NOIDA: The Allahabad High Court will continue its hearings regarding the Rs 295-crore Reddy Veeranna land compensation case on October 6. In July, the Supreme Court annulled the payout, deeming it fraudulent, as it found that the Hyderabad-based businessman misled the courts to secure an inflated compensation for a property in Noida’s Sector 18.
The case is set to be heard by a bench comprising High Court Chief Justice Arun Bhansali and Justice Kshitij Shailendra.
At the center of the case is over five bighas of land in Chhalera Banger village, which was jointly purchased in 1997 by Veeranna, Vishnu Vardhan, and T. Sudhakar for Rs 1 crore. In 2005, the Noida Authority partially acquired this land, later leasing it to DLF for Rs 173 crore, where the Mall of India now stands.
Initially, all three co-owners contested the acquisition together. However, in 2006, Veeranna secured a compromise decree from a trial court using a revoked power of attorney that allowed him to be recognized as the sole owner in revenue records.
In 2019, Veeranna sought enhanced compensation from the High Court without including his co-owners in the case.
The High Court awarded him compensation of Rs 1.1 lakh per sqm in October 2021.
The Supreme Court upheld this order and eliminated a 50% development charge that had been deducted, raising Veeranna’s total entitlement to about Rs 360 crore. The final payout was settled at Rs 295 crore after discussions with the Authority. However, the Supreme Court clarified that it was not making a determination on ownership.
In 2023, Vardhan challenged Veeranna’s claims in the Supreme Court, arguing that Veeranna misled both the High Court and Supreme Court using an invalid decree obtained through manipulation and nondisclosure.
The Supreme Court, in its ruling, noted that Veeranna had “tailored a situation to suit his convenience” by deliberately excluding his co-owners.
On July 23, a three-judge bench of justices Surya Kant, Dipankar Datta, and Ujjal Bhuyan overturned previous rulings, stating, “The impugned order of the High Court dated October 28, 2021, in WP (Civil) 2272/2019 [Reddy Veeranna v State of Uttar Pradesh & ors] is set aside, as fraud has undermined the entire proceedings. Consequently, the judgment and order dated May 5, 2022, in Reddy Veeranna (supra), also obtained through fraud, is declared null and is recalled in the exercise of our inherent powers.”
The Supreme Court has sent the case back to the High Court for a fresh hearing regarding ownership and compensation, ensuring all parties, including Vishnu and Sudhakar, are present.
Due to the “magnitude of fraud,” the Supreme Court has requested the “Chief Justice of the High Court to oversee the division bench to expedite the decision on the writ petition, preferably by year-end, depending on the convenience of the bench.”
It has clarified that questions regarding compensation remain open, stating: “All questions on merits, except those decided in this judgment, including the re-evaluation of fair and just compensation for the acquired land and its apportionment, are kept open for discussion before the High Court.”
For now, Veeranna has retained the compensation amount and provided property securities worth Rs 295 crore through his firm, Manyata-Pristine. The Supreme Court’s interim order allows these securities to remain with the court until the High Court resolves the matter.
The outcome of the rehearing will not only determine the rightful share of compensation among the three co-owners but may also affect DLF, which previously received a Rs 235-crore demand notice from the Noida Authority related to the payout before retracting its challenge.
