The Allahabad High Court will hear the contentious Rs 295 crore land compensation dispute involving businessman Reddy Veeranna on February 4. This follows a recent hearing on January 7 where the division bench, led by Chief Justice Arun Bhansali and Justice Kshitij Shailendra, granted additional time to the Uttar Pradesh government to file its affidavit.
Supreme Court Overturns Compensation Citing Fraud
The high court resumed hearings in October last year after a significant Supreme Court intervention. In July 2025, the apex court set aside the compensation previously awarded to Veeranna. The Supreme Court found the entire process tainted by fraud. It ruled that Veeranna had misled courts to secure enhanced compensation for land in Noida's Sector 18.
This land was later leased by the Noida Authority to DLF for the prominent Mall of India project. The dispute centers on over five bighas of land in Chhalera Banger village. Veeranna, along with Vishnu Vardhan and T Sudhakar, jointly purchased this land in 1997 for approximately Rs 1 crore.
A Twisted History of Ownership and Acquisition
The Noida Authority partially acquired the land in 2005. It subsequently leased the plot to DLF for Rs 173 crore. Initially, all three co-owners challenged the acquisition together. However, the case took a controversial turn in 2006.
Veeranna obtained a compromise decree from a trial court using a revoked power of attorney. This legal maneuver led to his name being entered as the sole owner in the official revenue records, sidelining Vardhan and Sudhakar.
Legal Battles and Escalating Compensation
In 2019, Veeranna approached the high court seeking enhanced compensation. Notably, he did not implead the other co-owners in this petition. The court, in October 2021, fixed the compensation at Rs 1.1 lakh per square metre.
The Supreme Court upheld this order in May 2022. It also removed a 50% development charge. This decision raised Veeranna's total entitlement to around Rs 360 crore, later settled at Rs 295 crore. Crucially, the apex court clarified it was not making any ruling on the underlying ownership of the land.
Co-owners Challenge the Fraud
In 2023, co-owner Vishnu Vardhan moved the Supreme Court. He alleged that Veeranna had repeatedly misrepresented facts. Vardhan argued that Veeranna relied on an invalid decree and systematically excluded the other co-owners from the proceedings.
The Supreme Court's three-judge bench delivered a landmark judgment on July 23, 2025. It set aside all earlier rulings in the case. The bench held that fraud had vitiated the entire legal process. It remanded the case back to the Allahabad High Court with clear instructions. The high court must now reconsider both the ownership issues and the compensation after hearing all concerned parties.
Current Status and Secured Funds
Following the Supreme Court's remand, the high court has been addressing procedural matters. In November, it allowed applications for impleadment filed by Vardhan and Sudhakar. Counter-affidavits were filed by December 5, and time was granted for a rejoinder. The state government's request for more time on January 7 led to the upcoming February 4 hearing.
Reddy Veeranna continues to retain the massive Rs 295 crore compensation amount. He has furnished property securities worth an equivalent sum through his firm, Manyata-Pristine. Under an interim order from the Supreme Court passed in January 2025, these securities will remain with the court. They will be held until the Allahabad High Court delivers its final verdict in this long-running and complex dispute.
