In a setback to the Mayawati government in the Noida land acquisition row, the Allahabad High Court today quashed notification of land in three villages of Gautam Buddh Nagar district and ordered that similarly affected farmers of other villages be given higher compensation.

Raising questions over UP government's land acquisition policy for development of Greater Noida and Noida extension areas, the court directed the Chief Secretary of the state to conduct an inquiry into the "change of land use".

It also restrained authorities from undertaking any further construction without getting due approval from the National Capital Region Planning Board.

The ruling will hit thousands of flat buyers in the three villages of Asdullapur, Yusufpur Chak Shaberi and Devla.

The judgement was passed by a specially-constituted three-judge bench comprising justices Ashok Bhushan, S U Khan and V K Shukla, which had reserved its order on a total of 491 petitions, which were clubbed together, on September 30.

In its 400-page-long order, the court allowed the petitions of farmers of villages Asdullapur, Yusufpur Chak Shaberi and Devla, holding that the notifications whereby land in these villages was acquired, be quashed and "the petitioners shall be entitled to restoration of their land subject to to deposit of compensation which they had received under agreement/award before the authority/Collector".

The court also granted relief to farmers of other villages, observing that "they shall be entitled to payment of additional compensation" which could be up to "64.70 per cent of the compensation paid earlier" and that payment of the same shall be "ensured by the Authority (Noida/Greater Noida) at an early date.

"It may be open for the Authority to take a decision as to what proportion of additional compensation be asked to be paid by allottees", the court said with regard to the land that had been acquired in the name of "planned industrial development" but was later sold to private builders for the construction of residential complexes.

The court also made it clear that "those petitioners who have not yet been paid compensation may be paid compensation as well as additional compensation as ordered above.The payment of additional compensation shall be without any prejudice to rights of land owners".

Besides, the court added, "all the petitioners shall be entitled to allotment of developed abadi plot to the extent of 10 per cent of their acquired land subject to maximum of 2500 square metres.

"We, however, leave it open to the Authority in cases where allotment of abadi plot to the extent of 6 per cent or 8 per cent have already been made, either to make allotment of the balance of the area or compensate the land owners by payment of the amount equivalent to balance area as per average rate of allotment made of developed residential plots".

"The Authority may also take a decision as to whether benefit of additional compensation and allotment of abadi plot be also given to those land holders whose earlier writ petitions challenging the notifications have been dismissed and those land holders who have not come to the court", the court said.

Moreover, "the Greater Noida authority and its allottees are directed not to carry on development and not to implement the Master Plan 2021 till the observations and directions of the National Capital Region Planning Board are incorporated in the Master Plan", the court said.

"We, however, make it clear that this direction shall not be applicable in those cases where the development is being carried on in accordance with the earlier Master Plan of Greater Noida, duly approved by the National Capital Region Planning (NCRP) Board", the court added.

Disapproving of the manner in which land was acquired by invoking the urgency clause in the name of "planned industrial development", the court said, "We direct the Chief Secretary of the state to appoint officers not below the level of Principal Secretary (except officers of Industrial Development Department who have dealt with relevant files) to conduct a thorough inquiry".

The inquiry shall be "regarding the acts of Greater Noida Authority in proceeding to implement Master Plan 2021 without approval of NCRP Board, decisions taken to change the land use, allotment made to the builders and indiscriminate proposals for acquisition of land", the court said, adding "thereafter, the state government shall take appropriate action in the matter".

Reacting to the ruling, a lawyer representing the farmers said, "There was a kind of a mafia working in collusion with the officials of the authority because the manner in which they had taken land was unfair".

"I have all sympathy with the investors, but the Supreme Court has said the dispute is purely between the farmers and builders," he said.

Surender Yadav, a farmer whose land in Itara village would fetch him compensation said, "We are not satisfied with this order. There is nothing new in it. We would have anyway got this deal two-three months back. If they don't scrap it, we will go to the Supreme Court".

While quashing notifications of land acquisition in Dewla, Yusufpur Chak Shahberi and Asdullapur, the court noted that in these villages, neither any "third party rights" had been created nor any compensation was awarded and even in cases where compensation was given, it was done so after the petitioners had moved the court.

The court also noted that in the case of village Dewla, where notifications for acquiring land were issued in 2009, the petitioners "claim to be running industry over their land, whose land use has now been changed in the sector plan which is not industrial.Meaning that the industries, as per land use of the area have to be closed".

"When the object of the Uttar Pradesh Industrial Development Area Act is itself industrial development, what purpose shall be served in shutting down the running industries, has not been explained", the court remarked, while allowing the petitions filed by farmers from the village.

Similarly, while quashing the acquisition of land in village Yusufpur Chak Shahberi, the court said, "Neither any third party rights have been created in the village nor any substantial development has been made in the acquired area and the award have been given on 14.09.2011, i.e, much after filing of this writ petition and hearing this writ petition had begun".

About Asdullapur, the court observed "no tenure-holder has accepted compensation, no award has been made and no third party rights have been created".