The Lucknow bench of the Allahabad High Court has ordered the Uttar Pradesh state government to deposit Rs 1.20 crore along with 8 percent annual interest into a court-held bank account following a dispute over unpaid land acquired from a temple adjacent to the Ram Janmabhoomi complex in Ayodhya.
A division bench comprising Justice Shekhar B Saraf and Justice Abhdesh Kumar Chaudhary issued the order on August 11 in response to a petition filed by Shri Thakur Ram Janki Sugrivji Virajman Mandir. The court directed state authorities to deposit the unpaid sum into an interest-bearing fixed deposit at a nationalised bank under the name of the local civil court within four weeks. Disbursement of the funds will remain contingent on the outcome of a pending civil suit regarding the property’s ownership.
Court Rebukes Hasty Takeover
The bench sharply criticized the conduct of state officials for taking immediate possession of the 1,512-square-metre plot at Sugriv Kila in late 2023 without fulfilling promised financial obligations. The judges noted that authorities appeared to take over the property in haste before abruptly shifting their stance to claim the parcel was government-owned Nazul land exempt from compensation.
Describing the state’s actions as neither fair, proper, nor reasonable, the High Court emphasized that it was not determining the title dispute itself. Clarifying that ownership questions must be decided through a complete trial, the court directed the competent civil court to expedite the suit filed in 2024 and resolve all legal and title matters preferably within one year.
Financial Terms and Revenue History
The dispute stems from a registered sale deed executed on December 22, 2023, for Khasra No. 246, Khata No. 44/2, involving a total agreed consideration of Rs 1,38,44,559. While the government paid Rs 17,48,559 to cover existing structures on the property, the principal land valuation of Rs 1,20,96,000 remained outstanding.
According to the temple trust, officials had assured that the land cost would be transferred via RTGS within 15 days of the agreement. Relying on those assurances, temple management handed over physical possession immediately. However, the state subsequently withheld payment and initiated a civil lawsuit seeking cancellation of the sale deed, asserting that the land was government property and that the temple lacked legal authority to sell it. In contrast, the petitioner maintains that its title over the land has been continuously documented through successive revenue settlements dating back to 1858.
Under the High Court’s directives, the mandatory 8 percent annual interest on the Rs 1.20 crore sum will be calculated starting 15 days after the execution of the December 2023 sale deed up to the date of deposit.

