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EquityWireSC orders probe into NOIDA-landowner collusion; new project needs court nod

SC orders probe into NOIDA-landowner collusion; new project needs court nod

This story was originally published at 14:04 IST on 13 August 2025
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Informist, Wednesday, Aug. 13, 2025

 

NEW DELHI – The Supreme Court Wednesday ordered a preliminary enquiry into the alleged collusion between New Okhla Industrial Development Authority officials and landowners, wherein a huge amount of compensation was released by the officials in favour of some landowners, who were not entitled for the same.

 

The apex court formed a three-member special investigation team comprising three Indian Police Service officers to probe the irregularities in the land acquisition payouts. The probe team has been tasked with examining financial trails, including bank accounts of officials, their families, and landowners, as well as assets acquired during the period in question, to determine possible collusion.

 

Further, the bench of Justices Surya Kant and Joymalya Bagchi said that no new project in NOIDA should be executed without prior environmental impact assessment clearance and the apex court's nod. 

 

 

The apex court was hearing a case wherein a legal advisor and one law officer serving in NOIDA sought grant of anticipatory bail in a case registered against them and some landowners, at District Gautam Budh Nagar, Uttar Pradesh. The allegations pertain to release of huge amounts of compensation in favour of some landowners who, it was alleged, were not entitled to seek such a higher compensation for their acquired land. 

 

 

In 2023, the top court noted that the legal advisor and law officer's case was not the solitary instance of alleged excess payment of compensation to the land owners; rather, there were numerous instances of such payments, prima facie, for extraneous considerations and on quid pro quo basis. It was consequently desired by the apex court that an independent agency should hold a deeper probe into this. 

 

Consequently, the top court in January formed a special investigation team to see whether the quantum of compensation paid to the land owners was higher than they are entitled to. If the compensation was higher, who were the officials responsible for such exorbitant payment and whether there was any collusion or connivance between the beneficiaries and officials of NOIDA, the apex court said on the remit of the committee. Further, the committee was to see whether the overall functioning of NOIDA lacks transparency, fairness and commitment to the cause of public interest.

 

The committee formed in January gave a report, which indicated that exorbitant compensation was paid to landowners in 20 cases. The report also named erring officials of NOIDA. On the question whether there was collusion between beneficiaries and NOIDA officials, the report explained that it was necessary to examine bank account details of the officers, their family members, landowners, and assets acquired by officers during the relevant period. Further, the report said that the governance structure in NOIDA tends to centralise power within a small group of individuals and decision-making processes lack transparency. The report stated that significant decisions were made without public scrutiny input and there was an absence of regular public reporting on public projects and policies that tend to favor developers. Purusing the report, the apex court formed a new team on Wednesday to investigate the issues as identified by the previous probe team.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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