Government Reclaims Prime Delhi Land from UNI After 46 Years, Citing Breach of Allotment Conditions
In a landmark decision, the government has taken possession of prime land in central Delhi valued at approximately Rs 410 crore from the news agency United News of India (UNI). This action follows a Delhi High Court order and comes after an allotment period spanning 46 years. A senior central government official emphasized that this case establishes a clear precedent: allottees cannot retain possession of land if they fail to adhere to stipulated conditions, regardless of any pretext.
Court Rejects UNI's Plea After Decades of Non-Performance
The land, located at 9, Rafi Marg, was originally allotted to UNI, a not-for-profit national news agency, for the specific purpose of constructing a composite office complex. According to the original allotment letter from the Land and Development Office (L&DO), the land "shall" be used only for this construction and for no other purpose without prior approval. However, construction never commenced, even after four decades.
In 2000, a revised allotment letter required UNI to build the complex within two years, but this condition remained unfulfilled. After issuing a show-cause notice, L&DO cancelled the allotment in March 2023. The Delhi High Court upheld this cancellation, noting that UNI had been given "more than excessive latitude for several decades since 1979" but persistently failed to comply.
Insolvency Proceedings Lead to Unauthorized Transfer
The situation escalated when UNI underwent the Corporate Insolvency Resolution Process (CIRP). In February 2025, the National Company Law Tribunal approved a resolution plan in favor of The Statesman Ltd. This transfer of ownership and management control to a private commercial entity occurred without prior approval from L&DO, the lessor.
An official stated, "As a consequence of this, the effective ownership and management control of the allottee stood transferred to a private commercial entity without any prior approval of the lessor. This amounts, in substance, to an unauthorized transfer/change in control of the allotted premises, which is not permissible under the terms of allotment."
The new management of UNI argued in court that it was now "willing and able" to raise funds for construction. However, the court dismissed this plea, ruling that it "cannot retroactively cure or excuse more than 45 years of persistent non-performance."
Precedent Set for Future Allotments
The government's move underscores that any "transfer of ownership or management of such land" to a private entity by any means is unauthorized under the allotment terms. Officials highlighted that the induction of a commercial organization fundamentally alters the character, purpose, and eligibility of the allottee, thereby vitiating the original grant's basis.
This case sets a strong precedent for allottees, warning against transferring ownership or control of allotted land in such a manner. The Delhi High Court has directed L&DO to take possession of the land, reinforcing the government's stance on enforcing allotment conditions strictly.
