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2011 Supreme(SC) 498

2011 AIR(SC) 2112
Supreme Court of India
G.S. SINGHVI & THE HONOURABLE DR. JUSTICE B.S. CHAUHAN
NOIDA Entrepreneurs Association
Versus
NOIDA & Others
WRIT PETITION (CIVIL) No.150 of 1997 & WRIT PETITION (CIVIL) NO. 529 OF 1998
Decided on : 09-05-2011

Advocates Appeared:
For the Appearing Parties:P.P. Malhotra, ASG, Rajeev Dhawan, (A.C.), P.S. Narasimhan, K.T.S. Tulsi, Rakesh Dwivedi, Sr. Advocates, Nikhil Nayyar, (A.C.), Dayan Krishnan (A.C.) & Rakesh U. Upadhyay, Abhijeet Kaketi, E.C. Vidya Sagar, Ms. Sangeeta Kumar, Nikhil Sharma, T.A. Khan, M. Khairati, A.K. Sharma, Ravi Prakash Malhotra, Vibhu Tiwari, Mrs. Deepti R. Mehrotra, Ravinder Singh, M.S. Yadav, and Jogy Scaria, Advocates.

Headnote:A) CONSTITUTION OF INDIA : Art.14, CRIMINAL PROCEDURE CODE : S.468, UTTAR PRADESH INDUSTRIAL AREA DEVELOPMENT ACT : Public Interest Litigation alleging serious irregularities by Chief Executive Officers and other officers of NOIDA, an authority constituted under the UP Act was accepted and CBI directed to make a detailed enquiry into these allegations and also enquire why and how disciplinary action was not taken by the State on these report compiled by Amicus Curie.

       

       .

       

Judgement Key Points

On a standard of preponderance of probabilities, the material on record, including the findings of the Chairman, Board of Revenue as affirmed by the K.T. Thomas Commission, establishes serious irregularities and misconduct by Shri Ravi Mathur, IAS (respondent no.4), during his tenure as CEO of NOIDA and Greater NOIDA. (!) [1000508160008] Specifically, contracts worth over Rs.10 crores were awarded to select contractors like M/s. Anil Kumar & Co., M/s. Techno Construction Co., J.K. Jain, and M/s. Fair Deal Engineers without inviting tenders, justified on untenable grounds of urgency that lacked substantiation, with file notes appearing tailor-made and procedures flouted. (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) (!) Further, in respect of his personal plot allotments and conversions (from Sector 35 to Sector 27, then to Sector 44), conversion charges were paid only once despite two distinct conversions yielding better location and size, in potential violation of prevailing office orders, facilitated by a suspicious modification to available plot lists during his tenure as CEO. (!) (!) (!) (!) (!) Additionally, the change of user of a 13-hectare City Park (near Sectors 24, 33, 35) to residential Sector 32 with 200 plots was effected without following statutory procedures under Regulations 1991, without Board approval or Master Plan amendment, and development works awarded sans tenders. (!) (!) (!) (!) (!) (!) These actions reflect arbitrariness, haste presuming mala fides, colourable exercise of power, and breach of public trust doctrine, causing procedural and potential pecuniary harm to the Authority despite no direct quantified loss. (!) (!) (!) (!) (!) (!) (!) (!) (!) While disciplinary proceedings are time-barred under applicable rules, (!) the gravity warrants criminal investigation under Prevention of Corruption Act, 1988 (Sections 13(1)(c), (d)), as no limitation applies for offences punishable over 3 years' imprisonment and delay is condonable. (!) (!) (!) (!) (!)


Judgment :

Dr. B.S. CHAUHAN, J.

1. The Legislature of Uttar Pradesh enacted the U.P. Industrial Area Development Act, 1976, (hereinafter referred to as `Act 1976') for the purpose of proper planning and development of industrial and residential units and to acquire and develop the land for the same. The New Okhla Industrial Development Authority (hereinafter referred to as the Authority'), has been constituted under the said Act, 1976. The object of the Act had been that genuine and deserving entrepreneurs may be provided industrial and residential plots and other necessary amenities and facilities. Thus, in order to carry out the aforesaid object, a new township came into existence. All the activities in the Authority had to be regulated in strict adherence to all the statutory provisions contained in relevant Acts, Rules and Regulations framed for this purpose. However, from the very inception of the township, there has always been a public hue and cry that officials responsible for managing the Authority are guilty of manipulation, nepotism and corruption. Wild and serious allegations of a very high magnitude had been leveled against some of the officials carrying out the responsibilities of implementing the Act and other statutory provisions.

2. The instant writ petition was originally filed seeking a large number of reliefs including the allotment of industrial and residential plots to the members of the petitioner-Association and a large number of officials who had acted as Chief Executive Officers (hereinafter referred to as `CEO') of the Authority had been impleaded therein as respondents. However, considering the fact that relief for personal benefits of the members had been sought and alternative means for seeking the redressal of grievances in that respect were available, the petitioner made a request to the Court that its petition may be treated as a public interest litigation (in short `PIL') for a limited purpose. This Court vide order dated 21.4.1997 treated the matter as PIL and issued show cause notice only to the extent of the following reliefs:

"(1) Issue writ of mandamus and/or any appropriate writ and direct the CBI to investigate into all the land allotments and conversion of lands made by the NOIDA during the past 10 years.

(2) Issue an appropriate writ and directions and frame guidelines for allotment of lands by the NOIDA."

3. Dr. Rajeev Dhavan, learned senior counsel who had been appearing for the petitioner

in the matter was requested by this Court vide order dated 29.8.1997 to act as Amicus Curiae. The matter was heard several times by this Court and after scrutinising of a very large number of documents, the Court was of the opinion that the allegations made in the petition required investigation. Thus, vide order dated 15.12.1997, this Court issued notice to the State of U.P. to indicate its consent to an investigation being made by the Central Bureau of Investigation (hereinafter referred to as CBI), in view of the very serious nature of the allegations. The State of U.P. had also received similar complaints and thus, it constituted a Commission of Inquiry headed by Justice Murtaza Hussain, a former Judge of Allahabad High Court to enquire about the same. The Commission completed its task and submitted its report. The said report was also placed before this Court in the first week of January 1998. As the report indicated, prima facie view of the Commission, that Mrs. Neera Yadav, IAS, respondent no.7 had committed serious irregularities and illegalities, a copy of the report of the Commission was also directed to be given to her and this Court vide order dated 6.1.1998 asked the State of U.P. as to whether this report had been accepted by the State Government and, if so, what was the likely follow up measure pursuant thereto. The State Government submitted a reply in response to the said show cause pointing out that the State Government proposed to initiate disciplinary proceedings against her.

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