Institute of Legal and Management Studies

After considering a Special Investigation Team (SIT) report which flagged various shortcomings in the functioning of NOIDA authority, the Supreme Court today passed a significant order directing registration of preliminary enquiries on the issue of exorbitant payment of land acquisition compensation and the alleged collusion between officers and land-owners.

The Court also restrained project development in NOIDA without prior Environmental Impact Assessment and approval of the report by the Court's green bench. A new SIT comprising three IPS officers was ordered to be constituted, replacing the earlier SIT, to carry out a new mandate.

A bench of Justices Surya Kant and Joymalya Bagchi passed the order in a case where it had ordered SIT probe while dealing with the anticipatory bail plea of a NOIDA law officer, following allegations of higher compensation being awarded to some landowners though they were "not entitled".

Briefly put, the SIT report indicated that exorbitant compensation was paid to landowners in 20 cases. Enhanced compensation was paid to landowners in 1198 cases, whereas, Court directions were there for 1167 cases. It further named erring officials of NOIDA with regard to the 20 cases.

On whether there was collusion between beneficiaries and NOIDA officials, the SIT explained that it was necessary to examine bank account details of the officers, their family members, landowners, and assets acquired by officers during the relevant period, as well as documents of over 10 years ago. It further suggested constitution of an independent, specialized agency having expertise in disproportionate asset cases, including financial transaction experts.

With regard to overall functioning of NOIDA, the report mentioned that the current initiatives are commendable, but the authority is more 'reactive' in nature and lacks a pro-active approach. Residents are complaining of delays in responses and inadequate resolution of complaints. The governance structure in NOIDA tends to centralize power within a small group of individuals and decision-making process lacks transparency. Significant decisions are made without adequate public scrutiny or input, there is an absence of regular public reporting on project statuses and land allotment committee policies tend to favor developers.

As such, the SIT recommended formation of a metropolitan corporation in place of the existing entity; appointment of a Chief Vigilance Officer; constitution of a committee monitored by the High Court to codify the distinct powers of NOIDA; regular third-party audits to ensure probity in financial transactions; regular scheduling of public meetings; a citizen advisory board and prioritized environmental impact assessments.

As such, the bench issued the following directions:

(i) Director General of Police, UP shall constitute an SIT comprising 3 police officers of IPS cadre to investigate the issues as identified by the previous SIT, specially issues no. 3 and 4;

(ii) SIT so constituted shall immediately register preliminary enquiries and proceed to inquire into the points highlighted by the previous SIT on issue no.3. In this regard, forensic experts as well as the Economic Offenses Wing of state police shall be associated;

(iii) If the SIT, after preliminary enquiry, finds that a prima facie cognizable offense was committed, it shall register the case and proceed further in accordance with law;

(iv) The outcome of the SIT shall be placed on record by way of a status report by the head of SIT, who shall be an officer not below the rank of Commissioner of Police;

(v) In order to infuse transparency and citizen-centric approach in day-to-day functioning of NOIDA, a copy of the SIT report shall be placed before UP Chief Secretary, who in turn shall place it alongwith appropriate agenda item before the Council of Ministers to take appropriate decision. Chief Secretary shall also post a Chief Vigilance Officer in NOIDA, who should either be from IPS cadre or on deputation from CAG. The Chief Secretary shall also put up the matter before competent authority and ensure that citizen advisory board is constituted with 4 weeks. Further, it is to be ensured that no project is given effect in NOIDA without prior EIA and approval of the report by green bench of the Supreme Court.

(vi) Wherever SIT is required to seek prior sanction to prosecute officers (before registration of FIR under PC Act), competent authority shall accord sanction within 2 weeks of submission of application.

The matter has been kept after 8 weeks, with a direction that the SIT report shall remain in the custody of the Court master.

Earlier, the Court directed the previous SIT to look into the following issues -

(i) whether the quantum of compensation paid to the land owners was higher than they are entitled to in terms of the judgments passed by the courts from time to time;

(ii) if so, who were the officers/officials responsible for such exorbitant payment;

(iii) whether there was any collusion or connivance between the beneficiaries and officers/officials of NOIDA; and

(iv) whether the overall functioning of NOIDA lacks transparency, fairness and commitment to the cause of public interest.

Case Title: VIRENDRA SINGH NAGAR Versus STATE OF UTTAR PRADESH AND ANR., SLP(Crl) No. 1251/2023