CAG finds Greater Noida authority failed to restrict farmhouses on protected Hindon floodplain

Economic Times

2 days ago

The Comptroller and Auditor General criticised Greater Noida Industrial Development Authority. GNIDA permitted construction on the Hindon floodplain. This area should have been conserved. GNIDA enabled farmhouse development in prohibited zones. This led to environmental and regulatory violations. Schemes violated conservation rules. GNIDA launched schemes in 2011 and 2015. These actions ignored government and tribunal directives.
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Schemes violated conservation regulations
Ignored government and tribunal directives
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Land allotment and financial irregularities
Encroachments under Krishi scheme
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Audit conclusions
The Greater Noida Industrial Development Authority (GNIDA) has come under sharp criticism from the Comptroller and Auditor General (CAG) for allowing construction on the Hindon floodplain — a zone meant for natural conservation, reported by TOI. Instead of protecting these ecologically sensitive areas, GNIDA enabled the development of farmhouse plots in prohibited zones, leading to major environmental and regulatory violations, according to a CAG audit.GNIDA launched the 'Institutional Farmhouses' scheme in 2011 and the 'Krishi Farmhouses' scheme in 2015, both in violation of existing norms. Though initially intended for temporary structures, the schemes led to the construction of permanent houses, shops, and polluting workshops. In Haibatpur village, farmhouses were permitted as close as 130 metres from the Hindon riverbank.The audit referenced the Regional Plan 2021 , which classifies the Hindon floodplain as a natural conservation zone . Only restricted activities such as farming and afforestation are permitted, with a construction cap of 0.5%. Construction or habitation on riverbanks, riverbeds, or floodplains is strictly prohibited.GNIDA's actions disregarded several regulations, including a 2010 state government order directing development authorities to designate floodplain areas as green zones in Master Plans and ban construction. A 2013 interim order from the National Green Tribunal imposed a construction ban on Yamuna and Hindon floodplains, reinforced in 2016 by a central government notification prohibiting construction along the Ganga and its active floodplains.Despite these orders, GNIDA labelled Hindon floodplain land as "agricultural use" in its Master Plan 2021 and introduced the farmhouse schemes.Under the Institutional Farmhouses scheme, GNIDA allotted three large plots totalling 13.5 lakh square metres. These went to an SDS Infratech-led consortium (FH-1), Gaursons India (FH-2), and Gaursons Hi-tech Infrastructure (FH-3). As of April 2021, the total dues had reached Rs 598 crore.Although FH-1 was cancelled in 2017 for non-payment, the matter remains in court. FH-2 and FH-3 were not cancelled despite outstanding dues. FH-3 was later downsized due to GNIDA's lack of possession over some parts of the land.The audit also found that GNIDA allotted plots without confirming clear land ownership. At the time of allotment, portions of FH-1 were already under development, and parts of FH-2 and FH-3 were either encroached, under litigation, or not yet acquired. Despite this, GNIDA allowed developers to mortgage the land — even when dues remained unpaid — a practice criticised by the Supreme Court in the Amrapali case.FH-2 was mortgaged with the condition that banks would pay Rs 107 crore in dues, which never materialised. Layout approvals revealed 91 farmhouses across FH-2 and FH-3, with permanent construction on over 1.5 lakh square metres of floodplain.The Krishi Farmhouses scheme , launched in May 2015, targeted farmers whose land had been acquired. Nine plots totalling 84,047 square metres were allotted in Haibatpur village. These plots were between 130 to 553 metres from the Hindon riverbank. Satellite imagery and inspections in 2019 revealed dense encroachments, including permanent homes and commercial shops.GNIDA acknowledged the encroachments in 2015 and 2016 but failed to take corrective action. In 2019, the board opted to cancel the scheme and refund allottees with 4% interest. By 2021, eight refunds had been processed; one remained pending in 2022.By April 2021, total dues under both schemes stood at Rs 646 crore. Despite large-scale defaults and repeated violations, most developers faced no serious action. Construction on many plots remained incomplete even after a decade.The audit concluded that GNIDA had failed to fulfil its core responsibility of protecting green buffers and floodplain zones, instead facilitating their conversion into unauthorised farmhouse developments while allowing significant financial and regulatory lapses to persist.(With inputs from TOI)