The Supreme Court on Tuesday set aside a 2020 judgment of the Punjab and Haryana High Court that had directed the Central Bureau of Investigation (CBI) to probe the construction of Ambience Mall and adjoining commercial structures on land in Gurugram originally licensed for a group housing project. The apex court ruled that the high court’s direction for a criminal investigation was “unsustainable in law”, effectively halting the CBI probe.
A bench of Justices J B Pardiwala and Sandeep Mehta, however, clarified that other proceedings before the high court related to the contentious land use and statutory violations could continue. Additionally, the court stayed a separate environmental compensation order passed by the National Green Tribunal (NGT), which had imposed a ₹10 crore penalty on the developer for alleged construction in green areas, but allowed for revival of the NGT case depending on the outcome of the Supreme Court ruling.
The dispute concerns approximately 19 acres of land in Gurugram’s Nathupur village, situated along the Delhi-Jaipur National Highway. Originally licensed in the early 1990s for group housing, a significant portion of the land was subsequently de-licensed and repurposed for commercial development. This move led to widespread opposition from residents and apartment buyers, who alleged misrepresentation and diversion of land intended for open spaces and community use.
In 2015, a public interest litigation was filed in the Punjab and Haryana High Court, alleging collusion between the builder and state authorities to allow commercial construction in violation of statutory provisions under the Haryana Development and Regulation of Urban Areas Act, 1975.
In its strongly worded July 2020 judgment, the high court had:
- Directed a CBI investigation into the builder-government nexus.
- Quashed the commercial licences granted for Ambience Mall and adjoining properties.
- Held that the reduction of housing project area from 18.98 acres to 7.9 acres was a breach of norms and buyer agreements.
- Found that mandatory layout plans were missing from government records at the licensing stage.
- Observed the entire process was a “fraudulent exercise”, suggesting a prior meeting of minds between officials and the developer.
The court had ordered the CBI to complete the probe within six months, while directing the state government to take further consequential actions.
The apex court bench has now quashed the CBI probe directive, stating that such a criminal investigation initiated through judicial directions lacked legal sustainability. However, the bench clarified that its ruling does not obstruct other legal proceedings pending before the high court, including issues of land use, licencing irregularities, and buyer grievances.
The top court also stayed the NGT’s order directing Ambience group to pay ₹10 crore as environmental compensation for construction within a green area at the Ambience Lagoon Apartment complex. But the Supreme Court added that the NGT could revive its proceedings, depending on the legal implications of the current verdict.
The conflict over the Ambience Mall project has long been a contentious issue between residents of the Ambience Lagoon housing complex and the developer. Residents allege that land earmarked for community amenities and open space was commercially exploited without proper disclosure or consent.
While the CBI probe will not go forward, the Supreme Court’s decision ensures that the broader legal and environmental questions surrounding the project will continue to be scrutinized in courts.
