Allahabad High Court Orders CBI Probe into NOIDA Sports City Scam, Flags Misuse of Insolvency Law

The Allahabad High Court ordered a CBI probe into the NOIDA Sports City scam, citing collusion between NOIDA officials and builders.

The 2011 project, meant to develop sports facilities, was misused by builders who focused on residential and commercial projects instead.

The court found that funds for sports infrastructure were siphoned off, and insolvency proceedings were strategically initiated to evade payments and liabilities.

The bench laid down guidelines on consortium rights in insolvency cases, criticized NOIDA’s inaction, and invoked doctrine of "piercing of the corporate veil" to expose fraudulent financial dealings.