YEIDA’s Legal Team Under Scrutiny

The Yamuna Expressway Industrial Development Authority (YEIDA) narrowly avoided facing contempt of court charges after almost issuing land cancellation orders to developers Supertech and Sunworld due to mounting dues. Unaware of high court stays on coercive action against these developers, YEIDA was on the brink of a legal blunder.The situation has prompted YEIDA to initiate a departmental inquiry against its legal officer and officials in the group housing department for providing misleading information regarding the ongoing high court cases involving Supertech and Sunworld.

At a YEIDA board meeting on June 26, the housing department proposed partially cancelling land allotments for the two realtors in Sector 22D along the Yamuna Expressway. The department asserted that there were no legal disputes, and this assertion went unchallenged by the legal team. Consequently, the board approved the proposal, prioritising the interests of homebuyers. YEIDA intended to reclaim land where residential projects had not been initiated.However, after the realtors learned of the impending action, their representatives informed YEIDA officials about the high court stays. Arun Vir Singh, the YEIDA CEO, consulted the legal team, which advised against issuing the land cancellation notices. Singh stated, “Although cases were pending at the Allahabad High Court, a proposal was put forth at the board meeting to partially cancel the land allotments of Supertech and Sunworld. This was based on incorrect facts. The negligence lies with the legal and housing department. It is a serious matter, which warrants departmental action against officials concerned.”

Supertech has two lawsuits pending in the high court. The first, filed in 2021, challenges a letter issued by YEIDA over mounting dues and seeks waivers under a zero period. The second petition, submitted a year later, contests the amount Supertech is required to pay for additional compensation to farmers and appeals for a revision of this amount. The high court has directed YEIDA to refrain from taking any coercive action against Supertech until a decision is reached.Sunworld also filed a case against YEIDA in 2020, seeking recalculation of dues and alleging that the Authority allotted it only 67% of the promised land, distributed in patches.An official noted, “Although the board had approved the decision to cancel land allotments, YEIDA did not issue any notice. Had it come out with an order, it could have led to contempt proceedings against the Authority.”Supertech Township and Sunworld Infrastructure were each allotted 100 acres in Sector 22D in 2011. Supertech owes INR 677 crore to the Authority, while Sunworld’s dues stand at INR 816 crore. Both companies have not accepted the state government’s rehabilitation package for stalled projects despite numerous reminders, which could have provided Supertech and Sunworld relief of INR 128 crore and INR 156 crore, respectively.The incomplete projects have affected approximately 3,200 homebuyers in Supertech and around 1,400 in Sunworld. The oversight and subsequent near-miss highlight the critical need for accurate legal guidance and coordination within YEIDA to prevent future missteps and ensure the timely completion of these housing projects.