIL, the state government has also demanded that that the Uttar Pradesh State Industrial Development Authority (UPSIDA) be given priority in the sale of the concerned plot by allowing it to take part in the bidding process. Hence, the dues of the authority should be cleared and it should be given the option to purchase the plot.

Further, the IIDC has expressed apprehension that DRT-2, Mumbai, is finalizing the sale in favour of Shakuntalam Landcraft for Rs 359 crore, which is much lower than UPSIDA’s offer price of Rs 390.50 crore, at 10 percent above the reserve price.

To put things in context, the property belonged to UPSIDA itself, which was allotted to DCM Toyota on July 06, 1982. In April, 1989, permission was granted to mortgage the plot in favor of ICICI Bank. Post the change from DCM Toyota to Daewoo Motors India, the latter has not yet transferred the levy amount collected by it to UPSIDC. Next, DRT, Mumbai sold this land to Penn India Motors. In 2010, the authority gave consent for the transfer with payment of transfer levy of Rs 8.36 crore and pre-due amount of Rs 22.24 crore. Pen India deposited 25 percent of the transfer levy and did not make any further payment of dues to UPSIDA.

UPSIDA has apprised the DRT Court and ARCIL in writing about the situation and the pending dues.