CAG Flags Irregularities in Greater Noida Farmhouse Plot Allotments

The recent audit findings of the Comptroller and Auditor General (CAG) have exposed major lapses in land management and environmental compliance in the National Capital Region (NCR). The report titled CAG flags irregularities in Greater Noida farmhouse plot allotments highlights how the Greater Noida Industrial Development Authority (GNIDA) not only overlooked its responsibility to safeguard floodplains but also actively facilitated the misuse of land through questionable allotment practices. From revenue losses amounting to hundreds of crores to violations of ecological safeguards, the revelations underline systemic flaws in planning and governance.

Background of the Farmhouse Schemes

The controversy primarily revolves around two major land schemes introduced by GNIDA:

1. Institutional Farm Houses Scheme (2011):
   This was designed to preserve open spaces and encourage agricultural use. Developers were allowed to sub-lease smaller farmhouse plots for activities such as dwelling units, swimming pools, nurseries, and dairy farming.
2. Krishi Farm Houses Scheme (2015):
   Rolled out to compensate farmers whose land had been acquired for development projects, this scheme offered smaller plots for cultivation of fruits, vegetables, and medicinal plants. Only temporary structures were permitted on these lands.

In principle, both schemes sought to balance urban development with ecological preservation. In practice, however, the CAG report reveals that these schemes became a vehicle for unauthorized housing colonies, commercial activities, and large-scale misuse of agricultural plots.

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CAG’s Key Findings

The audit report makes several disturbing observations:

• Revenue Losses: GNIDA suffered a financial setback of nearly ₹645 crore due to irregular allotments and defaults by developers.
• Developers Involved: Massive plots were allotted to major players such as SDS Infratech Pvt Ltd, Gaursons India Ltd, and Gaursons Hi-tech Infrastructure Ltd. In many cases, these developers defaulted on payments, with dues amounting to several hundred crores.
• Floodplain Violations: Farmhouse plots were allotted as close as 130 to 550 meters from the Hindon River, blatantly ignoring floodplain restrictions.
• Encroachments and Misuse: Lands intended for agriculture and temporary structures were converted into permanent houses, shops, workshops, and other commercial establishments.

The findings indicate that instead of safeguarding natural conservation zones, the authority compromised environmental integrity for short-term revenue generation.

Illegal Constructions and Environmental Breaches

The CAG report highlights a clear disconnect between planning norms and execution.

• Regional Plan 2021 Violations: The Hindon floodplain was categorized as a Natural Conservation Zone (NCZ), which only allowed 0.5% construction. Yet, GNIDA approved plots with extensive permanent structures.
• State Orders Ignored: Government directives issued in 2010 explicitly prohibited construction on floodplains. Despite this, approvals continued.
• Satellite Imagery Evidence: Verification in 2019 exposed widespread illegal occupation on Krishi Farm House plots. Dense clusters of permanent residences, garages, kiosks, and shops were found in place of the permitted green activities.

These breaches not only threaten the ecology of the Hindon but also set a dangerous precedent for urban planning in NCR.

Financial Mismanagement and Loan Irregularities

One of the most striking revelations in the audit was the scale of financial mismanagement:

• Developers collectively defaulted on dues worth more than ₹597 crore.
• Despite outstanding payments, GNIDA allowed developers to mortgage allotted plots to raise funds, an action earlier criticized by the Supreme Court as a form of collusion between authorities and builders.
• In one case, a plot allotted to SDS Infratech was cancelled in 2017 due to unpaid dues of ₹204 crore, but the dispute remains tied up in litigation.
• For farmers under the Krishi Farm Houses scheme, refunds were processed with 4% interest for some allottees, though the damage to land and ecology had already been done.

This mismanagement raises serious concerns about transparency and accountability in GNIDA’s functioning.

Government Response to CAG Audit

The Uttar Pradesh government acknowledged the findings during the audit exit conference in January 2021. Officials assured corrective action, including:

• Reviewing the farmhouse schemes for compliance with planning norms.
• Initiating steps to recover outstanding dues from defaulting developers.
• Strengthening allotment guidelines to prevent further misuse of ecologically sensitive land.

Vinod Kumar, General Manager of GNIDA, also confirmed that the authority would take measures to restore the Hindon floodplain and improve regulatory oversight.

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Implications of the Audit Findings

The fact that the CAG flags irregularities in Greater Noida so strongly carries wider implications for urban governance in NCR:

• Erosion of Trust: Such irregularities undermine public confidence in development authorities.
• Environmental Risks: Encroachments on floodplains heighten flood risks and disrupt ecological balance.
• Real Estate Credibility: Mismanagement affects Greater Noida’s reputation as an investment destination.
• Need for Policy Enforcement: Stronger checks, transparent procedures, and strict enforcement are necessary to prevent similar issues in the future.

Conclusion

The revelations from the CAG audit present a sobering picture of how planning schemes can be derailed by mismanagement and collusion. The fact that CAG flags irregularities in Greater Noida farmhouse allotments underscores both financial and environmental consequences of weak governance. While the Uttar Pradesh government has promised corrective measures, the larger lesson lies in ensuring accountability, stricter monitoring, and stronger ecological safeguards.

If effectively implemented, these reforms could not only restore the Hindon floodplain but also help rebuild public confidence in urban planning across Greater Noida and the wider NCR.

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