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Supreme Court of India· 08 September 2026

Can a developer be fastened with liability for a developmental authority's failure to provide promised access infrastructure?

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

A developer cannot be fastened with liability for a developmental authority's failure to provide promised access infrastructure.

No. A developer cannot be expected to proceed with a project on its original site plan, nor fastened with liability, where a developmental authority has failed to discharge its own obligation to provide promised access infrastructure; denial of policy relief and refusal to sanction a revised site plan in such circumstances is unreasonable and untenable in law. (¶42)

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 42It is for these aforementioned reasons that the Developer has been compelled to request NOIDA to sanction a revised site plan. We are of the opinion that the Developer can neither be expected to proceed with the project in terms of the original site plan nor can it be fastened with any liability for NOIDA’s failure to discharge its obligation to provide the 45- metre Front Road. Consequently, NOIDA’s denial of Zero Period Policy benefit to the Developer and its persistent refusal to sanction the revised site plan so that the project may finally go ahead are unreasonable and untenable in law. Conclusion
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
Are the provisions of a governmental policy interpreted like the provisions of a statute?Does partial or some access to an allotted plot exempt a developmental authority from its obligation to provide easy, effective and legitimate access?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections