Supreme Court halts NOIDA development without EIA and Green Bench approval, orders fresh SIT probe into land acquisition irregularities and transparency lapses.
Supreme Court mandates Environmental Impact Assessment and Green Bench nod before any NOIDA project, while ordering fresh probe into land compensation and governance gaps.
Bench Calls for Complete Overhaul of NOIDA Governance and Environment Clearance
The Supreme Court today delivered a stringent ruling on the troubled governance of the New Okhla Industrial Development Authority (NOIDA), following a harshly critical report by a Special Investigation Team (SIT). The Court ordered that no project in NOIDA shall proceed without a prior Environmental Impact Assessment (EIA) and approval from the Court’s Green Bench. Simultaneously, it directed the registration of preliminary enquiries into allegations of grossly excessive compensation to landowners and collusion between NOIDA officials and beneficiaries. A fresh SIT is to be constituted to continue the investigation.Live LawThe Law Advice
SIT Report Lays Bare Administrative and Transparency Failures
The SIT’s report uncovered serious governance problems within NOIDA: in at least 20 cases, landowners received exorbitant compensation without legal entitlement. Overall, 1,198 cases saw enhanced compensation, yet just 1,167 were backed by court directions. The remainder were unjustified and flagged as illicit payouts.Live Law
Further, the SIT spotlighted systemic flaws: centralised decision-making, lack of public scrutiny, opaque project reporting, and policies favouring developers over citizens. Officials suggested remedies including forming a metropolitan corporation, appointing a Chief Vigilance Officer, convening a citizen advisory board, and conducting third-party audits to restore accountability.Live Law
Supreme Court Orders Robust Investigation and Institutional Reforms
A bench comprising Justices Surya Kant and Joymalya Bagchi outlined specific directions:
- The Director General of Police, UP must appoint a new SIT of three IPS officers to probe collusion and compensation irregularities flagged by the previous SIT.
- This SIT must immediately register preliminary enquiries and involve forensic and Economic Offences Wing experts.
- Upon finding prima facie cognizable offences, it shall formally register cases and proceed under law.
- A senior officer (Commissioner rank or higher) shall head the SIT and file status reports throughout.
- To infuse transparency, the SIT’s findings must reach the UP Chief Secretary and be tabled before the Council of Ministers. A Chief Vigilance Officer and citizen advisory board to be constituted within four weeks.
- No project in NOIDA shall move forward without EIA and Green Bench approval.
- Sanction requests under the PC Act must be processed within two weeks.Live Law
The matter is now scheduled for a follow-up hearing in eight weeks, with the SIT’s report held securely with the court master.Live Law
Context: A Curtain-Raiser to Long-Standing NOIDA Controversies
This ruling builds on earlier Supreme Court directives. In January 2025, while hearing anticipatory bail pleas against NOIDA law officers accused of pushing wrongful compensation payouts, the Court had already constituted an SIT to investigate whether compensation exceeded court-mandated entitlements, and whether there was collusion or transparency lapses. That SIT was also instructed to examine systemic functioning concerns.The Indian ExpressThe Economic Times
Prior attempts to probe the issue—including a fact-finding panel—were dismissed by the Court as superficial and narrowly focused. The apex court held that broader, independent, and objective oversight was essential.The Times of IndiaThe Indian Express
Legal Implications and the Way Forward
This order ushers in a paradigm shift in NOIDA’s governance—mandating environmental, administrative, and investigative rigor in project rollouts. It reflects balanced adherence to environmental law and enhanced accountability in civic administration. The emphasis on citizen participation, audit mechanisms, and vigilance structures aligns with democratic transparency ideals.
The Green Bench approval requirement underscores the judiciary’s growing role in environmental oversight, particularly amid fast-paced urbanisation. For NOIDA, a hub of real estate expansion, the new rules symbolize a course correction—aimed at ethical governance and public-interest centric development.
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