Noida Entrepreneurs Association v. New Okhla Industrial Development Authority & Others

1. In pursuance to the order dated 6-1-1998 (Noida Entrepreneurs Assn. V. Noida, (2011) 6 SCC 526 [LQ/SC/1998/3] ), an affidavit of Shri Sudhir Kumar, Secretary (Appointment), Government of U.P. has been filed on behalf of the State of U.P. wherein the course of the action which the State Government proposes to adopt with regard to the report of the Inquiry Commission has been indicated. It has been stated that the State Government proposes to initiate disciplinary proceedings against Respondent 7 and to have the charges about which the Commission has expressed its inability to give specific recommendation for want of further investigation to be inquired into by the Vigilance Department of the State.

2. Having regard to the seriousness of the allegations that have been made in the matter of irregularities in the matter of allotment as well as conversion of plots in NOIDA we are of the opinion that it would be appropriate that the matter is investigated by the Central Bureau of Investigation (CBI) and if such investigation discloses commission of a criminal offence the person found responsible should be prosecuted in a criminal court. For the time being, we are directing CBI to conduct an investigation in respect of the irregularities in the matter of allotments and conversions of the plots to which reference has been made in the letters of the Director (CBI) dated 6-12-1995 and 16-12-1996 (at pp.115 and 116 of the paper book) and the self-contained note appended to the letter dated 16-12-1996.

3. Shri G.L. Sanghi, learned Senior Counsel appearing for Respondent 7 states that though Respondent 7 does not admit that she has committed any irregularity in the matter of allotment or conversion of plots in NOIDA but according to Respondent 7 there are other persons who might have committed such irregularity and he seeks leave to file an affidavit in this regard. He may file an affidavit giving particulars of such irregular allotments and in the event of such affidavit being filed further directions in that regard will be given.

4. As regards the irregular allotment and conversion of plots which have been found to have been made in the report of the Inquiry Commission, we are of the view that it is necessary that action should be taken for cancellation of such allotments and conversion. Shri Rajeev Dhawan, prays for two weeks time to file a list of persons who have benefited by such irregular allotments/conversions. He may do so within two weeks. As regards the plots which have been irregularly allotted or converted as mentioned in the report of the Inquiry Commission, it is directed that the allotttees as well as the persons in possession thereof shall maintain status quo as it exists today with regard to possession and constructions over the same and that they shall not alienate or create any third-party rights in these properties. Respondent 1 is directed to ensure compliance with these directions. It is, however, made clear that while passing these directions we are not expressing any view on the validity of the allotment or conversion of the said plots.

5. The learned counsel for the State of U.P. undertakes to supply a copy of the report of Inquiry Commission to the learned counsel for Respondent 1 and the learned counsel for CBI. List after two weeks on a non-miscellaneous day.

6. It is not to be listed before a Bench of which Honble Mr. Justice V.N. Khare is a member.