Allahabad High Court Reverses Cancellation, Restores Valuable Farmhouse Plot to Developer
In a significant legal development, the Allahabad High Court has restored a farmhouse plot valued at over Rs 100 crore to SDS Infratech, overturning a cancellation order issued nine years ago with immediate effect. This ruling marks a pivotal moment in a long-standing dispute between the developer and the Greater Noida Industrial Development Authority (GNIDA).
Court Bench Issues Detailed Ruling on Land Allotment Dispute
A division bench comprising Justices Mahesh Chandra Tripathi and Kunal Ravi Singh delivered the judgment on Thursday, reinstating the 3.8 lakh square meter plot located in Greater Noida to SDS Infratech. The court quashed GNIDA's order from August 17, 2017, which had cancelled the original allotment made on April 25, 2011. Additionally, the bench directed GNIDA to make a decision on the developer's request for zero-period relief within a strict timeframe of four months.
Background of the Institutional Farmhouse Scheme and Legal Battle
The conflict originated from GNIDA's institutional farmhouse scheme launched in 2011, encompassing land in villages such as Etwa, Patwari, Bisrakh, and Haibatpur. A consortium led by SDS Infratech was allocated this land parcel for Rs 103 crore, with an initial deposit of Rs 20.6 crore—approximately 20% of the total premium. According to the scheme brochure, this payment obligated the Authority to issue a checklist for executing the lease deed.
GNIDA proceeded to cancel the allotment after the developer failed to pay subsequent instalments, labeling SDS Infratech as a chronic defaulter. By April 30, 2017, the Authority claimed that outstanding dues, including accrued interest, had escalated to over Rs 204 crore. GNIDA argued that payment responsibilities were independent under the brochure terms and noted that only about 6,831 square meters of the land fell within Patwari village. The Authority maintained that ongoing acquisition-related litigation did not justify withholding payments.
Developer's Defense and Zero-Period Relief Argument
In response, SDS Infratech contended that land acquisition in Patwari village was invalidated by the High Court on July 19, 2011, and remained under legal scrutiny for several years. This period included key rulings such as the full bench decision in Gajraj on October 21, 2011, and the Supreme Court's judgment in Savitri Devi on May 14, 2015, with related proceedings continuing until October 2016.
The developer sought zero-period relief from July 19, 2011, until the issuance of the checklist, arguing that litigation uncertainties over title and possession persisted at least until October 4, 2016. SDS Infratech emphasized that the lease deed was never executed, and possession was not transferred, asserting that instalment liabilities could not be enforced without reciprocal performance from GNIDA.
Previous Legal Petitions and Court Interventions
SDS Infratech had previously filed a writ petition in 2013 challenging GNIDA's demand for 64.7% additional compensation and approached the High Court again in 2017 against a demand of Rs 177 crore. On May 26, 2017, the court instructed GNIDA to decide on the zero-period claim through a reasoned order and temporarily suspended the demand. Despite this directive, GNIDA proceeded to cancel the allotment later in 2017. The High Court subsequently granted interim protection to the developer, conditional upon a deposit of Rs 5 crore.
Final Court Directions and Implications for Future Proceedings
In its conclusive directives, the court ordered GNIDA to present the zero-period claim before its standing committee within four weeks of receiving a certified copy of the judgment. This ruling not only resolves a protracted legal dispute but also sets a precedent for handling similar cases involving land allotments and developer-authority conflicts in the region.
