CBI files 3 cases against multiple companies over alleged irregularities in Noida Sports City Project

Central Bureau of Investigation registered three FIRs on Friday against various companies and their directors in connection with irregularities in the allotment, development, and sanctioning of Noida Sport City Project between 2011 and 2014, ANI reported. Breaches of agreed conditions are suspected to have caused ₹9,000 crore in financial losses to the state exchequer.

The investigating agency said that three cases have been registered “against various companies and their directors along with Unknown Public Servants on the directions of the High Court at Allahabad and has conducted searches. The cases pertain to allegations of irregularities in the allotment, development, and sanctioning of Sports City projects between 2011 and 2014.”

Within the four-year period timeframe, it is alleged that Noida Sport City Project aimed to develop world-class sport facilities. Covering residential and commercial areas, this construction project was allocated for sector 78, 79 and 150 of Noida.

Allahabad High Court ruling

Following February 24 Allahabad High Court ruling, these cases were registered after the court ordered a comprehensive probe by the CBI and the Enforcement Directorate (ED). The role of developers, consortium members, and Noida authority officials is under scanner, all of whom are alleged to have conspired to misappropriate homebuyers’ funds and defraud the state exchequer.

A division bench comprising justices Mahesh Chandra Tripathi and Prashant Kumar held lead developers and consortium members accountable for violations of the contract. Violations in three of four Sports City projects in Noida relate to land use, financial mismanagement, and failure to develop the promised sports infrastructure.

As per the report, the agreed upon conditions of the project were allegedly breached multiple times by the concerned authorities that is suspected to have caused significant financial losses amounting to ₹9,000 crore. Furthermore, a CAG report pointed out the irregularities in the Noida Sport City Project but no remedial measures were taken, the CBI said. Hence, CBI launched an investigation into the case and raided multiple locations in Delhi and Noida to recover evidence.

The investigating agency in a statement said, "In this connection, CBI conducted searches at several locations in Delhi and Noida leading to recovery of incriminating documents, digital evidence, etc. The investigation is currently underway."

(This is a developing story, check back for latest updates)