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Noida: The Allahabad High Court has rejected Jai Prakash Associates Ltd. (JAL) The petition has sought one year’s time to sell a 150-acre land parcel in the ‘core area’ of Sector 25 Special Development Zone (SDZ) to clear land dues of over Rs 3,600 crore. Yamuna Expressway Industrial Development Authority ,yeida,
The court observed that the land allotment was canceled by the authority in February 2020 and said it cannot grant interim protection to JAL to allow it to dispose of or sell any part of the disputed property as it would have to set aside the cancellation of allotment.
A bench of Chief Justice Pritinkar Diwakar and Justice Soumitra Dayal Singh, which is hearing a case filed by JAL against YEIDA’s order canceling the allotment of 1,000 hectares to it on February 12, 2020, to develop a sports city off the Yamuna Expressway in Sector 25, is likely to pronounce judgment in the matter on the next hearing in August.
“We are of the firm opinion that in the face of the order of cancellation of allotment and during its pendency, we cannot grant interim protection to the petitioner to allow him to dispose of or sell any part of the disputed property. To do so would tantamount to setting aside the allotment… though that relief is not prohibited in law, depending upon the nature of the relief claimed, it can be granted at the stage of final hearing and not by way of interim protection,” the court’s order, dated July 13, read.
The court also noted that all attempts to reach an agreement between YEIDA and JAL over the past years have failed, and that the matter will now pass for the final year.
JAL had approached the HC seeking interim relief and expressed willingness to clear dues of Rs 3,621 crore, as reported by YEIDA. The developer also provided a resolution plan to complete the residential projects.
There is an ongoing dispute between YEIDA and JAL over outstanding land dues relating to the cancellation of the developer’s allotment of land. While YEIDA claims that JAL is owed Rs 3,621 crore, the developer argues that the dues were around Rs 1,500 crore.
During the hearing on 13 July, JAL’s senior counsel sought interim protection by staying the cancellation of allotment so that JAL could dispose of parts of the leased land to generate funds for both YEIDA’s undisputed and disputed demands. and generate revenue to complete the housing projects for which JAL was allotted a vast tract of land.
JAL’s counsel submitted that it is ready to side with YEIDA and deposit the appropriate amount during the pendency of this petition. The developer told the HC that it would take one year to sell the land. However, this proposal was rejected outright by YEIDA.
YEIDA told the court that JAL would have to pay 10% of the total dues for restoration of allotment.
The court also noted that the home buyers were put to hardship due to this petition. “The court provided adequate protection to the petitioner by passing a status quo order. That order allowed the petitioner to retain possession of the allotted land and restrained YEIDA from canceling the lease deed or resuming the land, or any part thereof, or dealing with the land or any part thereof in any manner whatsoever. Even if so, the interim order has caused serious prejudice to the home buyers,” the order said.
