HC declares land fee illegal, orders Rs 600+ mn refund to Logix

The Allahabad High Court directed the Yamuna Expressway Industrial Development Authority (YEIDA) to reimburse more than Rs 600 million to Logix Infrabuild, asserting that the deduction of the amount was done illegally. This action took place despite the developer surrendering the allocated land for the township. In its order dated November 16, the division bench of former Chief Justice Pritinker Diwaker (who retired last month) and Justice Ashutosh Srivastava stated, The Authority failed to fulfill its contractual obligations, disregarding the challenges faced by the developer in securing finances typically obtained from banking institutions, investors, and the market. The court emphasised that, In the absence of possession of the land, the Authority has nothing to lose, but the petitioner loses everything ? the project and, above all, its reputation in the market. The origins of the case can be traced back to 2011 when YEIDA invited bids for the allocation of 200 acre in Sector 22D. Logix emerged as the highest bidder, offering Rs 3.08 billion, and was subsequently allotted the land. Within a month, Logix deposited 10% of the amount as per the terms and conditions, totalling Rs 830.6 million by January of the following year. In January, Logix requested YEIDA to execute two land deeds of 100 acre each instead of one. YEIDA, admitting that it did not possess the entire 200 acre, agreed ten months later. Consequently, 100 acre were allocated to Logix, and the second tranche of land was provided to its sister concern. However, 23 acre of the 100 allotted acre to Logix were entangled in a legal dispute. This disputed patch of land was also scattered, posing a hindrance to the township project.