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Supreme Court of India· 08 September 2026

Are the provisions of a governmental policy interpreted like the provisions of a statute?

NEW OKHLA INDUSTRIAL DEVELOPMENT v. M/S SUNSHINE TRADE TOWER PRIVATE
2026 INSC 975
Coram: Justice Pamidighantam Sri Narasimha · Justice Alok Aradhe
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Answer

The provisions of a governmental policy are not interpreted like the provisions of a statute.

No. The provisions of a governmental policy, such as NOIDA's Zero Period Policy, are not interpreted like the provisions of a statute; a court must consider both the micro and macro perspective, reading the specific clause for its purpose and object while ensuring the interpretation serves the broader goals of the policy as a whole. (¶34)

Headnote

Uttar Pradesh Industrial Area Development Act, 1976 — NOIDA Zero Period Policy — Interpretation of policy — Adequate access — Developer's liability — Interpretation of governmental policy — Purposive, not statutory — Held: The provisions of a governmental policy, such as NOIDA's Zero Period Policy, are not interpreted like the provisions of a statute; a court must read the clause for its purpose and object, from both a micro and macro perspective. (¶34) Zero Period Policy — Clause 5 — Adequate access standard — Held further: Partial or some access to an allotted plot does not exempt a developmental authority from its obligation to provide easy, effective and legitimate access; where adequate access is not in fact provided, the policy's benefit cannot be denied. (¶33, 35) Developmental authority's default — No liability on developer — Held further: A developer cannot be fastened with liability for a developmental authority's failure to provide promised access infrastructure; denial of policy relief in such circumstances is unreasonable and untenable in law. Appeals dismissed. (¶42, 44)

Headnote

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In the Court's own words
Paragraph 34Having considered the matter in detail, we are of the opinion that the provisions of a policy, such as the Zero Period Policy, are not to be interpreted like the provisions of a statute. When interpreting the provisions of a policy, it is necessary for courts to consider both a micro and a macro perspective of the matter. A court must consider the purpose and object of the clause being interpreted and, at the same time, ensure that any interpretation reached sub-serves the broader goals and purposes of the policy as a whole. In this perspective, we are of the opinion that Clause 5 of the Zero Period Policy is intended to ensure that a developer has easy, effective, and legitimate access to the allotted plot and is able to proceed with construction. This Clause is not to be interpreted so as to disapply the benefit of the Zero Period Policy in a situation where a developer struggles to gain access to the allotted plot and barely manages to keep construction ongoing. The circumstances in which a developer has to race against time, keeping in mind contractual and financial obligations, are well-known to everyone in the real estate industry.
Acts & Sections
s.41(3) Uttar Pradesh Urban Planning and Development Act, 1973s.12 Uttar Pradesh Industrial Area Development Act, 1976

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Also decided in this judgment
Does partial or some access to an allotted plot exempt a developmental authority from its obligation to provide easy, effective and legitimate access?Can a developer be fastened with liability for a developmental authority's failure to provide promised access infrastructure?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections