Today: Aug 16, 2025

Legal Changes Required for Effective Governance, ETRealty

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4 hours ago


NOIDA: Were UP govt to consider a structural makeover for replacing Noida Authority with a metropolitan council, as the Supreme Court has directed it to do, it would have to bring in an amendment to the UP Industrial Area Development Act, 1976, under which New Okhla Industrial Development Authority (Noida) was created.

Such a change will, however, be complex and protracted, requiring extensive consultations and hinge largely on the state’s political will, former officials said.

Supreme Court on Wednesday asked UP govt to consider replacing the industrial development authority with a metropolitan council for people-centric governance.

The direction was based on findings of an SC-constituted Special Investigation Team (SIT), which delivered a stinging report into the Authority’s functioning, flagging, among other things, decision-making centralised in the hands of a few officers, land allotment policies favouring builders and a lack of transparency.

The SIT, led by IPS officer SB Shiradkar, found Noida officers involved in 20 cases of excess compensation to landowners and recommended a probe into the assets of officials and their relatives. It also found the absence of processes for public consultation and environmental impact assessments, along with delays and inadequate grievance redressal.

Accepting the recommendations, a bench of Justices Surya Kant and Joymalya Bagchi directed the UP chief secretary to place the proposal for converting Noida into a metropolitan council before the council of ministers. Until a decision is taken, the court ordered the appointment of a chief vigilance officer in Noida, to be an IPS officer or a CAG officer on deputation, for financial audit.

The bench also ordered the formation of a Citizen Advisory Board (CAB) within four weeks and banned the implementation of any project in Noida without environmental clearance from the SC’s green bench.

Under the 1970 Act, UP govt is empowered to nominate five members to the Noida Authority’s board, a provision that allows direct citizen representation. However, over the successive years, none of the industrial development authorities in the state has implemented it.

Deodatta Sharma, chairman and CEO of Noida Authority between 2004-2005, told TOI that Noida Authority was originally formed in 1976 to shift industries from Delhi and decongest the capital. “However, over the years, Noida evolved into more of a residential and commercial hub. Currently, all land under the Noida Authority is on lease, and it charges lease rent either annually or for the full tenure to maintain and develop infrastructure for the city,” Sharma said. “With the SC expressing concern over transparency and public participation, the state can get a study done to identify the best practices worldwide and incorporate them here,” Sharma added.

Brijesh Kumar, who also served as CEO of Noida Authority for a short period, said while the state or the Noida Authority board can form a citizen advisory board through an administrative order, setting up a metropolitan council would require amendments to Industrial Area Act.

In the early 2000s, he said, Greater Noida had set up a neighbourhood council for CEOs to interact with residents for suggestions and feedback. “The practice, however, did not last for long,” he said. Kumar said it is for the state to decide how much administrative or financial power such a council can enjoy.

“The industrial authorities, being autonomous, can retain core operations, but such a council could bring more public participation,” Kumar, also a former chairman and CEO of Greater Noida (1998-2002), added.

Between 1966 and 1990, Delhi metropolitan council had functioned as the deliberative wing of the Delhi administration, with positions such as leader of the house, leader of the opposition, whips, and presiding officers, but without full legislative powers.

Alok Singh of Active Citizen Forum, residents have long been demanding representation on the Authority’s board. “Citizens are never consulted on what the city needs. Instead, projects are imposed on us, many of which prove useless. Residents are connected to the ground and know the city’s needs better.”

Since 2022, the forum has written to the Greater Noida Authority on several occasions seeking an authority-citizen committee and urged that the model be adopted by all industrial authorities in the state.

  • Published On Aug 16, 2025 at 08:48 AM IST

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