Allahabad High Court Stays UP Government Order on Sunworld City Project
In a significant development for thousands of homebuyers and investors along the Yamuna Expressway belt, the Allahabad High Court has stayed the Uttar Pradesh government’s order dated July 2, 2025, which had granted major reliefs to the stalled Sunworld City Project in YEIDA’s Sector 22D.
The interim order was issued on December 3, 2025 by Justice Arun Kumar while hearing a petition filed by the Yamuna Expressway Industrial Development Authority (YEIDA). The authority had challenged the state government’s directive that offered “zero-period” benefits and asked YEIDA to execute lease deeds in favour of the developer.
Why the Court Intervened
YEIDA argued that the state government’s July 2 order overlooked crucial facts and earlier court directions. According to the authority, the 2012 division bench order had laid down specific compliance conditions for the developer, yet several disputes regarding dues and possession remained unresolved.
The High Court, after reviewing the submissions, observed that the matter required judicial examination. It therefore put the government order on hold, preventing its implementation until further hearings. Notices have been issued to the respondents, and counter-affidavits are to be filed within six weeks.
Background of the Sunworld City Project Dispute
The Sunworld City project has been stuck in litigation and administrative delays for over 14 years.
- 2010: YEIDA allotted approximately 414,000 sq. m. of land to Sunworld City through auction.
- 2011: The allotment was cancelled due to alleged non-payment of dues.
- 2012: The High Court permitted lease execution on specific conditions; Sunworld accepted the terms and received lease rights to around 65 acres.
- 2019–2020: YEIDA accepted surrender of certain land parcels from the developer.
- 2023: The UP government introduced a policy offering relief to stuck real estate projects, including interest waivers upon payment of 25% of dues.
- 2024–2025: Sunworld sought concessions under this policy, after which the state issued the July 2, 2025 relief order that YEIDA has now challenged.
The developer claims that delays occurred because YEIDA did not hand over possession of several parcels of the allotted land, while the authority maintains that the developer had pending dues even on land that had been handed over.
Impact on Homebuyers and the Project
The High Court’s stay effectively pauses the revival plan that the state had approved for Sunworld City. This means:
- The zero-period benefits and interest waivers granted by the state government cannot be applied for now.
- YEIDA is not required to execute fresh lease deeds under the July 2 order.
- Any project revival timeline will be pushed further until the court reaches a final decision.
For homebuyers awaiting clarity, the stay introduces a temporary roadblock, even though it keeps the legal process transparent and under review.
The matter will come up again after the completion of pleadings. The High Court will evaluate:
- Whether the state government exceeded its authority in issuing the July 2 order
- Whether YEIDA’s objections reflect valid breaches of earlier court directions
- Whether Sunworld is eligible for relief under the 2023 policy for stalled real estate projects
The final ruling will determine whether Sunworld City Project can move toward revival with state-approved concessions or whether the project will require fresh compliance and negotiations with YEIDA.
