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Synopsis

The Supreme Court has directed a "fact finding committee" formed by the Uttar Pradesh government to immediately look into records of the Noida authorities and submit a report within two weeks with regard to allegations of illegal payment of huge sums of money as compensation to landowners without any entitlement.

The top court, however, emphasised the need for a "fair and independent probe" into the matter while stating that there were numerous cases of such nature that could not be done at the instance of one or two officers. "Prima facie, the entire Noida setup appears to be involved", court opined. 

A bench of Justices Surya Kant, Dipankar Datta and Ujjal Bhuyan ordered the committee named as "SIT" to file its report within two weeks to the court.

"It is made clear that no further time shall be granted for the said purpose," the bench said.

The bench also said, "After perusal of the report to be produced before this court, the desirability of issuing directions for an independent and fair investigation will be considered on the next date of hearing".

The court fixed the matter for further consideration on November 2, 2023.

The Additional Advocate General, appearing on behalf of Uttar Pradesh, submitted that a committee comprising three officers, which included one police officer in the rank of Additional Director General of Police, Meerut Zone, had been constituted to examine the cases where the New Okhla Industrial Development Authority might have illegally paid compensation in collusion and connivance with the officers of NOIDA and the beneficiaries. 

"Though the said committee has been nomenclatured as 'SIT’ but it appears to us that it is essentially a Fact Finding Committee," the bench said.

On September 14, 2023, the state government had sought time to seek instructions in the matter.

Hearing a plea for pre-arrest bail by one Virendra Singh Nagar, the court came across an FIR against two officers of Noida and one land owner to whom the compensation to the tune of Rs 7,26,80,427 was alleged to have been wrongly paid without any entitlement, in furtherance of a criminal conspiracy.

The FIR was registered with Police Station Sector-20, Noida, District Gautam Budh Nagar, Uttar Pradesh, under Sections 420, 467, 468, 471, 120B IPC and Section 13(1)(a) of the Prevention of Corruption Act, 1988.

"During the course of hearing, it transpires that the reported case is not the sole instance and there are numerous cases in which the New Okhla Industrial Development Authority has paid compensation to the land owners, without any entitlement in law, prima facie for extraneous considerations," the bench said.

In strong observations, the bench said, "In our considered view, it cannot be done at the instance of one or two officers of the Authority. Prima facie, the entire Noida set up appears to be involved. In such circumstances, it appears to us necessary to refer the matter to some independent agency for a deeper probe and to unearth the truth".

Case Title: VIRENDRA SINGH NAGAR V. STATE OF UTTAR PRADESH & ANR.