Statesman entry no rescue for UNI; Centre takes over Rafi Marg plot post Del HC nod

Kolkata: The Central government has taken possession of the Rafi Marg premises allotted to United News of India (UNI), hours after the Delhi High Court upheld the cancellation of the allotment over a four-decade failure to build the mandated media complex, and directed authorities to reclaim the land immediately. Dismissing UNI’s plea, Justice Sachin Datta held that the cancellation was “fully justified and legally inevitable,” noting that the core purpose of the allotment — construction of a composite office complex for multiple media organisations — had remained unfulfilled since 1979. The bench emphasised that public land allotted for a specific purpose cannot be “held hostage” by a defaulting allottee. The court also took note of UNI’s request to commercially lease out up to 70% of the proposed building to generate funds, observing that such a proposal ran contrary to the institutional purpose of the allotment, which envisaged a composite office complex for multiple media organisations, including the Press Council of India, a co-allottee. Following the ruling, the Land and Development Office (L&DO), Ministry of Housing & Urban Affairs, took control of the property in compliance with the court’s direction to ensure lawful use of the land.

The land parcel, measuring about 5,289.52 sq metres in a prime central Delhi location, carries an indicative value of over Rs 400 crore. The court found that UNI failed to construct the building within the stipulated period, did not execute agreements with co-allottees and took no concrete steps towards development. It also recorded that the agency had expressed its inability to participate in the project due to financial constraints. UNI had also undergone insolvency proceedings, with a resolution plan approved in favour of The Statesman Limited, though the court held that subsequent developments could not justify decades of default. A show-cause notice issued in January 2023 was followed by an inadequate response, leading to the cancellation of allotment in March that year.

Rejecting UNI’s argument on delays due to lack of clarity over construction modalities or involvement of agencies such as CPWD and NBCC, the court said the record reflected prolonged inaction and persistent non-compliance. The court clarified that it had not adjudicated upon the rights of the Press Council of India, a co-allottee. The land at 9, Rafi Marg was allotted to UNI in 1979 for constructing a composite office complex for multiple media organisations, with a condition requiring construction within a fixed timeframe. Measuring about 5,289.52 sq metres, the land is estimated to have an indicative value of over Rs 400 crore at prevailing rates. Despite revisions and opportunities given by the Centre over the years, including in 1986, 1999 and 2000, no construction was undertaken. UNI failed to finalise building plans, execute agreements with co-allottees or take steps towards development, reflecting persistent inaction. In 2022, UNI admitted financial incapacity and expressed its inability to participate in the project. It also failed to cooperate with co-allottees such as the Press Council of India, did not vacate portions of land required for joint development and avoided coordination efforts. Authorities also flagged misuse of the land, including running a canteen and a proposal to lease out up to 70% of the proposed building, contrary to the institutional purpose.Official sources also claimed that no ground rent had been paid for decades. Following a show cause notice in January 2023 and an unsatisfactory reply, the allotment was cancelled in March 2023 — a decision now upheld by the High Court.