The Allahabad High Court has stayed a Uttar Pradesh government order that had approved interest waivers and other concessions for the long-delayed Sunworld City township project spread across 414,000 sq metres in Sector 22D along the Yamuna Expressway. The interim stay was granted by Justice Arun Kumar on December 3, following a petition filed by the Yamuna Expressway Industrial Development Authority (YEIDA) challenging the state government’s July 2, 2025 decision.
The stay came after YEIDA approached the court arguing that the state government had extended relief to the developer in violation of earlier judicial directions and without resolving the underlying land disputes that have plagued the project for over a decade.
YEIDA’s petition contended that the government, acting under Section 41(3) of the UP Urban Planning and Development Act, 1973, had ignored the High Court’s 2012 interim order related to the same project. In that earlier ruling, the court permitted Sunworld to execute a lease deed only upon meeting certain conditions and offered the option of proceeding with either the complete land allotment or only the undisputed portion.
YEIDA argued that despite the project’s long-standing disputes, including incomplete land acquisition and pending dues, the government proceeded to grant major concessions. It said the order directed execution of leases “notwithstanding unresolved disputes” and declared the entire period since 2012 as “zero period”, waiving penal interest, extension charges and related dues.
Responding to the stay order, Sanjiv Gupta, promoter of Sunworld City, said the developer had suffered for years due to YEIDA’s inability to hand over the full extent of land allotted in 2010. “We have suffered for the last 14 years because the YEIDA failed to give us the possession of the 151,000 square metres (sqms) out of 414,000 sqms of land that was allotted to us in 2010 via an auction. And when the state government has given us relief, granting us the interest waivers and directed us to execute lease-deed, the Authority has challenged the order in the high court, further delaying the project and adding to our suffering. We now hope that the high court will do justice to us as we have complied with all rules and regulations,” Mr. Gupta shared with Hindustan Times.
The land was allotted to Sunworld in 2010, but YEIDA cancelled it the following year, alleging non-payment of dues. The dispute went to the High Court, which in June 2012 allowed lease execution for undisputed land. Sunworld chose this option, and a lease was executed in September 2012 for about 65 acres of clear land.
YEIDA informed the court that Sunworld later sought to surrender the land, which was accepted by the Authority in board resolutions in 2019 and 2020. A challenge to these resolutions by consortium partner Vanalika Developers was dismissed by the court.
In December 2023, the UP government issued a policy for stalled projects allowing interest waivers and concessions if developers paid 25% of dues. YEIDA subsequently issued a demand letter in April 2024, asking Sunworld to pay 25% of the lease premium to revive the project. The developer challenged this demand before the state government, which led to the July 2, 2025 order granting relief.
The government order also noted that nearly 20 acres of land shown as “acquired” in YEIDA’s scheme brochure was actually Gram Sabha land that had been formally acquired only in December 2017, contributing to delays.
The High Court, on observing that the matter necessitated thorough deliberation, has stayed the government order dated July 2 and sent a notice to Sunworld City. It allowed six weeks for the filing of counter-affidavits and will take up the case after the completion of pleadings.
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