Noida board to meet today, may decide on land cost of DLF Mall of India
The Noida authority board meeting, scheduled on Tuesday, may take a final call on the compensation to be awarded to the land owner for the land on which DLF Mall of India is built, in the city’s busiest commercial hub of Sector 18
The Noida authority board meeting, scheduled on Tuesday, may take a final call on the compensation to be awarded to the land owner for the land on which DLF Mall of India is built, in the city’s busiest commercial hub of Sector 18.
The Noida authority acquired the nearly 7,400 square metre plot in 2005, from land owner Reddy Veerana, who later objected to the acquisition on the grounds that the land compensation offered was “unfair”.
On January 31, 2011, then Gautam Budh Nagar administration decided on a compensation of ₹18,00,481 (a little over ₹18 lakh) along with interest at a rate of ₹181.87 per square metre, which the developer refused.
That was the beginning of a long and protracted legal battle between the Noida authority and the Veerana Reddy which started at the Gautam Budh Nagar district courts, advanced to the Allahabad high court, and, finally, reached the Supreme Court.
Finally, on May 5, 2022, a Supreme Court bench of justices Vineet Saran and JK Maheshwari, directed the authority to pay a land compensation at the rate of ₹1,10,000 per square metre along with an interest of 15% and penal interest of 3%. The authority is yet to calculate the exact amount of money that it needs to pay Veerana, who won the case.
“We are seeking a legal opinion on the matter and the amount to be paid is yet to be calculated,” said Ritu Maheshwari, chief executive officer, Noida authority.
Sources,however, said the land compensation amount, in line with the SC order, works out to around ₹300 crore, which needs to be paid to Veerana. HT contacted the developer but he refused comment on the issue.
DFL Mall of India spokesperson said, “That matter is between the Noida authority and the land owner.”
The apex court in its order also told the authority that since DLF Mall of India land was purchased in an auction, the entire land compensation will have to be paid by the authority itself.
The board will be taking a call on this issue on Friday, said authority sources aware of the meeting agenda.
“The board will discuss and decide on this landmark case because if over ₹1 lakh per square metre is paid to one land holder as land cost, then all other land owners may also demand similar rates in the future,” said a Noida authority official, requesting anonymity.