Land acquisition dispute: HC orders status quo on 469 acres Rajpura land sold by SIEL Ltd

Three decades after the state of Punjab agreed to acquire 1,000 acres on a private company’s behalf in Rajpura, the Punjab and Haryana High Court has ordered status quo regarding construction, possession and alienation of over 469 acres. The process of acquiring the land originally for industrial development began in 1993, but 469.37 acres was allegedly sold for more than Rs 117 crore.

The matter was placed before the bench of Justice Deepak Sibal and Justice Lapita Banerji after some of the original landowners approached the high court through counsel Amrindra Pratap Singh submitting that the state of Punjab signed an MoU on October 14, 1993, with M/s Shriram Industrial Enterprises Limited (SIEL Ltd). The state as a part of the process had agreed to acquire 1,000 acres in Rajpura in Patiala district.

The petitioners contended that the acquisition was with the object that M/s SIEL Ltd would industrially develop the acquired land, “which would not only promote industrial growth in the state of Punjab, but would also result in providing better employment opportunities and uplift the economic standards of the residents of the state”.

The bench was told that the state acquired their land in 1995 in pursuance of the MoU. In all, 446 acres was handed over to M/s SIEL Ltd. In 1998, the possession of an additional 91.79 acres was delivered to the company, and in 2007, yet another 57.6 acres were handed over.

The petitioners contended that M/s SIEL Ltd utilised just a portion for the purpose. “Between 1990 to 2000, M/s SIEL Ltd constructed a boundary wall over 100 acres, but used only 40 acres within the same to set up a chemical manufacturing plant. For about 30 years, majority of the land acquired by the state, possession of which was also handed over to M/s SIEL Ltd, remains unutilised.”

The petitioners added that the company had recently disposed of a major chunk in violation of the purpose for which the land was acquired. “Through the impugned sale made recently M/s SIEL Ltd has sold, out of the land, 469.37 acres for a total sale consideration over Rs 117 crore, which is not only against the purpose for which the land had been acquired and handed over by the state to M/s SIEL Ltd but on the face of it also fraudulent.”

After hearing preliminary submissions, the bench issued notice of motion to the state and other respondents for December 2. Notice regarding stay was also issued. Appearing on the state’s behalf, Deputy Advocate-General SS Gill accepts noticed on behalf of the official respondents

“In the meanwhile, status quo with regard to construction, possession and alienation of the land covered under the share purchase agreement dated October 11, 2024, pertaining to 469.37 acres, shall be maintained,” the bench ordered.