The Allahabad High Court has stayed a Uttar Pradesh government order that granted significant relief to real estate developer Sunworld City in its long-running dispute with the Yamuna Expressway Industrial Development Authority (YEIDA). The court’s interim decision came during the hearing of a petition filed by YEIDA challenging the state government’s intervention. With the stay now in place, the execution and impact of the contested government order have been paused until further directions.
Court Halts Execution of Controversial Government Decision
Justice Arun Kumar, while hearing YEIDA’s writ petition on December 3, issued an interim order staying the implementation of the government’s July 2 decision. The challenged order had been issued under Section 41(3) of the Uttar Pradesh Urban Planning and Development Act, 1973, granting Sunworld City two key benefits:
1. A 14-year zero-period relaxation
2. Directions related to resolving lease issues on undisputed parcels of land
YEIDA argued that the government’s decision interfered with ongoing legal and administrative processes concerning the township project. Taking note of the objections, the High Court stayed the order’s operation and issued notice to Sunworld City. All respondents have been given six weeks to file their counter-affidavits. Until further orders, the effect and execution of the July 2, 2025, government decision will remain suspended.
Background of the Land Allocation and Subsequent Disputes
YEIDA had allotted approximately 103 acres of land to Sunworld City in Sector 22D in 2011 for a township project. However, around 38 acres of this land remained outside YEIDA’s physical possession due to pending disputes. Citing non-payment of lease premium and unresolved land matters, YEIDA cancelled the allotment.
Sunworld City approached the High Court in 2012, leading to several legal developments. On September 14, 2012, YEIDA executed a lease deed for about 65 acres of land. Additionally, YEIDA granted a zero-period relaxation from November 16, 2011, to December 31, 2016, for the area affected by the court’s stay orders.
In its continued attempt to revive the stalled project, YEIDA issued a demand notice on April 24, 2024. The notice offered Sunworld City an opportunity to restart the project by paying 25 percent of the lease premium. The state government’s July 2025 decision—now stayed by the High Court—had provided further relaxations to the developer, prompting YEIDA to challenge the order.
With the High Court’s intervention, the dispute enters a new phase where both the government and the developer must respond to YEIDA’s objections. The matter will now progress after all parties file their responses, while the contested government order remains inoperative.
