Lucknow Development Authority to take over stalled Ansal township
The Uttar Pradesh cabinet has approved the Lucknow Development Authority's takeover of Ansal Properties' stalled hi-tech township, potentially aiding around 5,000 homebuyers. The authority will complete pending infrastructure works at an estimated cost of Rs 2,216.91 crore, with the proposal now goi
The Uttar Pradesh cabinet has cleared a proposal for the Lucknow Development Authority (LDA) to take over and complete Ansal Properties and Infrastructure Ltd's stalled hi-tech township in Lucknow, potentially delivering plots or homes to around 5,000 distressed homebuyers.
The proposal will now be placed before the National Company Law Tribunal (NCLT), which is overseeing insolvency proceedings against the company. LDA vice-chairman Prathamesh Kumar said valid allottees and buyers with executed sale deeds would be handed over plots or buildings in accordance with applicable rules.
Officials said LDA will also complete long-pending infrastructure works across the township. Nearly 50 km of internal roads remain to be built, while water supply, sewerage, stormwater drainage, parks, tube wells, a sewage treatment plant and power infrastructure are incomplete. LDA has estimated the cost of finishing pending development at Rs 2,216.91 crore, including Rs 453.10 crore for basic amenities in pockets 1 to 4, Rs 1,126.52 crore for pocket 5, Rs 114.28 crore for remaining work on a railway overbridge and Rs 523 crore for a power substation.
The project's maximum potential liability has been assessed at around Rs 2,912 crore. Kumar said the actual liability would be determined through the insolvency process involving the interim resolution professional (IRP). The state government is expected to provide seed capital to LDA, which would be repaid through revenue generated from the sale of new plots and other project income.
According to findings cited by officials, around 164 hectares of Gram Samaj and municipal corporation land had been sold. Ansal had also mortgaged 3,489 plots with LDA as a guarantee for development work but allegedly sold 2,747 of them. LDA has lodged an FIR against the company.
The township was approved under the Hi-Tech Township Policy in 2005 over 1,765 acres. Its area was later expanded to 3,530 acres and then 6,465 acres, with the detailed project report for the enlarged area approved in 2015. LDA had filed a Rs 4,490 crore claim before the IRP and later moved the National Company Law Appellate Tribunal (NCLAT), which recognised the authority as a necessary party and restricted the resolution process to the Lucknow project. In April 2026, the Supreme Court dismissed an appeal by IL&FS and directed the party to approach the NCLT.
