Delhi police seals news agency-UNI's office, cites HC order on land allotment

The Delhi High Court on March 20, upheld the decision of the Land and Development Office (L&DO) to cancel the allotment of prime government land at 9, Rafi Marg to the United News of India (UNI), said sources.

The matter concerning the allotment of Government land at 9, Rafi Marg, New Delhi, to United News of India (UNI) for the development of a composite office complex for media institutions was adjudicated by the High Court of Delhi in W.P.(C) 5363/2023.

In its judgment dated March 20, the Court upheld the action of the Land and Development Office (L&DO), Ministry of Housing and Urban Affairs, in cancelling the allotment vide letter dated March 29 2026, after due process, including issuance of a Show Cause Notice dated Jan 12 2023.

The High Court of Delhi, vide judgment dated March 20, categorically directed that "the concerned officials of the respondents to immediately take possession of the property in question and ensure that the same is utilised in accordance with law."

In compliance with the aforesaid specific direction of the Court, the physical possession of the premises at 9, Rafi Marg was carried out on Friday, thereby executing the mandate of the Court in letter and spirit.

The Court, after examining the factual and legal position spanning several decades, held the cancellation to be valid and justified on the following grounds:

According to court records, the allotment, made in 1979, was subject to the essential condition of constructing a composite office building within a stipulated timeframe. UNI failed to undertake any construction for over four decades, constituting a serious and fundamental violation.

Despite multiple extensions and modifications granted by the Government (notably in 1986, 1999, and 2000), UNI did not finalise building plans, did not execute agreements with co-allottees and took no concrete steps toward construction. This reflected continuous neglect and lack of progress.

Court records state that UNI, in 2022, admitted its financial incapacity to undertake construction. The Court held that an allottee unable to fulfil the purpose of allotment cannot retain rights over public land.

According to court documents, the allottee entity underwent Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, culminating in approval of a resolution plan by the Hon'ble National Company Law Tribunal in February 2025 in favour of The Statesman Limited.

Consequently, effective ownership, and management control of the allottee was transferred to a private commercial entity without any prior approval of the lessor.

According to court records, this development amounts, in substance, to an unauthorised transfer/change in control of the allotted premises, which is impermissible under the terms of allotment. The allotment having been made to a not-for-profit national news agency for a specific institutional purpose, the induction of a for-profit commercial organisation fundamentally alters the character, purpose, and eligibility of the allottee, thereby vitiating the very basis of the original grant.

The project envisaged joint development with stakeholders, including the Press Council of India (PCI). However, UNI failed to cooperate in development, did not vacate allocated portions and avoided coordination efforts. This frustrated the purpose of the allotment.

It is also relevant that the Court took note of the position of the Press Council of India (PCI), a co-allottee of the land and a statutory body, which had been allotted a substantial portion of the premises for the same composite development.

The court records indicate that PCI had consistently expressed concerns regarding the lack of progress in construction and the absence of coordinated action, and had sought the availability of its allotted land to proceed with development.

However, the intended project could not move forward due to continued delays and non-resolution of inter se issues, thereby affecting the rights and interests of other stakeholders as well.

According to court records, instances were noted of unauthorised/commercial usage, requests inconsistent with institutional use (e.g., leasing a substantial portion commercially). Such actions were contrary to allotment conditions.

According to court records, UNI's reply to the Show Cause Notice was found vague and unsupported, with no substantive justification for prolonged inaction. The Court reaffirmed that the allotment was not absolute ownership, but a conditional grant, liable to cancellation upon breach of terms.

The land, situated in a prime location, was meant for institutional use. Decades of non-utilisation amounted to wastage of valuable public resources, warranting intervention.

The High Court concluded that UNI failed to fulfil the core condition of construction, demonstrated a lack of intent and capacity, did not cooperate in joint development and acted in violation of usage conditions.

Accordingly, the cancellation of allotment by L&DO was held to be lawful, justified, and in the public interest.

According to the court records, the principle was reaffirmed that public land allotted for specific purposes must be utilised within a reasonable timeframe, and strictly in accordance with allotment conditions. Failing which, the Government is duty-bound to take corrective action to ensure optimal use of public resources.

The court record states that the acquisition by the Statesman Group is for less than 100 crores, while the real worth of the subject land is more than a thousand crores.

According to court documents, land was allotted to UNI from 1979 onwards under the condition that a composite office be built within a specific time limit; however, no construction occurred for over 40 years despite the government providing multiple chances through revisions in 1986, 1999, and 2000.

The situation worsened as UNI failed to reach agreements with co-allottees, lacked coordination, and skipped meetings, eventually admitting financial inability in 2022 and refusing to participate in construction.

Court records state that UNI obstructed the Press Council by failing to vacate the land and blocking development, while also misusing the site for commercial purposes, like a canteen and requesting to lease out 70% of the space.

Further, the court documents state that following a weak and vague reply to a 2023 Show Cause Notice, the Court analysed the matter and found that fundamental conditions were violated, the long delay was unjustified, and public land was being wasted due to a lack of intent and capacity. (ANI)

Consequently, the final decision declared the cancellation valid, and the L&DO, in compliance with the High Court's judgment, took possession of 9 Rafi Marg. (ANI)