SC cancels Rs 295 crore land payout order over bizman's fake claim

Time of India

25-07-2025

Noida: The Supreme Court has struck down a Rs 295-crore compensation award to Hyderabad-based businessman Reddy Veeranna, ruling that the payment was secured through fraudulent claims and a deliberate suppression of facts regarding land ownership in Noida.
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A three-judge bench of Justices Surya Kant, Dipankar Datta, and Ujjal Bhuyan set aside both the Allahabad high court's 2021 order and its own 2022 ruling that had granted enhanced compensation to Veeranna for land acquired in Sector 18.
"The impugned order of the High Court dated October 28, 2021 passed in WP (Civil) 2272/2019 [Reddy Veeranna v State of Uttar Pradesh & ors] stands set aside, since fraud has vitiated the entire proceedings.
As a corollary to the above, the judgment and order dated May 5, 2022 in Reddy Veerana (supra) (which too was obtained by playing fraud) is declared to be a nullity and stands recalled in exercise of our inherent powers," the court said in its order.
The case revolves around over five bighas in Chhalera Banger village, jointly purchased in 1997 by Veeranna, Vishnu Vardhan, and T Sudhakar for Rs 1 crore. In 2005, Noida Authority partially acquired this land and later leased it to DLF for Rs 173 crore.
The Mall of India now stands there.
While the three co-owners initially contested the Authority's acquisition together, Veeranna subsequently began claiming exclusive ownership. He obtained a compromise decree from a trial court in 2006 — using a revoked power of attorney — which became the basis for recording his name as the sole owner in govt records.
In 2019, Veeranna approached the high court, seeking enhanced compensation without making his co-owners party to the case.
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The high court awarded him compensation at Rs 1.1 lakh per sqm. The Supreme Court not just upheld the HC order, but also removed a 50% development charge that had been deducted, raising Veeranna's total entitlement to around 360 crore. The payout eventually settled at 295 crore following discussions with the Authority.
The apex court had, however, clarified then that it was not deciding on ownership.
Vardhan, who claimed he was not informed about these proceedings, approached the SC in 2023, filing multiple petitions to challenge Veeranna's claim.
He asserted that Veeranna had repeatedly misled the HC and SC, relying on an invalid decree procured through manipulation and concealment.
In its judgment, the apex court found that Veeranna had consistently identified himself as a joint owner with Vishnu and Sudhakar in earlier proceedings, but abruptly changed his stance in 2019. The bench held that he had suppressed critical facts, including Vishnu's pending civil suit challenging the 2006 decree.
"We have no hesitation to hold that Veeranna Reddy tailored a situation to suit his convenience by not impleading Vishnu as a party with the sole intention of obtaining an order in respect of not only the quantum of compensation payable for acquisition of the subject land but also a declaration as to his entitlement thereto — all, behind Vishnu's back. An attempt by Reddy to steal a march over Vishnu is clearly discernible which, without reference to anything more, does border on fraud," the court observed.
The case has now been remanded in the high court for a fresh hearing of ownership and compensation with all parties present, including Vishnu and Sudhakar. While Veeranna has retained the compensation amount, he has furnished property securities worth Rs 295 crore through his firm Manyata-Pristine. It will remain deposited with the SC.
Given the "magnitude of fraud", the SC has requested the high court chief justice to personally hear the case and conclude it preferably by the end of this year.