“Tubewell Water Not Enough”: Allahabad HC Orders Immediate Ganga Supply for Jaypee Residents in NOIDA

A bench of Justice Shekhar B. Saraf and Justice Praveen Kumar Giri was hearing a petition filed by (JIL, challenging NOIDA’s demand notice of March 15, 2023. NOIDA had sought Rs. 139.86 crore related to treated Ganga water supply and sewer connections to the township projects. The demand was later revised to around Rs. 123 crore.

The controversy traces back to clause 7.2.1(j) of a 2003 concession agreement between the then Taj Expressway Industrial Development Authority [now Yamuna Expressway Industrial Development Authority (YEIDA)] and Jaypee’s predecessor, Jai Prakash Industries. The clause stipulated that external development of land parcels already developed in Noida or Greater Noida would be undertaken “without cost to the concessionaire,” while internal development within the township remained the builder’s responsibility.

Appearing for Jaypee, Senior Advocate Shashi Nandan argued that this meant YEIDA was responsible for arranging external development, including water supply, while the developer would only bear internal costs. NOIDA and YEIDA, however, insisted that for lands released after the agreement, external development charges had to be borne by the concessionaire.

Counsel for YEIDA, Senior Advocate Amit Saxena, countered that YEIDA’s liability was limited only to already-developed land, and subsequent parcels fell outside this scope. NOIDA’s Senior Advocate Manish Goel informed the court that the amount payable stood at approximately Rs. 123 crore, even after deductions.

Interestingly, the dispute had been flagged more than a decade ago. In 2012, YEIDA had written to the State Government seeking exemption of Rs. 60 crore from the demand raised by NOIDA. That request is still pending.

Balancing competing claims, the bench devised an interim arrangement. JIL offered to furnish a Rs. 60 crore bank guarantee from a nationalized bank within one week, renewable annually, on the condition that water supply be started immediately. NOIDA agreed to this arrangement, provided the State decides the liability question expeditiously.

Accepting this proposal, the court directed the State Government to decide YEIDA’s 2012 letter after giving all stakeholders including NOIDA, YEIDA, and Jaypee, a fair hearing. The decision must be taken within 12 weeks, the bench ordered, emphasizing the urgency of the matter considering the public health concerns.

“The residents and occupants of the sectors developed by the petitioner are presently using tubewell water, which is not optimum for various purposes. A proper water connection is required for the health of residents and also for regulation as per National Green Tribunal guidelines,” the bench observed.

Until the State decides the matter, the recovery of the balance amount of Rs. 23 crore has been stayed. Once the water connection is made functional, residents will be liable to pay regular water charges in accordance with law, the court clarified.

The case will be next heard on January 12, 2026.

Case Title: Jaypee Infratech Limited vs. New Okhla Industrial Development Authority And 2 Others

Order Date: September 11, 2025

Bench: Justices Praveen Kumar Giri and Shekhar B. Saraf