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NOIDA: The Allahabad High Court has mandated the Noida Authority to grant water connections to Wish Town within two weeks, contingent upon Jaypee Infratech Limited (JIL) providing a renewable bank guarantee of Rs 60 crore.
This ruling, issued on Thursday by a division bench consisting of Justices Shekhar B Saraf and Praveen Kumar Giri, also imposed a stay on recovering Rs 23 crore in disputed charges until the next hearing.
The bench was addressing a writ petition from JIL that contested the Authority’s demand for external development charges linked to the supply of treated Ganga water. This dispute traces back to an agreement made on April 7, 2003, between JIL and the then Taj Expressway Industrial Development Authority (now known as YEIDA) for the construction of the 160km Yamuna Expressway connecting Noida and Agra.
As per this agreement, JIL was offered 25 million sqm for development, including Wish Town, which spans several sectors in Noida.
The conflict arises from Clause 7.2.1(j) of the agreement, which specifies that any external development, including water supply, shall be the responsibility of TEA (now YEIDA) without any cost to the concessionaire. For undeveloped land, YEIDA’s responsibilities were limited to assisting “on a best effort basis” at no cost; internal development would be the remit of JIL.
JIL asserted that the obligation to supply water lay with YEIDA, emphasizing that they were only responsible for internal infrastructure. The Noida Authority, however, insisted that JIL should cover the costs of water connections for land released post-agreement. YEIDA clarified that its duty was confined to land previously developed by Noida or Greater Noida.
The situation escalated on March 15, 2023, when the Noida Authority demanded Rs 140 crore from JIL for water and sewer connections, later reducing this to approximately Rs 123 crore.
JIL labeled the demand as “absurd” and “cryptic,” arguing that the charges were incorrectly calculated individually rather than through the bulk policy meant for the entire township. They also pointed out that, according to the concession agreement, external development fees were to be borne by YEIDA.
A further complication arose from a letter sent by YEIDA to the UP government on March 20, 2012, requesting a Rs 60 crore exemption from the charges demanded by Noida Authority; this request is still pending.
Meanwhile, residents of Wish Town have been relying on inadequate and poor-quality groundwater. The court noted the necessity for proper water connections for the health of residents in compliance with National Green Tribunal guidelines. A resident, Rahul Kumar, stated, “We’ve faced severe water supply issues that have worsened. The poor-quality water is damaging our appliances and adversely affecting our skin and hair.”
Pankaj Mishra of Kensington Park shared, “For the past decade, since people began moving here, this issue has persisted. It is high time we received proper treated water.”
The court has accepted JIL’s commitment to provide a Rs 60 crore guarantee from a nationalized bank within one week, which is to be renewed annually. The Noida Authority has also been directed to commence water supply to the township. Additionally, the state government has been instructed to address YEIDA’s 2012 exemption request within 12 weeks.
The High Court clarified that residents and occupants will be required to pay standard water charges once connections are established.
