CAG blasts GNIDA for Greater Noida farmhouse plots on Hindon floodplains

The Regional Plan 2021 had clearly marked the Hindon as a “natural conservation zone,” where only restricted activities like farming and afforestation were allowed. (Photo: X/@ALawAbidingCit2)

The Greater Noida Industrial Development Authority (GNIDA) has been criticised by the Comptroller and Auditor General of India (CAG) for permitting large-scale construction on the floodplains of the Hindon River, an area officially classified as a natural conservation zone, The Times of India reported.

Instead of safeguarding this eco-sensitive belt, GNIDA launched farmhouse schemes that eventually led to the creation of residential colonies, shops, and even polluting workshops in a region where construction is strictly banned.

The CAG audit has pointed out that these actions have flouted several state and national-level directives, causing regulatory lapses as well as huge financial defaults by developers.

Schemes in violation of environmental rules
In 2011, GNIDA introduced the Institutional Farmhouses scheme, followed by the Krishi Farmhouses scheme in 2015. While these projects were meant for limited and temporary use, they soon turned into permanent constructions. For example, plots were allowed as close as 130 metres from the Hindon’s banks in Haibatpur village, an area reserved as a conservation zone.

The Regional Plan 2021 had clearly marked the Hindon as a “natural conservation zone,” where only restricted activities like farming and afforestation were allowed. Construction was limited to just 0.5 per cent of the land, and permanent habitation was explicitly prohibited.

Adding to this, a 2010 state government order had instructed all development authorities to mark floodplain areas in their Master Plans and keep them green. The National Green Tribunal (NGT) also banned any form of construction along the Hindon and Yamuna in 2013, and the Ministry of Water Resources reinforced this ban in 2016.

Despite these binding rules, GNIDA listed the Hindon floodplain land as “agricultural use” in its Master Plan 2021 and continued to push ahead with farmhouse projects in violation of the law.

Land allotment and encroachments
Under the Institutional Farmhouses scheme, three massive plots of land were auctioned, totalling nearly 13.5 lakh square metres. Big developers such as SDS Infratech, Gaursons India, and Gaursons Hi-tech Infrastructure received these plots. By April 2021, they collectively owed GNIDA Rs 598 crore. While one plot (FH-1) was cancelled in 2017 due to non-payment, the matter remains in court. Also, the other two plots (FH-2 and FH-3) were not cancelled despite repeated defaults.

The audit also found GNIDA's land allotment process flawed, with plots allotted without ensuring clear ownership. FH-1 had 6,831 sqm under development at allotment, while FH-2 and FH-3 had portions unacquired, encroached, or under litigation. GNIDA leased land parcels to FH-2 and FH-3 in two parts, yet issues persisted into 2022.

Farmers filed cases seeking higher compensation and encroached on plots, but GNIDA shifted responsibility to developers. It also allowed developers to mortgage land despite unpaid dues, a practice criticised by the Supreme Court in the Amrapali case. In FH-2, the Authority permitted mortgage on the condition that banks paid Rs 107 crore in dues, but no payment was received.

The Krishi Farmhouses scheme of 2015, meant to benefit farmers whose land had been acquired, also ended up contributing to environmental damage. Nine plots measuring over 84,000 square metres were allotted through a lottery. These plots were located within the Hindon floodplain itself, just 130 to 553 metres from the riverbank. Over time, inspections and satellite images revealed dense construction of houses and shops in these areas. Although GNIDA acknowledged encroachments in 2015 and 2016, it failed to take any corrective action. Instead, in 2019, its board decided to cancel the scheme and refund deposits with 4 per cent interest. By 2021, most refunds had been processed, though one case was still pending in 2022.

Financial losses and environmental damageBy April 2021, dues from both farmhouse schemes had mounted to Rs 646 crore. Despite such heavy defaults, most developers faced little or no serious action. Moreover, more than a decade after their launch, most farmhouse projects remained incomplete, leaving behind an unsightly mix of encroachments, half-finished houses, and unauthorised commercial activity.

The CAG concluded that GNIDA had failed in its core responsibility. Instead of protecting the Hindon floodplains and preserving them as green buffers against floods, it facilitated their conversion into private farmhouse colonies. In doing so, it not only violated environmental regulations and court orders but also allowed developers to default on huge sums of public money.