The court emphasized the need to pierce the corporate veil to hold individuals accountable for fraud, asserting judicial authority to intervene in administrative decisions when public interest is compromised.

JUDGMENT :

TABLE OF CONTENTS

1. Heard Sri Sanjeev Kumar Rai, learned counsel for the petitioners; Sri Mohan Srivastava, learned Standing Counsel for the State- respondents and Shri Manish Goyal, learned Senior Counsel assisted by Sri Kaushalendra Nath Singh and Ms. Anjali Gokhlani, learned counsel for respondent-NOIDA.

A. FACTUAL MATRIX AND HISTORY OF THE DEVELOPMENT OF THE SPORTS CITY

2. The Board of Noida Authority took a decision on 16.8.2004, to develop sports facilities of international standards in Noida. In the meeting held on 25.6.2007 the Board came to a conclusion that there are no sports facilities available in Noida, hence, an area of 311.60 hectares was marked for development of the sports city. In the next Board meeting held on 8.4.2008, it was resolved, keeping in mind of the upcoming Commonwealth Games in 2010, that the land use of sector 76, 78, 79, 101, 102, 104 and 107 be changed for the development of the sports city. However, the area earmarked to develop sports city was increased to 346 hectares. Accordingly, Grant Thorton was appointed to formulate the scheme and also formulate conditions for the allotment of the land. In the next Board meetings held on 18.9.2008, the amended Masterplan - 2031 of Noida was considered. It was for the first time that the details as to what was expected in the sports city were mentioned. Clause 5.9.3 of the master plan laid down the details of the sports city. On 1.10.2008, and 4.11.2008, the brochure for the sports city was finalised and the process for the change of the land use was initiated. The scheme seems to have been launched and was extended upto 12.1.2009, but was not finalised. Thereafter, in September 2010, the area of the Sports City was changed from 311 hectares to 150 hectares. Grant Thornton was asked to give a fresh detailed project report and thereafter the reserved price was fixed. From 2010-11 to 2015-16, four sports city projects were launched on a total area of 798 acres, in which 3 golf courses, one cricket stadium of international standards, and other sports facilities of international standards were planned. This case pertains to one of those four projects where no development on the sports facility has taken place but the allottees/ builders have already monetized the part of the project that was meant for recovery of cost incurred to build the sports facilities.

B. SPORTS CITY SCHEME 2010-2011

3. As per the formulated scheme, New Okhla Industrial Development Authority[NOIDA]sometime in the year 2011 launched the project of “Sports City” which was to be developed in Sectors 78, 79 and 150 of NOIDA. The scheme was launched on 03.03.2011 and closed on 24.03.2011. As per the scheme, a Sports City was to be developed on a land parcel of 72.75 hectare (7,27,500 sqm) in Sector 78 and 79 and another sports city in Sector 150.

4. The reserve price for the scheme was set at Rs.11,500/- per square metre. The developer was supposed to create sports facilities over 70% of the entire land area, which was not marketable, and to set off this expense in developing the sports city, the developer was allowed to construct group housing on 28% and commercial on 2% of the total land with FAR of 1.5. The scheme clearly stated that the population d