The embattled business group defaulted on payments of over Rs 500 crore, he added.
The Jaypee group
had sub-leased plots to 11 builders on the allocated land and separately had taken around Rs 2,000 crore from homebuyers in 10 projects but not delivered it, he said.
"So, in light of the violation of lease deeds, it was decided during the board meeting that the land allotment be cancelled," Singh said.
However, the authority said modalities are being worked out to safeguard the interests of third parties and homebuyers who had invested in projects on this land parcel.