SC asks Noida authority to pay Rs 100 crore to land owner in six weeks

NOIDA: The Supreme Court has directed Noida Authority to pay a compensation of Rs 100 crore to a man who had bought two plots totalling 7,400 sq m in Chhalera Bangar village in 1997. The authority was asked to pay the amount in six weeks. Reddy Veerana, the petitioner, had purchased the two plots from a villager for Rs 1 crore.

He alleged that soon after the land was handed over to him, officials of the authority started “troubling” him over the possession. Veerana filed a civil suit in a trial court, seeking a permanent inunction so that the authority “does not interfere”.

The authority had argued in court that the plots Veerana had bought were in the middle of a commercial development hub and so the possession by him was illegal. The court ruled in favour of Veerana and restrained the authority from taking possession of the land.

After a trial court order restrained Noida Authority from taking possession of two Noida plots belonging to Reddy Veerana, the petitioner, the authority challenged it before the district judge, but the plea was dismissed.

Despite the decree of permanent injunction, the authority floated a tender for the development of a large land parcel that included the two plots. The land was allotted to a developer and a notification was also issued by the authority the next year. The entire land was acquired in 2006. Veerana challenged the notification in the Allahabad high court. In keeping with an interim order, a revenue inspector visited the site in 2008 but failed to demarcate Veerana’s plots as the entire area had been developed.

The high court then directed the land acquisition officer to determine a compensation within a month.

In 2010, the authority moved the Supreme Court through a special leave to appeal, which was subsequently converted into a civil appeal in 2013. The apex court put a stay on the high court order and ordered a fresh calculation of the compensation amount, which turned out to be Rs 23. 9 lakh. The authority’s appeal was dismissed in 2015.

Veerana approached the apex court with a contempt petition when the district administration did not disburse the amount till 2018. A year later, he was asked to approach the Allahabad high court.

Two years later, the high court asked the authority to pay compensation in keeping with the circle rate of Sector 18 in April 2004 (Rs 1. 1 lakh per sq m), but after deducting 50% as development charges. This time, both Veerana and the authority approached the apex court over the compensation amount. The court directed the authority to pay Veerana a compensation at the rate of Rs 1. 1 lakh per sq m, but without any deductions. Along with interest, the total amount that Veerana is supposed to get now is Rs 100 crore.