Allahabad High Court Stays State Govt Relief To Sunworld City In YEIDA Dispute

The Allahabad High Court has stayed a state government order granting relief to real estate developer Sunworld City in its long-standing dispute with the Yamuna Expressway Industrial Development Authority (YEIDA). The order, dated July 2, 2025, had provided a 14-year zero-period waiver and directives for the execution of leases on undisputed land.

The interim order was passed by Justice Arun Kumar on December 3 while hearing a writ petition filed by YEIDA challenging the government’s decision under Section 41(3) of the Uttar Pradesh Urban Planning and Development Act, 1973. The court has stayed the implementation of the disputed order and issued a notice to Sunworld City, giving all respondents six weeks to file counter-affidavits.

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The dispute dates back to 2011, when YEIDA allotted approximately 103 acres of land in Sector 22D to Sunworld City for a township project. Due to non-payment of the lease premium, around 38 acres remained outside YEIDA’s physical possession, leading to cancellation of the allotment. 

The developer approached the High Court in 2012, following which YEIDA executed a lease deed for 65 acres on September 14, 2012 and permitted a zero period from November 16, 2011, to December 31, 2016 for the disputed area.

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In April 2024, YEIDA issued a demand letter allowing Sunworld City to revive the project by paying 25 per cent of the lease premium. The High Court’s interim order now puts the effect and operation of the July 2 government decision on hold pending further proceedings.