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SC Action on Builders - Noida Officers Nexus

UP Govt asked to replace Noida Authority with people-centric governance model to improve public participation.

BY Realty+
Published - Monday, 18 Aug, 2025
SC Action on Builders - Noida Officers Nexus

The findings of an SC-constituted Special Investigation Team (SIT) flags Noida Authority's functioning, from centralized decision-making in the hands of a few officers to suspicious land allotment policies, favouring builders and an overall lack of transparency.

The SIT found Noida officers involved in 20 cases of excess compensation to landowners and recommended a probe into the assets of officials and their relatives. It also found the absence of processes for public consultation and environmental impact assessments, along with delays and inadequate grievance redressal.

Accepting the recommendations, a bench of Justices Surya Kant and Joymalya Bagchi directed the UP chief secretary to place the proposal for converting Noida into a metropolitan council before the council of ministers. Until a decision is taken, the court ordered the appointment of a chief vigilance officer in Noida, to be an IPS officer or a CAG officer on deputation, for financial audit.

The Supreme Court has directed the Uttar Pradesh government to consider replacing the Noida Authority to improve governance and public participation. And to initiate the transition, the state would need to amend the UP Industrial Area Development Act, 1976, under which the Noida Authority was originally created.

Legal experts and former officials say the process will be complex and hinge on political will, requiring extensive consultations and structural rethinking. Until then, the court has ordered the appointment of a chief vigilance officer and the formation of a Citizen Advisory Board within four weeks.

The bench of Justices Surya Kant and Joymalya Bagchi also banned the implementation of any project in Noida without environmental clearance from the SC’s green bench. The court emphasized the need for citizen representation, pointing out that although the 1970 Act allows for five nominated members on the Authority’s board, the provision has never been implemented.

Former Noida Authority CEOs Deodatta Sharma and Brijesh Kumar noted that while citizen advisory boards can be formed through administrative orders, past efforts like Greater Noida’s neighborhood council in the early 2000s failed to sustain momentum.

Residents’ groups have long demanded a voice in city planning stating that projects are imposed without understanding ground realities many of which prove useless. They have repeatedly petitioned for authority-citizen committees, urging that participatory models be adopted across all industrial development authorities in the state.

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