NOIDA: The UP Industries Department has drafted a proposal for the establishment of a metropolitan corporation in Noida, pending consideration by the state council of ministers. This initiative would necessitate legislative changes, marking a significant shift in Noida’s governance.
At present, Noida is administered by the New Okhla Industrial Development Authority (Noida Authority), established in 1976 under the Uttar Pradesh Industrial Area Development Act, functioning as an industrial township without a municipal corporation. The governance of notified areas solely rests with the Noida Authority.
This proposal stems from a Supreme Court order issued in August of last year, following a recommendation from a state-appointed special investigation team (SIT). The SIT, formed to investigate a land compensation scam involving the Noida Authority, emphasized the need for a metropolitan corporation in its report.
The industrial development department’s note highlighted Noida’s foundation for promoting organized industrial, residential, and commercial growth, along with attracting investment and entrepreneurship. However, it warned that transitioning to a metropolitan corporation might impact investor confidence, as the Industrial Area Development Act does not accommodate civic bodies, necessitating legislative amendments to align with the Supreme Court’s directives.
Most consulted departments, including urban development, revenue, planning, and housing, did not raise objections and left the ultimate policy decision to the cabinet. However, the law department noted constitutional challenges, indicating that municipalities are not mandatory in areas like Noida as per Article 243Q of the Constitution, which prohibits the formation of such entities in governor-notified townships. Additionally, Section 12-A of the 1976 Act prohibits panchayats in industrial townships. The finance department clarified that any costs from establishing a metropolitan corporation will be covered by the Noida Authority, with no impact on the state’s budget.
The Supreme Court’s directive was based on the SIT’s critical findings, which pointed out centralized decision-making among a few officials, weak oversight, preferential land allotment policies, and a lack of transparency. The SIT identified 20 cases of excess compensation payments, totaling around Rs 118 crore, to landowners, and called for an investigation into the assets of implicated officials and their relatives.
With urban development on the rise, the SIT argued for a comprehensive reform in Noida’s governance structure to enhance services like waste management, public transport, and infrastructure upkeep. The report proposed a corporate structure with elected ward representatives to ensure local residents’ concerns are integrated into decision-making.
The UP chief secretary has been directed by a bench of Justices Surya Kant and Joymalya Bagchi to present the proposal for converting Noida into a metropolitan body before the council of ministers in light of the SIT’s recommendations.
The court order issued on August 13, 2025, emphasized the necessity for transparency and local engagement in NOIDA’s operations, acknowledging the policy-related implications of transitioning to a Metropolitan Corporation. Following a review of the SIT report and departmental feedback, the Industrial Development Minister, Nand Gopal Gupta Nandi, approved the note for consideration by the council of ministers.
