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Supreme Court orders fresh SIT to probe Noida-builder compensation collusion

#Law & Policy#Commercial#India
Last Updated : 14th Aug, 2025
Synopsis

The Supreme Court has directed a fresh Special Investigation Team (SIT) to examine allegations of collusion between Noida Authority officials and builders over inflated land acquisition payouts. The three-member team, supported by forensic and economic offences experts, must scrutinize bank and asset trails of officials, landowners, and their families and act under law where wrongdoing emerges. The court also imposed environmental checks on new projects, mandated oversight via a Chief Vigilance Officer and a Citizens Advisory Board, and awaits updates in eight weeks.

The Supreme Court ordered the establishment of a new SIT, tasked with probing serious allegations of collusion between Noida Authority officials and builders over inflated land acquisition compensation. The fresh team, set to replace the earlier investigation, will include three IPS officers supported by forensic analysts and the Economic Offences Wing, entrusted with scrutinizing evidence and ensuring accountability.


The new team is expected to launch preliminary inquiries immediately. Should the SIT find prima facie evidence of wrongdoing, it must register the case and proceed legally. The prior investigation had already flagged excessive compensation in 20 cases and identified some officials as potentially culpable. The scope now broadly extends: probing bank accounts of officials, landowners, family members, and tracing assets acquired over the relevant period.

In tandem with the investigation, the court froze all new project approvals in Noida unless there's a valid Environmental Impact Assessment (EIA) endorsed by its Green Bench. Further, it ordered that the SIT's findings be placed before the UP Chief Secretary, who must then present them to the Council of Ministers for consideration of reforms.

To strengthen administrative oversight, the court directed the immediate appointment of a Chief Vigilance Officer, drawn either from the IPS cadre or deputed from the Comptroller and Auditor General's office. A Citizens' Advisory Board is also to be set up within a month to involve residents in governance and boost transparency. The court scheduled the next hearing in eight weeks, during which the SIT must report its progress.

Looking back, an earlier SIT was ordered earlier this year to examine excessive compensation payments, suggest those responsible, and report within a stipulated timeframe; it flagged serious concerns over lack of transparency and fairness in Noida's operations.

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