Land Acquisition
Farmers Reject LDA's Doubled Compensation Offer in Prabandh Nagar Land Dispute
The Lucknow Development Authority (LDA) is planning to develop a residential area on Hardoi-Sitapur bypass named Prabandh Nagar, spread across 2,500 acres including 1,500 acres of residential area and 1,000 acres of a gigantic theme park. A decade-long land dispute reached a turning point in September 2019 when the LDA agreed to provide compensation to farmers up to double the circle rate, which will be adjusted by increasing the value of the plots. Despite the concession, farmers rejected the offer and remain unwilling to surrender land.
| Total Project Area | 2,500 acres |
|---|---|
| Residential Component | 1,500 acres |
| Theme Park Component | 1,000 acres |
| Acquisition Delay | 10 years |
| Farmer Demand vs LDA Offer | 4x vs 2x circle rate |
| Compensation Decision | September 2019 |
| Affected Villages | Allu Nagar Digaria, Ghela, Kakauli |
| Status (as of November 2020) | Unresolved; compensation unpaid |
The Dispute
The project is stuck in land acquisition for the past 10 years because farmers are not ready to give away their land demanding 4 times compensation than what was being offered by LDA. LDA claims that whenever they go to acquire lands, builders get involved with farmers, agitate against the authority and protest in front of the office. The impasse blocked all development progress on the strategic bypass corridor property.
LDA's Compromise
The former Vice-Chairperson, Rajiv Agarwal, conducted many meetings between farmers and LDA officials to settle the conflict. In September 2019, the LDA agreed to provide compensation to farmers up to double the circle rate, which will be adjusted by increasing the value of the plots. This doubled offer represented a significant shift from LDA's original position but fell far short of farmer demands.
Farmers Reject Offer
The double-circle-rate compensation failed to break the deadlock. In November 2020, it was reported that the city management plan joining Sitapur Road and Hardoi Road is set to be developed after ten years, with Allu Nagar Digaria, Ghela and Kakauli villages to be affected. Farmers from these villages remained unpaid and refused to cede their land, leaving the 2,500-acre project stalled indefinitely.
Project Scope
Prabandh Nagar will be developed on approximately 2,077 acres along IIM Road with an estimated cost of Rs 4,500 crore. The township will include residential, commercial, and mixed-use areas, along with a large water body and green belt development. The strategic location is approximately 15 km from the city center, making it easily accessible from key areas such as Hazratganj, Kaiserbagh, and Gomti Nagar.
Land use
Frequently asked questions
What is Prabandh Nagar?
A major 2,500-acre urban township proposed by the Lucknow Development Authority on the Hardoi-Sitapur bypass, comprising 1,500 acres of residential and 1,000 acres of theme park infrastructure.
Why has the project been delayed?
Land acquisition disputes with farmers who rejected initial LDA compensation offers and demanded significantly higher rates. The project has been stuck for 10 years.
What was the September 2019 agreement?
The LDA offered to compensate farmers at double the circle rate (the government-set minimum land value), with plot values increased accordingly. Farmers rejected this offer.
Which villages are affected?
Allu Nagar Digaria, Ghela, and Kakauli—all located on or near the Hardoi-Sitapur bypass corridor.
What do farmers demand?
Farmers have demanded compensation at four times the circle rate, or double what LDA eventually offered—a gap that remains unresolved.
What is the project's estimated cost?
Approximately Rs 4,500 crore for the full township development along IIM Road.