AG advises Noida Authority to allocate dispute-free land

The state's principal accountant general (AG) has called on the Noida Authority to ensure that allocated plots are free of disputes, pointing to the additional Rs 295 crore pay-out for the land on which the DLF Mall of India now stands as an example of the consequences of improper land acquisition. The AG questioned how the land was allotted when it had not been properly acquired and asked if any action had been taken against the officials responsible for the error.

The AG emphasized that as a matter of prudence, the Noida Authority should guarantee that plots allocated to allottees are free from all encumbrances, encroachments, and disputes. This would enable them to construct and utilize projects in accordance with prescribed terms and conditions. Allotment without ensuring this gives rise to disputes with allottees later, potentially resulting in construction delays, non-achievement of allotment objectives, and adverse financial effects for the Noida Authority.

The issue came to light in May 2022 when the Supreme Court ordered the Noida Authority to pay compensation to Bengaluru-based realtor Reddy Veerana at the rate of Rs 1.1 lakh per square meter, plus additional amounts for two plots of land measuring 7,400 sqm he had purchased at Chhalera Bangar in 1997. Veerana's land was part of a 54,320 sqm land parcel that Noida allotted in 2004 for the Mall of India. The Noida Authority ultimately paid Veerana Rs 295 crore on December 1, 2022, to ensure timely implementation of the court order.

Following this, the Noida Authority sent a demand notice to DLF, asking it to deposit Rs 234 crore after adjustments. DLF contested the notice in the Supreme Court and subsequently filed a petition in Allahabad High Court, where the case is still being heard. The AG recommended that the Authority should allocate plots only after acquisition and ensure they are encumbrance-free.

Noida Authority officials responded to the AG's concerns, stating that the land records department would submit a report outlining the factual position to the accountant general. The report is expected to provide clarity on the current situation and guide the Noida Authority in future land allocation decisions.

The ongoing legal battles and financial consequences underscore the importance of transparent land acquisition processes and effective land management. Ensuring that land is properly acquired and free of disputes will protect the interests of both developers and the Noida Authority. In addition, it will help build trust among all parties involved in land transactions, fostering a more stable environment for development projects.

In conclusion, the AG's advice to the Noida Authority highlights the critical need to ensure land allocated for development is free of disputes to prevent costly legal battles and financial repercussions. Adhering to proper land acquisition procedures and maintaining transparency are essential to avoid similar issues in the future, creating a more stable environment for development projects and safeguarding the interests of all stakeholders.

Next (Ahmedabad based builder files FIR against 'conman' Kiran Pate)

AG advises Noida Authority to allocate dispute-free land

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