The Supreme Court on Monday directed the Ghaziabad Development Authority (GDA) and Sahara India Commercial Corporation Ltd (SICCL) to maintain status quo with regard to the latter’s land acquired by the Uttar Pradesh government for construction of 5,000 houses for economically weaker sections.

The order in effect would mean GDA can’t go ahead with construction on the SICCL’s 52 acres of land and no party can create third party rights on such land. The 52 acres are part of total 91.68 acres meant for the proposed residential township under the name of Sahara City Homes. A vacation bench headed by Justice Deepak Verma while issuing notice to the state government and GDA asked ?the parties to maintain status quo with regard to land which belongs to the petitioners (SICCL and its subsidiaries).? The petition assumes importance as the Supreme Court is set to hear together at least half a dozen cases on July 7 that could change the contours of India?s policy on special economic zones. The outcome of the hearing could set a precedent for SEZ projects, irrespective of which way the court?s decision goes.

Earlier, the apex court had transferred to itself all the petitions against setting up of SEZs pending before various high courts. It will hear acquisition of 25,000 acres of land by Haryana government in favour the Mukesh Ambani-owned Reliance Industries in the National Capital Region, a PIL against acquisition of 2,100 acres of land for setting up a thermal power station by Anil Ambani Group company Reliance Energy in Uttar Pradesh at the cost of Rs 10,000 crore. Besides, another petition filed by Mukesh Ambani group’s Reliance Ventures seeking transfer of the cases pending before the Punjab and Haryana High Court challenging land acquisitions will also be decided.

The Bench will also hear yet another petition filed by Noida Global SEZ Pvt Ltd and Anil Ambani-owned Reliance Energy Ltd seeking transfer of a petition filed by Sohan Pal Sharma challenging acquisition of land by the company for setting up of a SEZ in Noida, Uttar Pradesh. Challenging the Allahabad High Court judgment that upheld acquisition of land, SICCL and eight other developers said that the high court failed to ?discern that the present acquisition of such vast tracts of land in one district was nothing but a land grab on the part of a statutory authority which rather than promoting public interest was wholly contrary to public interest…? They said the land acquisition proceedings purporting to be of urgent nature under Section 17 of the land acquisition Act 1894 was wholly contrary to the state government’s own policy decisions.

According to SICCL, of the total 1463.23 acre acquired by GDA in various villages of Ghaziabad, it had acquired 169.35 acres of land in village Rasoolpur Yakutpur. Of this 169.35 acres, Sahara owns 91.68 acres, the bulk of which (52 acres) was purchased in December 2003, the petition said, adding the entire 169.355 acres sought to be acquired just form part of a ‘land bank’ of 1000 acres. Stating that GDA plans to develop only the balance 500 acres, Sahara senior counsel Abhishek Manu Singhvi and advocate Aarohi Bhalla submitted that Sahara’s 91.68 acres formed part of an earlier proposed acquisition of 1991 which had lapsed on GDA’s failure to deposit the requiste compensation. They argued till date Sahara was in possession of the lands though GDA claimed it took possession of the land on May 18, 2006 and the petitioners had not been even offered compensation for such alleged acquisition of land. Opposing the petitioners, senior counsel ML Verma, appearing for GDA, argued Sahara did not own a single inch and it was creating obstacles.