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Ghaziabad: GDA to recover INR 200 crore from Vaishali property owners decades after land acquisition

#Law & Policy#India#Uttar Pradesh#Ghaziabad
Last Updated : 4th Feb, 2025
Synopsis

The Ghaziabad Development Authority (GDA) has decided to collect INR 200 crore from Vaishali property owners, nearly 36 years after acquiring land for the township. The move stems from a long-drawn legal battle that saw courts repeatedly increasing compensation rates for farmers whose land was acquired between 1986 and 1989. After failing to secure relief from the Supreme Court, GDA must now pay the enhanced compensation of INR 297 per square yard. The board also discussed and approved 14 proposals, including a decision to postpone mandatory structural audits for high-rises until discussions with developers are held.

The Ghaziabad Development Authority (GDA) has decided to recover INR 200 crore from flat and plot owners in Vaishali, nearly 36 years after acquiring land for the township. This decision was approved during a board meeting in Meerut, where several key proposals affecting property owners in Ghaziabad were discussed.


One of the major points on the agenda was the longstanding land acquisition case involving 453 acres acquired between 1986 and 1989. At the time, GDA compensated farmers at INR 50 per square yard. However, in 1991, the farmers approached the district court demanding higher compensation. The court ruled in their favour, increasing the rate to INR 160 per square yard in 2001. GDA challenged the verdict in the Allahabad High Court, which further raised the compensation to INR 297 per square yard in 2017.

Unwilling to accept the ruling, GDA took the matter to the Supreme Court in 2019, but the verdict did not go in its favour. The apex court advised the authority to file a review petition in the Allahabad High Court, but this too failed to bring relief. As a result, GDA is now obligated to compensate the farmers at the revised rate.

GDA secretary Rajesh Kumar Singh explained that the total amount payable stands at INR 200 crore, which will be recovered from Vaishali's original property owners. He emphasised that this move was court-mandated rather than an independent decision by the authority. While details of the recovery process are still being worked out, Singh noted that the authority was exploring various approaches.

During the board meeting, which was chaired by Meerut divisional commissioner Hrishikesh Bhaskar Yashod, a total of 16 proposals were discussed, out of which 14 received approval. One of the key decisions was the deferment of mandatory structural audits for multi-storey buildings. The board ruled that discussions would first be held with members of Credai, a developers' association, before implementing the regulation.

Initially, the plan mandated structural audits every three years, with the responsibility placed on developers or, in cases where maintenance had been transferred, on apartment owners' associations (AOAs). These audits were to be conducted by premier institutions such as IITs and NITs. However, with developers expressing concerns, the GDA decided to postpone enforcement until further consultations take place.

GDA's decision to recover INR 200 crore from Vaishali's original property owners highlights the financial implications of long-pending land disputes. While the compensation hike is in line with court rulings, property owners now find themselves burdened with additional costs decades after purchasing their flats or plots. At the same time, the deferment of mandatory structural audits indicates GDA's willingness to engage with stakeholders before implementing regulations. The outcome of discussions with developers will determine the future course of such audits, reflecting a balance between safety concerns and practical execution.

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