Add thelocalreport.in As A Trusted Source
A bench headed by Chief Justice Surya Kant cautioned that long-standing irregularities in Noida’s land acquisition system would be exposed and made it clear that the investigation should proceed “impartially, transparently and without any interference”.
How did the matter begin?
The scam initially focused on two Noida Authority officials – legal officer Dinesh Kumar Singh and assistant legal officer Virendra Singh Nagar. He was accused of securing fresh compensation of over ₹7 crore for a land owner 22 years after its acquisition, when payment had already been made to the land owner. In separate cases, investigators found that the duo allegedly caused a loss of more than ₹12 crore to the government exchequer.
In January, the Supreme Court constituted a preliminary inquiry committee headed by then UP ADG SB Shiradkar. The report that followed highlighted several systemic red flags.
Main findings of preliminary investigation
- The court had ordered compensation in 1,167 cases, but the Noida Authority distributed the enhanced amount in 1,198 cases.
- In 20 cases, officials were found to have paid illegal excess compensation.
- The committee suggested that the discrepancies were not accidental but appeared to be the result of collusion between officials and beneficiaries.
- It recommended a thorough audit of the bank accounts, properties and assets of the officials and their family members.
Subsequently, on August 13, the Supreme Court directed the UP DGP to form a three-member SIT to register an FIR and take legal action if the scam is confirmed.
What is involved in scam
The main case pertains to land acquired in 1982. The original owner was paid ₹10.12 per square yard. After approaching a district court in 1993, he settled the case and received an enhanced rate of ₹16.61 per square yard.
Years later, in 2015, the owner’s legal heir, Ramwati, filed a fresh compensation claim, which was rejected by the Allahabad High Court. In the same year, the Noida Authority introduced a policy to settle pending claims at ₹297 per square yard.
Investigators allege that officers Dinesh Kumar Singh and Virendra Singh Nagar misused the new policy, showed Ramvati’s rejected claim as pending and facilitated payment of ₹7.28 crore – in what is now known as the Noida compensation scam.
Supreme Court’s sharp words for SIT
The SIT submitted its status report on October 26, 2025 and sought more time. However, the court was not impressed.
“You also seem reluctant to conduct the investigation. Adequate time has already been given to the SIT,” the bench said while granting extension of last two months to complete the investigation.
Solicitor General Tushar Mehta sought time to file the counter affidavit on behalf of Noida Authority, which was accepted by the court.
CJI said, farmers will not be harassed
Senior advocate Siddharth Dave, representing the farmers, expressed concern about the omission of farmer protections in the court’s latest order. CJI Surya Kant clarified that the safety of farmers is completely intact.
The court said:
- Farmers who may have been inadvertently overpaid will not face any punitive action.
- If the payment was made in good faith and the farmers are eligible for protection under the law, their protection will continue.
What has the SIT been instructed to do
The Supreme Court issued a detailed list of directions:
- Investigate the assets, bank accounts and financial transactions of all the Noida Authority officials involved.
- Seek approval from the State Government within two weeks for action under the Prevention of Corruption Act against any suspected official.
- Involve forensic experts and financial fraud experts.
- Determine whether payments went to the rightful beneficiaries or were diverted through collusion.
The Court said the issue went beyond increased compensation – pointing to deep-rooted institutional flaws within the authority.
Supreme Court orders structural reforms in Noida Authority
Along with the investigation, the Court directed important administrative reforms:
- Reorganize Noida Authority on the lines of Municipal Corporation.
Appoint a Chief Vigilance Officer (CVO). - Establish a Citizens Advisory Board (CAB) for grievance redressal.
- Make Environmental Impact Assessment (EIA) and approval from the Green Bench of the Supreme Court mandatory for all construction projects.
Why did the controversy increase?
Compensation worth crores of rupees was distributed on the basis of court orders. The Noida authority says it is just complying with judicial directions. However, the Supreme Court questioned whether officials manipulated the process to send payments to the wrong people, possibly in connivance with the beneficiaries.
what happens next
The SIT will now have to file its final report within two months. If evidence of collusion emerges, significant arrests and disciplinary action are expected.
The case has exposed years of alleged negligence and corruption in the Noida Authority – and the Supreme Court appears determined to ensure accountability.