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The Lucknow Municipal Corporation (LMC) recently sealed Sahara Shaher, a 170-acre property in Gomti Nagar, citing alleged lease violations. The LMC claims the 30-year lease, which ended in 2024, was not honored, prompting cancellation of the lease and license agreements. Sahara India disputes these allegations, stating it invested over INR 2,480 crore, developed 87 residential and commercial buildings, and paid all dues including INR 17.58 crore in taxes. The company has moved the Allahabad High Court, challenging LMC's actions, which they describe as arbitrary and unlawful.
The Lucknow Municipal Corporation (LMC) carried out the sealing of Sahara Shaher, a 170-acre development in Gomti Nagar, after citing alleged violations of lease norms. The civic body stated that the 30-year lease, which concluded in 2024, was not properly followed, leading to the cancellation of both the lease and the license agreements. According to LMC officials, Sahara India Commercial Corporation Ltd. failed to develop the land as required under the agreements, which included residential, commercial, and green belt projects. Advertisement
Earlier, the LMC had temporarily halted the sealing process to allow residents and occupants time to vacate, showing sensitivity to the people living in the complex. The decision followed a detailed investigation and review led by Municipal Commissioner Gaurav Kumar, which concluded that the license and lease agreements had been violated. Based on the inquiry committee's recommendations and legal opinion, the LMC canceled the license agreement for 130 acres and the lease deed for 40 acres earmarked for a green belt.
Sahara India has strongly contested these claims, stating that it invested over INR 2,480 crore in developing the property and constructed approximately 87 residential and commercial buildings. The company emphasized that all lease rentals, municipal dues, and house taxes exceeding INR 17.58 crore were fully paid. Development was carried out under formal agreements with approvals from the Lucknow Development Authority and the municipal corporation.
The disputes date back to the late 1990s, when Sahara moved civil courts after disagreements on land development arose. Interim protection orders were granted then and continue to remain operative. Sahara also highlighted an arbitral award in its favor in 2017, directing the municipal corporation to execute the lease, which has not yet been implemented. Despite these legal safeguards, the LMC proceeded to take forcible possession without affording Sahara a proper hearing.
In response, Sahara India has approached the Lucknow bench of the Allahabad High Court, seeking to restrain the LMC from interfering with its possession of Sahara Shaher. The petition challenges LMC's orders issued earlier in September to cancel the lease and take control of the property. Sahara's legal team described the municipal action as arbitrary, illegal, and lacking due process. The hearing is scheduled for the coming week.
The sealing of Sahara Shaher has significant implications for residents, investors, and the future of large-scale urban projects in Lucknow. Both parties await judicial clarification, which will likely shape how similar disputes over municipal leases and land development are resolved in the future.
Source: PTI
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