Excess Compensation For Noida Land Acquisition : Supreme Court Gives SIT Two More Months To Complete Investigation

The Supreme Court today granted the Special Investigation Team an additional two months to complete its investigation into the alleged grant of exorbitant compensation to landowners in NOIDA.

The bench of CJI Surya Kant and Justices Ujjal Bhuyan and NK Singh was hearing a case where it had ordered an SIT probe while dealing with the anticipatory bail plea of a NOIDA law officer, following allegations of higher compensation being awarded to some landowners, though they were "not entitled".

Previously, the Court passed an order directing preliminary enquiries on the issue of exorbitant payment of land acquisition compensation and the alleged collusion between officers and landowners.

Today, Solicitor General Tushar Mehta, appearing for the NOIDA Authorities, sought some time to file the counter affidavit.

The bench was informed that the SIT has filed a status report and was seeking an extension to conclude the ongoing investigation. The CJI said, "Tell them to complete in 2 months or so; they are asking 3 months. Already sufficient time was given."

Sr Advocate Siddharth Dave, appearing for intervening farmers, submitted that an application was filed earlier by the farmers seeking protection, which the Court granted. However, in the last order, which constituted the SIT, it doesn't mention the extension of the earlier protection.

The CJI assured that the farmer will be protected; however, he added, "we would like to know that it is by mistake that the payment has been made, then you are entitled in law for protection"

He clarified that "SIT will have free hand to examine everything and submit a report to us."

The court proceeded to grant an extension of 2 months to the SIT to complete the investigation and extended the interim protection granted to farmers.

" Status report dated 26.10.2025 filed by the SIT is taken on record. We appreciate the steps taken so far .... We hope that the SIT will be able to take the ongoing investigation to a logical end. However, in view made for the prayer for extension of time, we grant two months additional time to the SIT to conclude the investigation. Latest status report to be filed....interim direction to continue."

The bench also granted liberty to the NOIDA Authorities to place on record an additional affidavit.

The Court, earlier, restrained project development in NOIDA without prior Environmental Impact Assessment and approval of the report by the Court's green bench. A new SIT comprising three IPS officers was ordered to be constituted, replacing the earlier SIT, to carry out a new mandate.

Background

It was in January this year that the Court ordered the SIT probe. In August, the SIT submitted a report that exorbitant compensation was paid to landowners in 20 cases. Enhanced compensation was paid to landowners in 1198 cases, whereas Court directions were there for 1167 cases. It further named erring officials of NOIDA with regard to the 20 cases.

On whether there was collusion between beneficiaries and NOIDA officials, the SIT explained that it was necessary to examine bank account details of the officers, their family members, landowners, and assets acquired by officers during the relevant period, as well as documents from over 10 years ago. It further suggested the constitution of an independent, specialised agency having expertise in disproportionate asset cases, including financial transaction experts.

With regard to the overall functioning of NOIDA, the report mentioned that the current initiatives are commendable, but the authority is more 'reactive' in nature and lacks a proactive approach. Residents are complaining of delays in responses and inadequate resolution of complaints. The governance structure in NOIDA tends to centralise power within a small group of individuals, and the decision-making process lacks transparency. Significant decisions are made without adequate public scrutiny or input; there is an absence of regular public reporting on project statuses, and land allotment committee policies tend to favour developers.

The SIT recommended the formation of a metropolitan corporation in place of the existing entity; appointment of a Chief Vigilance Officer; constitution of a committee monitored by the High Court to codify the distinct powers of NOIDA; regular third-party audits to ensure probity in financial transactions; regular scheduling of public meetings; a citizen advisory board; and prioritised environmental impact assessments.

Taking note of this report, the Court, in August, formed another SIT, comprising 3 IPS Officers, and expanded its mandate.

On August 13, the bench issued the following directions:

(i) Director General of Police, UP shall constitute an SIT comprising 3 police officers of the IPS cadre to investigate the issues as identified by the previous SIT, especially issues no. 3 and 4;

(ii) SIT so constituted shall immediately register preliminary enquiries and proceed to inquire into the points highlighted by the previous SIT on issue no.3. In this regard, forensic experts as well as the Economic Offences Wing of the state police shall be associated;

(iii) If the SIT, after preliminary enquiry, finds that a prima facie cognizable offence was committed, it shall register the case and proceed further in accordance with law;

(iv) The outcome of the SIT shall be placed on record by way of a status report by the head of SIT, who shall be an officer not below the rank of Commissioner of Police;

(v) In order to infuse transparency and a citizen-centric approach in day-to-day functioning of NOIDA, a copy of the SIT report shall be placed before UP Chief Secretary, who in turn shall place it along with the appropriate agenda item before the Council of Ministers to take appropriate decision. The Chief Secretary shall also post a Chief Vigilance Officer in NOIDA, who should either be from IPS cadre or on deputation from CAG. The Chief Secretary shall also put up the matter before competent authority and ensure that citizen advisory board is constituted with 4 weeks. Further, it is to be ensured that no project is given effect in NOIDA without prior EIA and approval of the report by green bench of the Supreme Court.

(vi) Wherever SIT is required to seek prior sanction to prosecute officers (before registration of FIR under PC Act), competent authority shall accord sanction within 2 weeks of submission of application.

Case Title: VIRENDRA SINGH NAGAR Versus STATE OF UTTAR PRADESH AND ANR., SLP(Crl) No. 1251/2023