Supreme Court Orders Independent Judicial Committee to Resolve Long-Pending Flat Allotment Fraud and Stalled Housing Project—GNIDA Directed to Assist Inquiry

Case Name: Ravi Prakash Srivastava & Ors. v. State of Uttar Pradesh & Ors.
Citation: 2025 INSC 1291; SLP (C) Nos. 9792/2017 & 15548/2017
Date of Judgment/Order: 07 November 2025
Bench: Hon’ble Mr. Justice Vikram Nath & Hon’ble Mr. Justice Sandeep Mehta

Held: The Supreme Court held that the massive fraud, diversion of funds, multiple allotments, fake flats, cancelled GNIDA lease, and the two-decade stagnation of the Shivkala Charms Housing Project require a comprehensive independent fact-finding process that cannot be satisfactorily resolved within the confines of Article 136 proceedings. The Court criticised GNIDA for its persistent non-cooperation, observed that the original allottees had suffered for nearly 20 years, and concluded that only an independent, judicially supervised committee could verify genuine claims, examine feasibility of partial lease restoration, determine proportional dues, and propose a workable plan for completing the stalled towers.

Summary: The petitioners, original allottees of a cooperative housing project in Greater Noida, were defrauded after the cooperative society (GCSAS) and developer siphoned funds, made multiple allotments of the same flats, and even created fictitious flats. GNIDA cancelled the land lease in 2011 for non-payment, causing the project to collapse. Over the years, numerous homebuyers approached authorities, courts, banks, and GNIDA, resulting in criminal proceedings, cooperative inquiries, and extensive litigation. The Supreme Court monitored the matter through multiple interim orders, verified dozens of claims through the Housing Commissioner, evaluated structural audit reports, and considered proposals from groups of allottees willing to self-fund completion of individual towers. However, GNIDA repeatedly failed to file a feasible plan or cooperate with revival efforts, creating an administrative impasse. Given the complexities involving fraudulent allotments, unverified claims, structural issues, unpaid lease dues, and interlocking rights of hundreds of homebuyers, the Court held that an independent judicial committee was essential to protect genuine allottees and revive the project lawfully.

Decision: The Supreme Court appointed Hon’ble Mr. Justice Pankaj Naqvi (Retd.) as a one-member independent committee to conduct a full inquiry, identify genuine allottees, explore partial or full lease restoration with GNIDA, determine proportional dues, and formulate a comprehensive plan for completing the four-tower project, including possible auction of unclaimed towers. All authorities—including GNIDA, UP Awas Evam Vikas Parishad, district administration, and all lending banks—were directed to fully cooperate, while allottees were instructed to share costs and submit claims. The Committee was given four months to submit its report in sealed cover, and the matter was listed for further consideration in March 2026.