In a significant development in a high-value land dispute from Noida, the Supreme Court has cancelled a compensation order worth about ₹295 crore after finding that the judgment was obtained through fraud and suppression of facts. The case relates to land acquired by the Noida Authority where a businessman allegedly misled the courts to claim sole ownership and secure the compensation amount.
A major land dispute related to a high-value property in Noida has taken a new turn after the Supreme Court cancelled a compensation order of approximately ₹295 crore that had earlier been awarded in connection with a land acquisition case.
The apex court found that the order had been obtained through fraudulent means and suppression of key facts and therefore set aside the previous rulings connected to the compensation claim.
The case is related to a land parcel located in Chhalera Banger village in Sector-18 of Noida. The land was originally purchased in 1997 by three individuals – Reddy Veeranna, Vishnu Vardhan and T. Sudhakar.
Later, a portion of this land was acquired by the Noida Authority in 2005 for development purposes. Subsequently, the land was leased to a private developer and today the location includes a major commercial development, including the well-known Mall of India complex.
Initially, all three landowners had jointly challenged the acquisition and pursued legal remedies regarding compensation. However, over time a dispute emerged regarding the ownership of the land and the rightful claim to compensation.
According to court records, Reddy Veeranna later began claiming exclusive ownership of the property. He relied on a compromise decree obtained in 2006, which allegedly allowed his name to be recorded as the sole owner in government records.
However, it was later argued that the decree had been obtained using a revoked power of attorney, raising serious questions about the validity of the ownership claim.
In 2019, Reddy Veeranna approached the Allahabad High Court seeking enhanced compensation for the acquired land. Importantly, the petition was filed without including the other co-owners in the proceedings.
The High Court subsequently passed an order granting compensation at the rate of ₹1.1 lakh per square metre. Following legal developments and calculations based on the land area, the total compensation amount rose to approximately ₹295 crore.
Later, Vishnu Vardhan, one of the original co-owners of the land, challenged the decision in the Supreme Court. He alleged that Reddy Veeranna had misled the court, concealed material facts and wrongfully excluded the other rightful stakeholders while pursuing the compensation claim.
The matter was then examined by a three-judge bench of the Supreme Court, which carefully reviewed the background of the dispute and the legal proceedings that had taken place earlier.
After hearing the case, the Supreme Court observed that the compensation order had indeed been obtained through fraudulent representation and suppression of important facts. The court noted that the claimant had deliberately excluded other co-owners from the legal proceedings and had misrepresented the ownership status of the land.
Based on these findings, the apex court set aside the Allahabad High Court’s 2021 order granting compensation and also recalled its own earlier judgment passed in 2022, declaring both decisions invalid.
The Supreme Court stated that a judgment obtained through fraud cannot be allowed to stand and must be treated as null and void.
The court also emphasized that the judicial process must remain fair and transparent and that any attempt to misuse legal proceedings for financial gain undermines the integrity of the justice system.
Following the cancellation of the earlier orders, the Supreme Court has sent the case back to the Allahabad High Court for a fresh hearing.
The High Court will now reconsider the matter again and examine all aspects of the dispute, including the ownership of the land and the legitimate entitlement to compensation. Importantly, the case will now be heard with all concerned stakeholders involved in the proceedings.
Meanwhile, the compensation amount remains secured through property securities deposited by Reddy Veeranna, ensuring that the disputed funds remain protected until a final decision is reached.
The fresh hearing before the Allahabad High Court is expected to determine the rightful claimants and resolve the long-standing dispute surrounding the land acquisition and compensation.
The case has drawn attention due to the large compensation amount involved and the allegations of manipulation of legal procedures in securing the earlier court order.
