New Delhi [India], March 21 (ANI): Government sources have clarified that the sealing of new agency UNI's office at 9 Rafi Marg in the capital was carried out as the Government was duty bound to ensure optimal use of public resources.

According to Government sources action was taken after the High Court concluded that UNI, failed to fulfill the core condition of construction for the planned composite office building for the past four decades and demonstrated lack of intent and capacity while not cooperating 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 public interest. The court upheld the principle that land allotted for specific purposes must be utilized, 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.

Government sources further said that the Court after examining the factual and legal position spanning several decades, held the cancellation to be valid and justified.

The grounds of the same were:

1: Breach of Fundamental Condition: 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.

2: Persistent Inaction Despite Opportunities: Despite multiple extensions and modifications granted by the Government (notably in 1986, 1999, and 2000), UNI: - Did not finalize building plans - Did not execute agreements with co-allottees - Took no concrete steps toward construction This reflected continuous neglect and lack of progress.

3. Admission of Financial Inability: UNI, in 2022, admitted its financial incapacity to undertake construction. The Court held that an allottee unable to fulfill the purpose of allotment cannot retain rights over public land. It is also pertinent to note that 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. As a consequence, effective ownership and management control of the allottee has stood transferred to a private commercial entity without any prior approval of the lessor.

4: Non-Cooperation in Joint Development: 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 - Avoided coordination efforts This frustrated the purpose of the allotment. It is also relevant that the Hon'ble 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.

5: Non-Compliance and Misuse of Land: Instances were noted of: - Unauthorized/commercial usage - Requests inconsistent with institutional use (e.g., leasing a substantial portion commercially) Such actions were contrary to allotment conditions.

6: Unsatisfactory Response: UNI's reply to the Show Cause Notice was found vague and unsupported, with no substantive justification for prolonged inaction.

7: Conditional Nature of Allotment: The Court reaffirmed that the allotment was not absolute ownership, but a conditional grant, liable to cancellation upon breach of terms.

8: Public Interest Consideration: The land, situated in a prime location, was meant for institutional/public use. Decades of non-utilization amounted to wastage of valuable public resources, warranting intervention.

Further Government sources detailed the sequence of events as:

--Land allotted to UNI (1979 onwards). The condition was to, build composite office within time limit

--No construction was carried out for decades (40 plus years) |

--The Government gave multiple chances (1986, 1999, 2000 revisions)

--However there was still no action by UNI

-- UNI actions further worsened the situation; there was no agreement with co-allottees and No coordination with meetings being skipped

--UNI admitted financial inability (2022) and fefused or sighted inability to participate in construction

--Obstructed Press Council (co-allottee)

-- Did not vacate land and blocked development

--Misuse of land; was used for commercial purposes (like running a canteen etc.)

-- A show Cause Notice was issued in 2023 hoever there was a weak and vague reply by UNI

-- According to the Court's analysis the fundamental condition was violated and the long delay unjustified

-- No intent or capacity was shown and public land was wasted

Thus a final decision was taken. The cancellation was held valid and the L&DO in compliance of the High Court's judgment, took possession of 9 Rafi Marg. (ANI)