Noida plot row: HC seeks decision in six months

A legal dispute over the alleged subdivision and transfer of a portion of a prime commercial plot in Noida has reached the Allahabad High Court, which has directed authorities to decide a pending statutory revision within six months.

The matter relates to Plot No C-001/A in Sector-16B, originally allotted under NOIDA’s 2010 commercial builders scheme for the development of the “Delhi One” project.

The court’s direction came after a petitioner approached it, citing inaction by the revisional authority on complaints challenging the legality of certain transactions linked to the plot.

According to details placed before the court, the plot measuring about 40,056.72 square metres was allotted to a consortium comprising Vistar Construction Pvt. Ltd., Advance eGraphics Pvt. Ltd., 3C Universal Developers Pvt. Ltd., and Jaksons Limited. The consortium later formed a special purpose vehicle, Boulevard Project Private Limited (BPPL), to develop the commercial project.

The dispute centres on allegations that a portion of the plot, measuring around 3,352 square metres, was subdivided and sub-leased in violation of the terms of the original allotment and applicable rules.

As per the petition, BPPL sought permission in December 2016 to subdivide this portion and execute a sublease in favour of Wise Zone Builders Private Limited. At that time, the entity was stated to be a subsidiary linked to the project.

The petition further states that NOIDA executed a tripartite sub-lease deed on April 28, 2017, which was registered a day later. On the same date, it is alleged that 100 per cent shareholding of Wise Zone Builders Private Limited was acquired by a Max Group entity, Max Estates Limited, through a share purchase transaction.

The petitioner has alleged that the sequence of actions, sub-division, sub-lease, and subsequent transfer of ownership was carried out in contravention of the scheme conditions and lease deed provisions.

The plea seeks a declaration that these actions are illegal, null, and void. The matter has also drawn the attention of Government authorities.

 According to the information placed on record, the Uttar Pradesh Government had ordered an investigation into the transactions through the Economic Offences Wing (EOW), Meerut, on March 16, 2020.

Aggrieved by the alleged violations, the petitioner filed a statutory revision under Section 41(3) of the U.P. Urban Planning and Development Act, 1973, read with Section 12 of the U.P. Industrial Area Development Act, 1976. The revision challenges permissions and orders related to the sub-division and sub-lease, and seeks to set aside changes in the project’s constitution approved by Noida.

When the revision was not decided, the petitioner approached the Allahabad High Court, Lucknow Bench, seeking directions for its early disposal.

The High Court, while disposing of the writ petition, observed that the revisional authority should consider and decide the matter in accordance with law at the earliest. It further indicated that the process should preferably be completed within six months.

The court also noted that if the revision is not decided within a reasonable period, the petitioner would be free to approach the court again.