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The Allahabad High Court has ruled in favour of SDS Infratech, directing the Greater Noida Industrial Development Authority to reinstate a 3.8-lakh sq m farmhouse land parcel in Greater Noida that it had cancelled nine years ago, judges said earlier this week. The land, originally allotted in 2011 under an institutional farmhouse scheme for INR 103 crore, was rescinded in 2017 amid disputes over payment defaults and delays attributed to legal hurdles affecting possession and lease deed execution. A division bench held that the cancellation was legally unsound, accepted the developer's claim for a zero-period relief during litigation, and ordered the authority to revisit the matter through its standing committee within four months. The decision effectively restores the plot to SDS Infratech and revives its development rights on the land.
The Allahabad High Court has directed the Greater Noida Industrial Development Authority to restore a high-value farmhouse plot to SDS Infratech, setting aside a cancellation order that had stood for nearly a decade, judicial sources said earlier this week. The ruling provides relief to the developer in a dispute centred on the authority's rescission of an institutional farmhouse land allotment in Greater Noida originally granted in 2011. Advertisement
The plot in question, measuring about 3.8 lakh square metres, had been allotted to an SDS Infratech led consortium under the authority's institutional farmhouse policy for approximately INR 103 crore, with an initial deposit of around 20 per cent paid by the developer. Under the scheme, the authority was required to furnish a checklist to enable lease deed execution, but protracted litigation concerning land acquisition issues in surrounding villages delayed formal possession and the lease deed process.
Despite ongoing legal challenges including key rulings by higher courts between 2011 and 2016 the Greater Noida body proceeded to cancel the allotment in August 2017, citing alleged payment defaults. SDS Infratech contested the cancellation, arguing that without execution of the lease deed and handover of possession, the authority was not justified in rescinding the allotment or enforcing subsequent payment obligations.
In its latest order, a division bench comprising Justices Mahesh Chandra Tripathi and Kunal Ravi Singh held that the developer was entitled to a zero-period relief, effectively pausing the clock on payment obligations during the period it was unable to secure possession due to litigation. The bench quashed the 2017 cancellation and instructed the authority to consider the developer's entitlement to zero-period adjustment and take a fresh decision through its standing committee within four months.
The court's decision reinstates SDS Infratech's rights over the farmhouse land, paving the way for potential development or sale after nearly a decade of uncertainty. Legal experts noted that the ruling reaffirms principles around the execution of allotment terms and the importance of possession before enforcing financial default provisions.
Officials at the Greater Noida authority are expected to comply with the court's directives and revisit the matter in accordance with the timeline specified by the bench, including reassessment of zero-period relief claims. Industry observers say the judgment could have broader implications for long-pending allotment disputes in India's urban fringe markets, where procedural delays often complicate land transactions and development rights.
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