The Comptroller and Auditor General of India (CAG) has exposed serious lapses in the Greater Noida Industrial Development Authority’s (GNIDA) allotment of farmhouse plots, citing violations of environmental laws, financial mismanagement, and revenue losses running into hundreds of crores. The report raises critical concerns about GNIDA’s failure to safeguard the Hindon river floodplain, a protected ecological zone where construction was expressly prohibited.
Allotment Under Two Schemes
The audit examined two schemes launched by GNIDA — the Institutional Farm Houses Scheme (2011) and the Krishi Farm Houses Scheme (2015). Both were originally intended to preserve green buffers and support controlled agricultural use. Instead, the CAG found that the authority not only ignored government restrictions on floodplain construction but also allowed encroachments and permanent structures in designated conservation areas.
Under the Institutional Farm Houses scheme, three large plots spanning more than 330 acres were allotted to SDS Infratech Pvt Ltd, Gaursons India Ltd, and Gaursons Hi-tech Infrastructure Ltd. The allotments, priced at ₹371.64 crore, soon ran into controversy as developers defaulted on payments, accumulating dues of ₹597.6 crore. One allotment was even cancelled in 2017 due to non-payment of ₹204 crore, but litigation has stalled recovery.
Despite such defaults, GNIDA permitted developers to mortgage these plots and raise loans — a practice the Supreme Court has previously condemned as evidence of collusion between builders and authorities.
Widespread Violations in Krishi Farm Houses
The Krishi Farm Houses scheme, meant for farmers whose land had been acquired for development projects, offered smaller plots of 4,000–10,000 square metres. These were to be used for agriculture, with only temporary structures allowed.
Instead, the CAG found rampant violations. Permanent houses, shops, workshops, and even polluting industrial units were built on these plots. In Haibatpur village, some plots were located barely 130 metres from the Hindon river, violating planning norms. The Regional Plan 2021 had clearly classified the floodplain as a Natural Conservation Zone, where construction was limited to just 0.5% of the total land area.
Satellite images and field surveys conducted in 2019 confirmed large-scale encroachment and illegal construction. Dense residential settlements, commercial activity, and garages had mushroomed in areas meant to remain green. The violations became so severe that GNIDA scrapped the scheme altogether, offering refunds with 4% interest. Between January 2020 and March 2021, refunds for eight of nine allottees were processed.
Environmental and Land Management Failures
The CAG report also stressed that GNIDA’s actions blatantly disregarded government orders issued in March 2010, which had explicitly prohibited floodplain construction and required authorities to clearly mark such zones in master plans.
Instead of protecting fragile ecosystems, GNIDA facilitated their exploitation, leading to degradation of the Hindon floodplain and loss of green cover in the NCR. Adding to the irregularities, the authority even allotted plots without securing clear land ownership. In one case, 17,568 square metres of land in FH-03 had not been acquired when it was allotted, complicating accountability and possession.
Government Response
At an audit exit conference in January 2021, the Uttar Pradesh government accepted the findings and promised corrective measures. These included revising allotment guidelines, recovering outstanding dues, and restoring the Hindon floodplain.
Vinod Kumar, GNIDA’s General Manager, confirmed that the authority would tighten procedures in line with CAG recommendations and prevent further violations.
Conclusion
The audit exposes systemic failures in GNIDA’s land management and environmental oversight. By permitting allotments in ecologically sensitive zones, allowing illegal construction, and overlooking financial defaults, the authority not only incurred massive revenue losses but also compromised critical environmental safeguards.
