CAG flags irregularities in Greater Noida farmhouse plot allotments

The CAG said the Greater Noida Authority, tasked with protecting ecological zones and floodplains, instead sold farmhouse plots in Hindon’s prohibited areas

The Comptroller and Auditor General (CAG) in its audit report revealed that Greater Noida authority commissioned major irregularities in the allotment of farmhouse plots , resulting in a revenue loss of ₹645 crore and violation of environmental norms, including illegal construction in the Hindon river floodplain.

The audit also flagged that plots were alloted without confirming clear possession of land.

The CAG said that the authority entrusted with protecting ecological zones and floodplains, itself got involved in selling farmhouse plots in prohibited zones of Hindon.

The authority had in 2011 launched the Institutional Farm Houses scheme meant for planned agricultural use and to maintain open green spaces. Large plots above 75 acres were allotted to developers, who were allowed to sub-lease smaller farmhouse plots for limited activities like dwelling units, swimming pools, nurseries, and dairy farming.

“Three massive plots measuring 13.47 lakh sqm (over 330 acres) were allotted to SDS Infratech Pvt Ltd (as lead member of a consortium), Gaursons India Ltd and Gaursons Hi-tech Infrastructure Ltd at a premium of ₹ 371.64 crore. However, dues of ₹ 597.6 crore piled up as developers defaulted. In the case related to SDS, allotment was cancelled in 2017 over the dues of ₹204 crore, but the matter remains sub-judice,” the report said.

The authority had in 2015 launched Krishi Farm Houses scheme for farmers whose land was acquired for the development. It offered small plots ranging (4,000 to 10,000 sqm) for cultivating fruits, vegetables, and medicinal plants, with only temporary structures permitted, the CAG said.

“However, in reality, permanent houses, shops, and polluting workshops cropped up on these lands,” said report.

In Haibatpur village, plots were approved just 130 to 550 metres from the Hindon river, despite the Regional Plan 2021 classifying the floodplain as a “Natural Conservation Zone”, allowing only 0.5% of land area for construction. Government orders issued in March 2010 had also clearly prohibited construction in floodplain areas and directed authorities to mark these zones in master plans.

Satellite imagery and joint verification in December 2019 confirmed widespread encroachments on Krishi Farm House plots.Officials found dense illegal occupation, including permanent residences, shops, garages, and kiosks. The board decided to scrap the scheme and refund deposits to allottees with 4% interest. Refunds were processed for eight of nine allottees between January 2020 and March 2021.

The audit also flagged that plots were alloted without confirming clear possession of land, even when portions were under litigation or unacquired. For instance, in FH-03, nearly 17,568 sqm was not acquired at the time of allotment. The authority also allowed developers to mortgage farmhouse plots to raise loans despite having massive dues pending, a practice the Supreme Court has earlier criticised as collusion between builders and authorities.

The CAG concluded that both schemes violated state government directives, regional planning norms, and environmental safeguards. Instead of safeguarding floodplains and green buffers, GNIDA actively facilitated their exploitation.

During the audit exit conference in January 2021, the Uttar Pradesh government accepted the findings and assured that it would review the farmhouse schemes, recover dues, and take steps to restore the Hindon’s floodplain.

“The authority will take corrective measures in this regard and improve the allotment guidelines in view of the CAG audit suggestions,” said Vinod Kumar, general manager of the Greater Noida authority.