Editorial- Sep 2022

The Mayawati regime in Uttar Pradesh (2007-12) gave away at throwaway prices farm house plots to select companies and affluent individuals. Without any objective criteria, this discretionary allotment caused a loss of Rs 2,833 crore loss to the state, reveals an audit by the CAG. There is also PIL pending before the Allahabad high court on this matter. During the stated phase, the Noida Authority in Uttar Pradesh allotted 181 Farm House Plots, each of about 2.5 acres, to 157 applicants. The farm house plots were allotted at an average of Rs 3,390 per sqm, compared to the basic price of Rs 12,814 to Rs 32,403 per sqm fixed by the Noida Authority in other cases of allotments.

The NOIDA (Agriculture Use Zone) Area Regulations, 1991 defines the concept of farm house as a plot of land in an area demarcated for agricultural use and zoning regulations mandate farm houses outside inhabited areas. Regional, sub-regional plans and Noida Master Plan 2021 lists the permissible activities.

The Mayawati government had acquired agricultural land in seven villages along the Noida-Greater Noida expressway and put them on sale under the Open Ended Scheme (OES) for Development of Farm Houses on Agricultural Land in 2008-09 and through another scheme OES 2010. The scheme was launched citing encroachment on agricultural land, but no records were produced before CAG.

Thereafter, allocation was done in an arbitrary manner without any transparent bidding process or following any objective criteria. Select companies, their directors, family members etc cornered multiple plots at one-fifth prices based on the recommendations of a Plot Allotment Committee (PAC) handpicked by the Noida Authority. Post allotment, terms and conditions pertaining to construction and functional certificate, were changed. Sale and purchase of land without construction was permitted thus also allowing private parties to reap windfall profits.

The CAG audit reveals that many promoters applied through their different front/ shadow companies/ directors. In many cases, multiple allotments to applicants on a single date were made and front companies were used for allotment of plots through different applications. Allotments were made to companies which were not even incorporated. Fraudulent actions were permitted by Noida Authority officials. The loot was carried out in an utterly brazen manner. Read the cover story for complete details.