The Supreme Court on Tuesday extended by two months the time granted to the Special Investigation Team (SIT) probing allegations of inflated compensation paid to landowners in NOIDA.

A Bench comprising CJI Surya Kant and Justices Ujjal Bhuyan and NK Singh was hearing the matter, which stems from an anticipatory bail plea filed by a NOIDA law officer amid allegations that certain landowners were granted compensation far beyond what they were entitled to receive.

Earlier, the Court had directed a preliminary inquiry into claims of excessive payments and alleged collusion between officials and beneficiaries.

Appearing for the NOIDA Authorities, Solicitor General Tushar Mehta sought additional time to file a counter affidavit.

The Bench was informed that the SIT had filed a status report and requested an extension to complete the investigation. Responding, the CJI said, “Tell them to finish in two months or so; they are asking for three months. Sufficient time has already been given.”

Senior Advocate Siddharth Dave, representing the intervening farmers, submitted that earlier protection granted to farmers was omitted in the most recent order constituting the new SIT.

Assuring continued protection, the CJI clarified that farmers would not suffer if the payments were made mistakenly. “If it is by mistake, you are entitled to protection in law,” he said.

He further emphasised that the SIT has complete freedom to investigate and must submit its findings to the Court.

Granting the extension, the Court said:
“Status report dated 26.10.2025 filed by the SIT is taken on record. We appreciate the steps taken so far… We hope the SIT will bring the investigation to its logical conclusion. In view of the prayer for extension, two additional months are granted. Latest status report to be filed… interim directions to continue.”

The NOIDA Authorities were also permitted to file an additional affidavit.

Separately, the Court had earlier barred project development in NOIDA without an Environmental Impact Assessment and approval from the Supreme Court’s green bench. A new SIT of three IPS officers had been constituted in August to address expanded concerns.

Background

The SIT probe was first ordered in January this year. In August, the SIT reported that 20 cases involved excessive compensation. Enhanced compensation was paid in 1198 cases, despite specific court directions covering only 1167 matters. It also named certain NOIDA officials linked to the 20 problematic cases.

To determine possible collusion between officials and landowners, the SIT said it was necessary to scrutinise bank accounts of officers and their families, old records, and financial assets acquired during the relevant period. It recommended an independent specialised agency to examine disproportionate assets and financial flows.

On NOIDA’s functioning, the report noted that although recent initiatives are noteworthy, the authority remains “reactive” rather than proactive. Residents reported delays and poor grievance redressal. The governance model centralised power among a small group, lacked transparency, and made key decisions with limited public oversight. Policies of the land allotment committee were also viewed as favouring developers.

The SIT recommended replacing the current structure with a metropolitan corporation, appointing a Chief Vigilance Officer, framing codified powers through a High Court-monitored committee, conducting regular third-party audits, holding periodic public meetings, constituting a citizen advisory board, and ensuring mandatory EIAs for projects.

Taking note of the report, the Court constituted a fresh SIT of three IPS officers in August and enlarged its scope.

On August 13, the Bench issued detailed directions including:
(i) constitution of the SIT under the UP DGP;
(ii) immediate registration of preliminary inquiries with assistance from forensic experts and the Economic Offences Wing;
(iii) registration of FIRs if cognizable offences were found;
(iv) submission of status reports by an officer of Commissioner rank;
(v) mandating transparency reforms and citizen-centric mechanisms in NOIDA, including appointment of a CVO, constitution of a citizen advisory board within four weeks, and ensuring no project proceeds without prior EIA and approval by the green bench;
(vi) directing competent authorities to grant sanction for prosecution within two weeks where required.

Case Title: VIRENDRA SINGH NAGAR v. STATE OF UTTAR PRADESH & ANR., SLP (Crl) No. 1251/2023