Allahabad HC Directs UP Govt. and Lucknow Municipal Corporation to File Replies on Sahara Shahar Sealing Case

The Allahabad High Court’s Lucknow Bench on Wednesday directed the Lucknow Municipal Corporation and the Uttar Pradesh government to submit their replies by October 30 in response to a plea filed by Sahara India Corporation Limited challenging the sealing of the Sahara Shahar township in Lucknow.

The bench, comprising Justice Sangeeta Chandra and Justice Amitabh Rai, passed the order after hearing submissions at length from the parties.

The petition filed by Sahara India Corporation contests the sealing of Sahara Shahar, a sprawling 170 acre township located in Lucknow’s Gomtinagar area. The petitioner argued that the sealing order issued by the municipal corporation was arbitrary, sudden, and carried out without adherence to due legal procedure.

It stated that the civic body sealed six entry gates of the complex and took possession of the premises without preparing an inventory of properties, valuables, and records lying within.

According to the petitioner, this action amounted to a violation of procedural safeguards guaranteed under law and the terms of the lease agreement signed with the corporation.

The Sahara group alleged that the authorities had acted in haste without serving a proper notice or giving sufficient opportunity to be heard. The plea urged the court to quash the sealing orders and to direct the authorities to unseal the property pending adjudication.

Appearing for the municipal corporation, counsel submitted that the sealing and possession proceedings were carried out strictly in accordance with law.

It was stated that Sahara India Corporation had violated conditions of the 1994 lease deed and other terms of occupancy. The corporation maintained that notices had been issued to the company in 2020 and again in 2025, warning it of action if the breaches were not rectified.

The municipal authorities argued that despite repeated communications, the company had failed to comply with the conditions, necessitating the sealing to safeguard public property.

After considering both sides, the High Court observed that the matter involved questions of fact and law which required detailed examination. The bench therefore directed the state government and the municipal corporation to file comprehensive replies, with Sahara India Corporation given liberty to file a rejoinder thereafter.

The court also ordered that any livestock found within the sealed premises be shifted to Kanha Upvan, an animal care facility in Lucknow, for proper rehabilitation and maintenance.

Sahara India Corporation has long maintained that Sahara Shahar was developed lawfully over several decades as part of its township project.

The group contends that the land was leased under clear terms that were not violated and that any alleged breach could not justify a total sealing of the property without judicial oversight. It has also claimed that essential services, documents, and business assets have been locked within the premises, severely affecting ongoing administrative and legal work.

The municipal corporation, however, asserts that the company’s use of the property went beyond the sanctioned purposes and that several structures within the township were raised without proper authorisation. It claims that despite repeated opportunities, Sahara did not regularise or rectify the deviations, prompting the civic body to initiate sealing proceedings.

The sealing operation was carried out under supervision of senior officials, who contend that due opportunity of hearing was provided before the final decision.

The dispute over Sahara Shahar has attracted public attention due to the scale of the property and the ongoing regulatory scrutiny surrounding Sahara Group entities.

While the current plea concerns municipal action, the outcome could influence how leasehold rights and property compliance are interpreted in large-scale private developments. 

The matter is also likely to involve interpretation of clauses within the 1994 lease deed between Sahara and the Lucknow Nagar Nigam. The reply from the state government and municipal authorities is expected to clarify the official position on alleged lease violations and the legal justification for sealing.

For now, the High Court’s directive ensures that no further precipitative action is taken until the matter is heard in full.

The next hearing is likely to take place after the replies are filed by October 30. The outcome will determine whether the sealing remains in force or if the court grants interim relief to the Sahara group.

Case Title: Sahara India Corporation Limited v. Lucknow Municipal Corporation and State of Uttar Pradesh

Bench: Justice Sangeeta Chandra and Justice Amitabh Rai

Date of Order: October 8, 2025