Lucknow civic body seals Sahara Shaher for violation of lease norms; company moves Allahabad HC

Lucknow, Oct 6 (PTI) The Sahara Shaher in Lucknow's posh Gomti Nagar that once dazzled with glitterati was sealed by municipal authorities on Monday for alleged violation of lease norms.

"We decided to seal the premises as the Sahara authorities violated the 30-year lease that expired in 2024," Lucknow mayor Sushma Kharkwal told PTI even as a municipal corporation team assisted by a large police force carried out the sealing exercise.

As per SEBI rules, the mayor said the Sahara India, with whom the lease pact was inked in 1994, "violated norms by neither building houses, nor developing any projects or carrying out several other tasks they were meant to carry out".

She added that the 170 acres of Sahara Shaher land was now in the possession of the Lucknow Municipal Corporation (LMC).

Last Wednesday, the LMC team halted the sealing proceeding and gave time to the Sahara authorities to vacate the premises.

"That extension was given to them on request that sometime be allowed to those residing inside the Shaher to vacate the premises," officials said.

In September, the LMC issued a detailed statement giving reasons for the exercise that after some delay was carried out on Monday.

"A detailed investigation cum review under Municipal Commissioner Gaurav Kumar, was carried out on 170 acres of land located in Lucknow's Ujriyaon and Jiamau villages. The investigation found that the terms of the license agreement and lease deed were violated," the statement read.

Based on the recommendations of the inquiry committee and legal opinion, the LMC cancelled the license agreement for 130 acres of land for residential and commercial purposes. The lease deed for 40 acres of land previously acquired for developing a green belt was also cancelled, the LMC statement read.

In response, the Sahara's legal team put out a statement, rebutting the stand of municipal authorities.

The Sahara India Commercial Corporation Ltd., developed approximately 170 acres of land at Gomti Nagar, Lucknow, pursuant to duly executed licence and lease agreements with Nagar Nigam, Lucknow.

The corporation invested more than Rs 2480 crore in the development and raised about 87 residential/commercial buildings, apart from paying full consideration, lease rentals and municipal dues including house tax exceeding Rs 17.58 crore, it said.

The project was undertaken under formal agreements, with approval of layout plans and revised land use by the Lucknow Development Authority and Nagar Nigam. However, disputes arose on developments, leading to multiple civil suits in 1997'“98, wherein interim protection orders were granted and remain operative, read the statement by Sahara's legal team.

Meanwhile, the corporation moved the Lucknow bench of Allahabad High Court seeking restriction on civic body from making any interference in the peaceful possession of the group on its land and properties in Sahara Shaher.

They have also challenged the LMC's orders issued on September 8 and 11 whereby it cancelled the lease deed and ordered for taking forcible possession of land in Sahara Shaher.

The petition is likely to come up for hearing on Wednesday.

In the petition, Sahara has said that it developed about 170 acres of land at Gomti Nagar pursuant to lease agreements with MC executed on October 22, 1994 and June 23, 1995. It invested more than Rs 2480 crores in the development of the land and raised about 87 residential and commercial buildings.

The petition stated that some dispute had arisen in 1997 regarding development of land.

Thereafter, Sahara had moved the civil court which granted stay order in its favour and it is still operative. Meanwhile, in an arbitral proceedings, the arbitral award was passed in favour of Sahara on September 2, 2017 and MC was directed to execute the lease of the land in its favour but till date MC has done nothing towards execution of the lease, though the arbitral award stood final and hence Sahara has filed execution proceedings before the competent court which is pending.

Meanwhile, without affording proper opportunity of hearing, the MC has proceeded to forcibly take the possession of the land in Sahara Shaher, the petitioner stated.

"The action of the MC is arbitrary and illegal and without affording proper opportunity of hearing and hence the impugned orders are liable to be set aside," pleaded the petitioner. PTI NAV/MAN/KIS NB NB