The Allahabad High Court has stepped in to end a prolonged tussle over water supply to Jaypee Infratech Limited’s integrated township projects in Noida, directing that piped Ganga water be made available within two weeks once the developer furnishes a Rs. 60 crore bank guarantee.
At the same time, the bench asked the Uttar Pradesh government to take a call on the liability for external development charges that NOIDA has been pressing against the company.
The division bench of Justice Shekhar B. Saraf and Justice Praveen Kumar Giri was hearing Jaypee Infratech’s plea challenging NOIDA’s demand notice dated March 15, 2023. The authority had initially raised a bill of Rs. 139.86 crore for treated Ganga water and sewer connections linked to Jaypee Greens
Wish Town, a sprawling township spread across Sectors 128, 129, 131, 133, 134 and 151 in Noida. The demand was later revised to approximately Rs. 123 crore.
At the heart of the dispute lies clause 7.2.1(j) of a 2003 concession agreement executed between the then Taj Expressway Industrial Development Authority (now YEIDA) and Jai Prakash Industries, Jaypee’s predecessor. The clause made YEIDA responsible for external development of land already developed in Noida or Greater Noida, without imposing costs on the concessionaire. Internal development, however, was clearly marked as the developer’s responsibility.
Jaypee’s senior counsel Shashi Nandan argued that external works, including water connections, were to be arranged by YEIDA and not charged to the developer. But NOIDA and YEIDA read the clause differently, contending that for land released after 2003, the responsibility shifted to the concessionaire. Senior advocate Amit Saxena for YEIDA insisted that the authority’s liability was confined to already-developed areas. NOIDA’s counsel Manish Goel maintained that even after certain deductions, the payable amount stood at around Rs. 123 crore.
The issue is not new. More than a decade ago, in 2012, YEIDA had written to the state government requesting exemption of Rs. 60 crore from NOIDA’s demand, but no decision has been taken so far.
Noting that residents of the township have been relying on tubewell water, which the court described as “not optimum for various purposes,” the bench underlined that a reliable water supply is vital for both public health and regulatory compliance under National Green Tribunal norms.
To break the deadlock, Jaypee Infratech offered to furnish a Rs. 60 crore bank guarantee from a nationalised bank, to be renewed annually. NOIDA signalled its consent, provided the government resolved the liability question swiftly. Court accepted this arrangement and directed the state to decide YEIDA’s 2012 request after hearing all stakeholders including NOIDA, YEIDA and Jaypee, within 12 weeks.
“The residents and occupants of the sectors developed by the petitioner are presently using tubewell water… A proper water connection is required for the health of residents and also for regulation as per National Green Tribunal guidelines,” the bench noted.
Until a decision comes from the government, recovery of the remaining Rs. 23 crore has been stayed. Court also clarified that once water supply is operational, residents would be liable to pay usage charges in accordance with law.
The matter has been posted for further hearing on January 12, 2026.
