The Supreme Court on Wednesday said the Special Investigation Team (SIT) probing allegations of inflated compensation payouts for acquired land in NOIDA must also examine former chief executive officers and other top functionaries who helmed the authority over the last 10 to 15 years.
A bench of Chief Justice Surya Kant and Justices Ujjal Bhuyan and N Kotiswar Singh extended the SIT’s time frame by two months to complete the investigation. It took on record the latest status report submitted by the SIT, which had asked for three months.
The bench made it clear the inquiry is directed at alleged “connivance” and “collusion” by officials and not aimed at penalising farmers who were paid more than their entitlement.
Senior advocate Siddharth Dave, appearing for one of the farmers who received higher compensation, told the court that the SIT had issued notices summoning him for recording his statement. He urged the bench to protect farmers, saying the situation was “not their fault”.
The bench reiterated that it has already clarified that the investigation “is not to harass the farmers” but to identify collusion between beneficiaries and NOIDA officials that resulted in inflated payouts. It also expressly stated that no coercive action will be taken against farmers.
Solicitor General Tushar Mehta, appearing for NOIDA, informed the court he intended to file an affidavit placing the authority’s stand on record.
On August 13, the Supreme Court had ordered an SIT investigation into allegations that NOIDA officials colluded with builders to award compensation to landowners far beyond what they were legally entitled to. The court had accepted the initial SIT’s findings, noting prima facie substance in the claims, and directed that its recommendations be considered by the Uttar Pradesh government, including a suggestion to convert NOIDA into a “metropolitan council”.
Taking serious note of those findings, the Supreme Court constituted a new SIT of three senior IPS officers to scrutinise bank accounts, assets, and other financial trails of officials and beneficiaries with assistance from forensic auditors and economic offences experts.
The court directed the Director General of Police, Uttar Pradesh, to constitute the SIT and ordered immediate preliminary enquiries into issues flagged by the earlier probe.
On January 23, the court outlined four specific questions for the SIT:
- Whether compensation paid exceeded what was permissible under judicial directions.
- Which officials authorised or facilitated such payments.
- Whether collusion existed between officials and beneficiaries.
- Whether NOIDA’s functioning lacked transparency and fairness in serving public interest.
The court added that, upon finding prima facie evidence of a cognisable offence, the SIT must register a case and proceed according to law.
To support the investigation and improve governance, the Supreme Court issued multiple directions:
- The Uttar Pradesh chief secretary must appoint a chief vigilance officer (preferably IPS or deputed from CAG) within weeks.
- A citizen advisory board for NOIDA must be constituted.
- No project should proceed in NOIDA without environmental impact assessment and clearance from the Supreme Court’s green bench.
- Where the SIT needs prior sanction for prosecution under the Prevention of Corruption Act, competent authorities must grant it within two weeks.
The January 23 decision to appoint a court-mandated SIT came after the bench expressed dissatisfaction with a state-appointed committee that was probing allegations of illegal compensation. The matter had arisen during hearings of anticipatory bail pleas filed by the authority’s legal advisor and a law officer, both accused of enabling the release of substantial wrongful compensation to certain landowners.
The investigation continues, with the SIT now tasked to widen the scope to include NOIDA’s top leadership across the past decade and beyond.
