Allahabad HC Restores ₹100 Crore Greater Noida Plot Cancelled 9 Years Ago

• High Court revokes GNIDA’s 2017 order cancelling the land allotment

• 3.8 lakh sqm institutional farmhouse plot valued at over ₹100 crore restored

• Court directs authority to review developer’s zero-period claim within four months

Noida: Allahabad High Court has restored a large institutional farmhouse plot in Greater Noida that had been cancelled by the Greater Noida Industrial Development Authority (GNIDA) nearly nine years ago.

The court set aside the 2017 cancellation order and directed the authority to reconsider the developer’s request for “zero-period relief” within four months.

The order was passed by a division bench comprising Justice Mahesh Chandra Tripathi and Justice Kunal Ravi Singh, which partially allowed a writ petition filed by SDS Infratech. The bench quashed GNIDA’s August 17, 2017 order that had cancelled the land allotment originally granted on April 25, 2011.

The dispute dates back to 2011, when GNIDA launched its institutional farmhouse scheme, covering land parcels in villages including Etwa, Patwari, Bisrakh, and Haibatpur in Greater Noida.

Under the scheme, a consortium led by SDS Infratech was allotted a 3.8 lakh square metre plot for about ₹103 crore. The developer deposited approximately ₹20.6 crore, which was around 20% of the total premium.

According to the scheme rules, once the initial payment was made, the authority was required to issue a checklist for executing the lease deed, after which further formalities and possession could proceed.

GNIDA later cancelled the allotment in 2017, stating that the developer had failed to pay subsequent instalments and had become a chronic defaulter.

The authority argued that outstanding dues, including interest, had crossed ₹204 crore by April 30, 2017. GNIDA maintained that payment obligations under the scheme were independent and could not be delayed due to other issues.

Officials also pointed out that only around 6,831 square metres of the allotted land fell within Patwari village, which had land acquisition disputes. According to the authority, this limited litigation could not justify withholding instalment payments for the entire project.

SDS Infratech challenged the cancellation, arguing that the legal status of the land remained uncertain for several years due to acquisition disputes.

The developer pointed to a series of legal developments:

• July 19, 2011: The High Court quashed land acquisition in Patwari village

• October 21, 2011: The full bench ruling in the Gajraj case addressed related issues

• May 14, 2015: The Supreme Court’s Savitri Devi judgment continued scrutiny of the acquisition process

According to the company, the litigation and uncertainty over title and possession continued until October 2016, preventing the authority from executing the lease deed or handing over possession.

Because of this, the developer argued that instalment payments could not be enforced without reciprocal obligations from the authority.

The company requested a “zero period” from July 19, 2011, until the issuance of the lease checklist.

In real estate and development agreements, a zero period refers to a time during which payment obligations are temporarily suspended due to legal disputes, government delays, or other exceptional circumstances affecting project execution.

SDS Infratech also highlighted that it had previously approached the High Court:

• In 2013, challenging GNIDA’s demand for 64.7% additional compensation

• In 2017, against a demand of ₹177 crore

On May 26, 2017, the High Court had already directed GNIDA to decide the zero-period claim through a reasoned order and temporarily stayed the demand.

Despite this direction, the authority went ahead and cancelled the allotment in the same year.

In its latest judgment, the High Court ruled that the cancellation order should be set aside and the developer’s claim for zero-period relief should be reconsidered.

The court directed GNIDA to place the matter before its standing committee within four weeks after receiving a certified copy of the judgment.

The authority must then take a final decision on the developer’s claim within four months.

The ruling is being closely watched by real estate developers and investors in Greater Noida, as it highlights the impact of land acquisition disputes and administrative delays on large property projects.

Legal experts say the judgment reinforces the principle that payment obligations in development agreements must align with the authority’s own obligations, such as providing clear land title and possession.

For developers operating in large land-bank projects across the NCR region, the case also highlights the importance of zero-period relief in situations involving prolonged litigation or regulatory uncertainty.

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