
Allahabad HC quashes Greater Noida order to cancel plots, cites possession delay and lack of civic infra
One order was related to a large IT/ITES project in Tech Zone II and the other to a group housing project in Sector 10.
The twin verdicts, delivered earlier this month by Justice Prakash Padia, restored the allotments and brought relief to the realtors, Elevator Properties and Kinetic Buildtech.
They had challenged GNIDA's actions in court, alleging that its own defaults stalled their projects.
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In the first case, on June 16, 2023, GNIDA had cancelled the allotment, citing non-utilisation of land, non-obtaining of a completion certificate and failure to deposit due payments.
The 25-acre IT/ITES plot was originally allotted in Oct 2007 to a consortium led by Anant Raj Industries Ltd.
It was later transferred to its subsidiary, Elevator Properties, through a lease deed in Aug 2010. Despite over a decade passing, no construction took place.
Against the cancellation, Elevator Properties filed a petition in the HC in 2024, arguing that the Authority failed to complete external development works, such as roads, drainage and services, making the land commercially unusable, despite the developer paying the entire premium at lease execution.
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A key legal issue was the amendment to Section 7 of the Uttar Pradesh Industrial Area Development Act in 2022, allowing the Authority to cancel non-utilised plots only by first issuing notice at least three months before Dec 31, 2022, directing the allottee to complete construction by that date.
If the plot remained unused, it would stand automatically cancelled on Dec 31, 2022. GNIDA, however, issued its notice only on Jan 3, 2023, after the cut-off date of Sept 30, 2022 to issue such notices.
In his order, Justice Prakash Padia ruled that after missing the statutory deadline, GNIDA lost legal power to cancel under this amended provision. The court called the cancellation "wholly without jurisdiction" and "perverse," restoring the allotment and entitling Elevator Properties to consequential benefits.
The court also noted GNIDA's cancellation had earlier been upheld by an order dated Nov 23, 2023, passed by the principal secretary, industrial development department, which the court has now set aside.
In the second case, the court quashed GNIDA's 2017 cancellation of a plot measuring five acres, allotted to Kinetic Buildtech in May 2014 under a group housing scheme.
The plot was allotted in 2014 and the petition against the cancellation was filed in this case in May 2023.
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