DNA Explainer: How a 7,400 sq m plot shook the foundation of Noida’s most famous mall

A compensation of Rs 235 crore brought a 17-year-old legal battle to resolution, one which became a massive alarm for Noida Authority and the famous Mall of India. The mall by real estate developer DLF is a popular landmark in the NCR city and is thronged by thousands every day. 

Built in an area of 1.85 lakh sq m in Noida’s Sector 18 is one of the biggest malls in Delhi NCR region. A legal case by one man over the land on which it was built saw Noida Authority face defeat in the apex court. Now, the man will be paid Rs 235 crore and a recent Supreme Court order has directed Noida authority to ensure he is duly compensated by DLF.  Here’s all you need to know about the case.

How a 7,400 sq m plot shook the foundation of Noida’s most famous mall

In 1997, a person named Veeranna Reddy purchased two plots totalling Rs 7,400 sq m in Noida’s Chhalera Bangar for Rs 1 crore. In 2005, the Authority purchased the land from Reddy who later claimed that the acquisition was “unfair”. Since then, he has been in a long legal battle with the authorities who later sold the land to DLF which constructed the mall. 

It has also been alleged that the person was harassed by authorities over possession of the land. The person filed a civil suit against Noida Authority in a local court. The Authority had argued that Reddy’s possession was illegal as the area had been included in a commercial development plan. However, the court ruled in favour of Reddy, blocking any interference in the land with him. 

The authority issued the official notification for acquisition and possession of the contentious land in 2006. This notification was challenged by Reddy. Authority had argued that it was impossible to fix boundaries in the land in the area as a lot of development had occurred. 

A long legal tussle ensued and Reddy finally won the case in 2021 as the Authority was ordered by the Allahabad High Court to get compensation paid. The decision was challenged in the Supreme Court. However, the top court ruled in favour of Reddy, ordering compensation at the rate of Rs 1.1 lakh per sq m ALONG WITH consolation amount at 30 percent, 3 percent as punishment and interest at a rate of 15 percent. 

A review petition by Noida Authority was rejected by SC on August 10 leaving it with no other choice to compensate Reddy. The Authority recently issued a notice to DLF to pay Rs 235 crore compensation to the contentious land’s previous owner in 15 days.

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