Addendum to Approval for JDA land settlements
in Gomti Greens Project, Lucknow
Background
EIL had launched a township project in village Saraswan, Ahmamau, and
Ardonamau named “Gomti Greens” over 226.37 acres after getting license from
Lucknow Development authority. Out of 226.37 acres land, 37 acres land were
belonging to SC/ST category (Marginal section of society) and transfer of such
land is permissible only with prior DM permission. Seeing tiresome process of
getting ownership of SC land, EIL had executed Consortium agreement and
subsequently Joint Development Agreement to obtain selling as well as
development rights over SC land. However, ownership of land parcels still
remains with SC/ST members and is duly recorded in revenue records as well.
Realizing this technical loophole, two JDA members named Jagdish & Ramchandra
fraudulently sold ~5.864 acres land parcels out of 9.11 acres under their name to
third parties and initiated civil and criminal litigation against EIL.
To resolve this problem, Team Lucknow has planned to follow below mentioned
procedure for obtaining ownership of SC land based on Management Approval
vide “DigitalNote_2024_Dec_LA_29019” and
“DigitalNote_2024_Dec_LA_29020”:
a. Application under section-80 for conversion of land use (from agriculture to
non-agriculture) - to bypass the permission mandated under section-98 of
UP Revenue code, 2006. This will save time and avoid any possible conflicts
with interested parties.
b. Irrevocable Power of Attorney in the name of our counsels staff so that in
the absence of original landowners, we can easily act on their behalf.
c. Withdrawal of suits filed by Jagdish & Ramchandra against EIL and
Cancellation of sale deed executed by them.
d. Registered ATS to strengthen the process so that upon conversion of
section-80, our sale deed can be executed by enforcing our legal rights.
Challenges
Following the necessary approvals, Team Lucknow has initiated separate Section
80 applications for land conversion pertaining to Villages Sarsawan and
Ardonamau.
As per recent discussions, the Revenue Department is willing to grant clearance
for the land parcels located in Village Sarsawan only. However, for Ardonamau,
the department is unable to proceed due to discrepancies between the revenue
records and the revenue map, along with the ongoing status of land under
consolidation (chakbandi) in the area.
In light of these developments, we are forced to revise our overall strategy
concerning the land parcels in Ardonamau. Meanwhile, the process for Sarsawan
continues in accordance with the previously approved plan from the
management.
Proposal
Given the current constraints, the only viable solution to secure ownership of the
JDA land parcels, measuring approximately 7.2 acres in Ardonamau, is outlined
below:
a- Execution of exchange deed from current SC member to EIL’s proposed SC
member. This will secure EIL’s right. (Non-Agricultural to Non-Agricultural).
b- Execution of fresh Consortium Agreement with Proposed SC Member.
c- Obtaining DM permission for purchase of land parcels owned by SC
Member.
d- Sale deed with new JDA member.
Financial Impact
1- Valuation of Land and outgoing value:
Description Value Remarks
Total Area (Acre)
IPC Value (Mn/ Acre)
IPC Amount (Mn)
Property Value at circle
rate
Total Transaction Cost
Outgoing Value (Mn)
Cashflow Saving (Mn)
2- Total Transaction cost valuing ~_____ Mn to be incurred*.
Note-* Transaction cost will be in addition to cost approved in previous approval
notes “DigitalNote_2024_Dec_LA_29019” and
“DigitalNote_2024_Dec_LA_29020.
Rational for proposal
By reaching an amicable settlement with the dissenting farmer of the JDA, we
stand to gain the following key benefits:
- Ensure EIL’s control over the JDA land, which had been previously contested
by JDA members, thereby safeguarding the transaction.
- Resolve long-standing legacy issues by establishing clear and legal ownership
in favour of EIL.
- Settle ongoing and potential future litigation related to the JDA land and the
units constructed upon it.
- Eliminate ambiguity concerning the Completion Certificate already issued by
LDA.
- Secure development cost incurred by EIL over JDA’s land.
- Overall saving of ~ ____ Mn against ______ acres land.
- Enable initiation of the township handover process, which is contingent upon
EIL’s ownership being officially recorded in the revenue records.
Recommendation:
Requesting for approval for execution of the proposed settlement process, which
includes signing the Agreement to Sell (ATS), execution of the sale deed,
withdrawal of ongoing legal suits, and other related formalities. Additionally,
approval is requested for the associated transaction costs and the proposed
outgoing value required to complete the settlement.
Enclosures:
1. Annexure-1a “DigitalNote_2024_Dec_LA_29019”
2. Annexure-1b “DigitalNote_2024_Dec_LA_29020”
3. Annexure-2 “Mapping of Incoming Land parcel”
4. Annexure-3 “Details of land parcels”
5. Annexure-4 “Transaction Cost”
