Uttar Pradesh Urban Planning and Development Act, 1973:

s.41(3) r/w ss.12 and 14 -Allotment of commercial plots in commercial area for construction of 5 star, 4 star and 3 star hotels on 90 years lease - Plots allotted at industrial rates - Later on, allotments cancelled as the same were made without following the procedure of auction, and the allotment on fixed industrial rates caused loss to government exchequer - HELD: Under private law, a lease governed exclusively by the provisions of Transfer of Property Act could be cancelled only by filing a civil suit for its cancellation or for a declaration that it is illegal, null and void and for the consequential relief of delivery back of possession - Where the grant of lease is governed by a statute or statutory regulations, and if such statute expressly reserves the power of cancellation or revocation to the lessor, it will be permissible for an Authority, as the lessor, to cancel a duly executed and registered lease deed, even if possession has been delivered, on the specific grounds of cancellation provided in the statute - In the instant case, NOIDA is a statutory authority and it has not alleged or made out any default in payment or breach of conditions of the lease or breach of rules and regulations - Nor is it the case of NO/DA that any of the allottees is guilty_ of any suppression or misstatement of fact, misrepresentation or fraud - Therefore, the allotment of commercial plots by NO/DA to the allottees for setting up hotels is valid -There is no violation of the regulations or policies of NOIDA in allotting commercial plots for hotels - Therefore, cancellation of allotment is unsustainable. ss. 41(3) - Allotment of plots - Cancellation of- HELD: When valuable rights had vested in the allottees, by reason of the allotments and grant of leases, such rights could not be interfered with or adversely affected, without a hearing to the affected parties - Natural justice - Opportunity of hearing. 

Administrative Law: Allotment of commercial plots for hotels - Cancellation order - Judicial review of - HELD: In the instant case, the · allotments of plots for hotel projects were challenged in writ petitions and in compliance with the direction of the High court, the state government had a re-look at the matter and found some irregularities in allotment - The decision of the state government in revision, is not based on any different policy, but based on its finding that the existing regulations and policies of NO/DA were violated - The policy of the state  government cannot override the NO/DA Regulations - If any policy is made, intending to give different meaning to the words 'commercial use' and 'industrial use', that can be given effect only if the regulations are suitably amended - The fact that the tourism or hotels have been given the status of 'industry' will not convert them into industries, for the purpose of allotment of plots, nor will the use of land by such tourism or hotel industry, will be an industrial use - Allotment of plots for hotels in a commercial area is wholly in consonance with the NO/DA Regulations and Master plan which earmarks areas for specific land uses like industrial, residential, commercial, institutional, public, semi-public, etc - Therefore, the allotment of plots situated in commercial areas earmarked for commercial use, to hotels did not violate any provisions of the Act or the NOIDA Regulations - NO/DA (Preparation and Finalisation of Plan) 1991 Regulations, 1991 - Policy dated 22.5.2006 of Government of Uttar Pradesh - Uttar Pradesh Urban Planning and Development Act, 1973. Public law - Breach of statutory provisions or procedural irregularities - Allotment of plots for hotels on 90 years lease - Cancellation of - Remedial action - Explained. TOURISM:

Running a hotel/boarding house/restaurant - HELD: Is a commercial activity - By no stretch of imagination, use of a plot for a hotel can be considered as use of such land for an industrial purpose - It was not necessary for NOIDA to change the land use of plots_ to be allotted to hotels, from commercial to industrial use.

Urban Development:

Allotment of commercial plots for 5 star, 4 star and 3 star hotels - Requirement of inviting tenders - Commercial plots in commercial area allotted at fixed industrial rate without inviting tenders - HELD: Allotment of commercial plots is governed by the NO/DA Policies and Procedures for Commercial Property Management, 2004 - Under the said policy, commercial properties of NO/DA can be allotted only on sealed tender basis or by way of public auction - The allotment of commercial plots at fixed rate was, therefore, clearly contrary to the said regulations of NO/DA - The failure to follow the procedure prescribed in the NO/DA Commercial Property Management Policy is a violation of the policy and such violation has resulted in loss to the public exchequer - Therefore, the state government can certainly interfere under its revisional jurisdiction - As the allotment is of commercial plots governed by NO/DA Commercial Property Management Policy, and as the reserve rate itself was Rs.300001- per sq.m., allotment at Rs. 7,400 per sq.m. caused loss and violated the regulations and policy of NOIDA - However, the violation occurred on account of a mistake on the part of the officers of NOIDA in misinterpreting the government policy dated 22.5.2006 - The allottees are given the option to continue their respective leases by paying the premium (allotment rate) at Rs. 70,0001- per sq.m. (with corresponding increase in yearly rent/one time lease rent}, without any location benefit charges - NOIDA Policies and Procedures for Commercial Property Management, 2004 - Uttar Pradesh Urban Planning and Development Act, 1973 - s.41.Words and Phrases: