Lucknow seals Sahara Shaher for lease violations; company appeals

File Photo
File Photo

LUCKNOW: Sahara Shaher, located in Lucknow’s upscale Gomti Nagar, was sealed by municipal authorities on Monday due to alleged lease violations.

Lucknow Mayor Sushma Kharkwal stated, “The decision to seal the premises was made because Sahara authorities breached the terms of their 30-year lease, which expires in 2024.” A team from the municipal corporation, supported by police, executed the sealing.

According to SEBI regulations, Kharkwal mentioned that Sahara India violated the agreement signed in 1994 by failing to construct homes or develop any projects as mandated.

The 170-acre Sahara Shaher land is now under the control of the Lucknow Municipal Corporation (LMC).

On the previous Wednesday, the LMC temporarily paused the sealing process, allowing Sahara authorities a chance to vacate.

“The extension was granted to facilitate the residents of Shaher,” officials noted.

In September, the LMC released a statement detailing the reasons behind the sealing, which was finally carried out on Monday.

“A comprehensive investigation under Municipal Commissioner Gaurav Kumar assessed the 170 acres of land in Ujriyaon and Jiamau villages, revealing violations of the lease agreement,” the statement explained.

Following the inquiry committee’s recommendations and legal advice, the LMC terminated the license agreement for 130 acres designated for residential and commercial development. They also canceled the lease for 40 acres intended for a green belt, according to the LMC statement.

In response, Sahara’s legal team issued a statement contesting the municipal authorities’ claims.

The Sahara India Commercial Corporation Ltd. developed approximately 170 acres in Gomti Nagar based on valid license and lease agreements with the Nagar Nigam, Lucknow. The corporation invested over Rs 2480 crore in development, constructed around 87 buildings, and paid municipal dues exceeding Rs 17.58 crore.

The project proceeded with formal agreements and approvals from the Lucknow Development Authority and Nagar Nigam. However, disputes regarding development arose in 1997, leading to multiple civil suits, with interim protection orders still in effect.

Meanwhile, the corporation has approached the Lucknow bench of the Allahabad High Court to restrict the civic body from interfering with their peaceful possession of the land and properties in Sahara Shaher.

They have challenged the LMC’s orders from September 8 and 11, which canceled the lease and authorized the forcible acquisition of land in Sahara Shaher.

The petition is expected to be heard on Wednesday. It asserts that Sahara developed 170 acres following lease agreements from October 22, 1994, and June 23, 1995, investing over Rs 2480 crore and constructing 87 buildings.

The petition notes prior disputes over land development dating back to 1997, during which the civil court issued a stay order still in effect. Furthermore, an arbitral award in favor of Sahara from September 2, 2017, directed the municipal corporation to execute the lease; however, no action has been taken to date.

The petitioner argues that the municipal corporation’s actions have been arbitrary and illegal, lacking appropriate hearing opportunities, and thus, the contested orders should be annulled.

  • Published On Oct 7, 2025 at 09:04 AM IST

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