The
Supreme Court on Friday upheld a decision to cancel the allotment of 125 acres
of industrial land in Uttar Pradesh to the Kamla Nehru Memorial Trust (KNMT),
citing lack of due diligence and a failure to uphold “public interest” in the
allocation process.
The
land parcel had been allotted by the Uttar Pradesh State Industrial Development
Corporation (UPSIDC) to the trust in 2003 for floriculture. However, the apex
court found the process unusually swift and lacking proper evaluation.
The
court said that it is necessary that the procedure for industrial land
allotment meet the standards of administrative propriety, particularly in light
of the public trust doctrine mandating that “public resources be managed with
due diligence, fairness and in conformity with public interest.”
The court criticised the manner in which the land
was allotted, stating: “UPSIDC allotted the Subject Land to KNMT within merely
two months of application, raising questions about the thoroughness of the
evaluation. Furthermore, during the pendency of this dispute, UPSIDC
demonstrated remarkable alacrity in considering alternative allotments to M/s.
Jagdishpur Paper Mills Ltd.”
The
125-acre plot is located in the Utelwa Industrial Area of Jagdishpur in
Sultanpur district. In 2017, the Allahabad High Court had ruled to cancel the
allotment, prompting KNMT to appeal the decision.
A
bench of Justices Surya Kant and N Kotiswar Singh dismissed the appeal,
affirming the HC’s judgment.
The state government and UPSIDC have been directed
to re-allot the 125 acres of land through a transparent and fair process that
not only ensures due procedure but also advances broader public goals such as
regional development and environmental sustainability.