Ayodhya — The Allahabad High Court has slammed the Uttar Pradesh authorities for evicting six shopkeepers and demolishing their shops for a government hospital project without determining their leases or proposing rehabilitation or compensation for them. The court described the conduct of the authorities, especially that of the District Magistrate, Ayodhya, as 'highly condemnable'.

Source: Live Law

A Lucknow Bench of Justice Shekhar B. Saraf and Justice Amitabh Kumar Rai, in its order of October 12, 2026 in Mohd. Naeem and 5 Others v. State of U.P. and 2 Others (Writ-C No. 9961 of 2026), said that although constructing a 300-bed super-specialty hospital was in the public interest, the shopkeepers could not be 'thrown out' without alternative arrangements, as they were earning their livelihood through their businesses. The Bench held the action violated Articles 19 and 21 of the Constitution. The order is an interim order; the petition has not been finally decided.

Source: LawChakra

Shops held on 30-year leases since 2000

According to the petitioners, the Sitapur Eye Hospital Society, Faizabad, allotted them shops on lease for 30 years in 2000 under the Sitapur Netra Chikitsalaya Complex Niyamawali, through an auction process, on payment of a registration fee of Rs 500, security of Rs 25,000 and a minimum reserved premium of Rs 80,000. Possession letters were issued on February 28, 2000, with rent payable from March 1, 2000, and the rules treated the allotments as leasehold arrangements renewable after every 30 years, the court noted.

The petitioners challenged an order dated July 31, 2026 passed by the Ayodhya District Magistrate. The court recorded its surprise that the lessees were asked to vacate without determination of their leases or any proposal to rehabilitate or compensate them.

What the court directed

The Bench directed the respondents to file a counter-affidavit within three weeks indicating the steps proposed to rehabilitate the petitioners or compensate them in lieu of the shops from which they were evicted and which were demolished. The counter-affidavit must be filed by an officer not below the rank of Secretary, Medical and Health Department. The matter has been listed for November 16 as a fresh case.

Source: Live Law