The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is in a soup over land it allotted for an information technology project in a Hyderabad neighbourhood. Several property developers who had bought land for the Hyderabad Knowledge City project in 2008 are unable to put the real estate into use because the area is a heritage site and no construction work is allowed there.Some of them are considering legal action, accusing the corporation of hiding key information.
Companies such as DLF (which bought 31 acres), Puravankara Projects (20 acres),My Home Industries (5 acres), Salarpuria Sattva (30 acres) and ITC (5 acres) paid 20 crore an acre after winning an auction.
Projects with total investment of.15,000 crore were to come up in the area.The Andhra Pradesh government had declared 532 acres in Raidurg village,including the land allotted to these builders,as heritage precinct in 2003.
Most of these companies have lost faith in government agencies and are happy if the government returns the money they have paid in 2008, said the chief executive of one of the companies, who requested anonymity.Developers dont want to take up the projects as they were denied permissions to take up construction of any civil structures on the land parcel, he added.
APIIC Managing Director Jayesh Ranjan said not all the land allotted by it in Raidurg village come under heritage status.But he didnt explain the basis for this claim.Moreover,he said the agency has agreed to return the money the builders paid or give alternate land to those affected.The government has set up a committee to find a solution over the heritage precinct issue,and the report of the committee is still awaited,industry executives said.
The agency had sold 105 acres to some 13 companies for.2,000 crore for the Hyderabad Knowledge City project.According to estimates,the proposed project covering 11-12 million square feet would have created about one lakh jobs.
Additionally,earlier this year,the state government announced a.350-crore GAME City Project there.According to APIIC,the 30 acres allotted for the GAME City project for housing gaming,animation,media and entertainment companies dont come under the heritage tag.
We paid premium price for the land as against the current valuations of.10-12 crore per acre, said J Rameswar Rao,who is the chairman of My Home industries.We are carefully examining all the possibilities to initiate the legal course of action including the arbitrage mechanism within a month.
According to the builders and government officials,the layout shown by APIIC hasnt yet received approval from the Greater Hyderabad Municipal Corporation. While Salarpuria Sattva is awaiting clearance from the government, Puravankara Projects has opted for the refund of.403 crore it had paid and has decided to withdraw from the project.The project has been delayed and we are waiting for the clearance from the government agency, said Bijay Agarwal,managing director of Salarpuria group.
The company had planned to build office space on the 30 acres land that was allotted to it.New Delhi-based DLF has opted to move its project that was initially planned in Knowledge City to the proposed GAME City, as the government agency claims this land is free from problems.If the Information Technology Department agrees to relocate DLF, the APIIC is ready to allot land to the company under the GAME City project, Ranjan said.
DLF did not respond to an email seeking comment.The property market in Hyderabad has been going through a bumpy ride for three-four years because of political unrest over the Telangana issue.
Courtesy:(Excl Ventures News.)
Companies such as DLF (which bought 31 acres), Puravankara Projects (20 acres),My Home Industries (5 acres), Salarpuria Sattva (30 acres) and ITC (5 acres) paid 20 crore an acre after winning an auction.
Projects with total investment of.15,000 crore were to come up in the area.The Andhra Pradesh government had declared 532 acres in Raidurg village,including the land allotted to these builders,as heritage precinct in 2003.
Most of these companies have lost faith in government agencies and are happy if the government returns the money they have paid in 2008, said the chief executive of one of the companies, who requested anonymity.Developers dont want to take up the projects as they were denied permissions to take up construction of any civil structures on the land parcel, he added.
APIIC Managing Director Jayesh Ranjan said not all the land allotted by it in Raidurg village come under heritage status.But he didnt explain the basis for this claim.Moreover,he said the agency has agreed to return the money the builders paid or give alternate land to those affected.The government has set up a committee to find a solution over the heritage precinct issue,and the report of the committee is still awaited,industry executives said.
The agency had sold 105 acres to some 13 companies for.2,000 crore for the Hyderabad Knowledge City project.According to estimates,the proposed project covering 11-12 million square feet would have created about one lakh jobs.
Additionally,earlier this year,the state government announced a.350-crore GAME City Project there.According to APIIC,the 30 acres allotted for the GAME City project for housing gaming,animation,media and entertainment companies dont come under the heritage tag.
We paid premium price for the land as against the current valuations of.10-12 crore per acre, said J Rameswar Rao,who is the chairman of My Home industries.We are carefully examining all the possibilities to initiate the legal course of action including the arbitrage mechanism within a month.
According to the builders and government officials,the layout shown by APIIC hasnt yet received approval from the Greater Hyderabad Municipal Corporation. While Salarpuria Sattva is awaiting clearance from the government, Puravankara Projects has opted for the refund of.403 crore it had paid and has decided to withdraw from the project.The project has been delayed and we are waiting for the clearance from the government agency, said Bijay Agarwal,managing director of Salarpuria group.
The company had planned to build office space on the 30 acres land that was allotted to it.New Delhi-based DLF has opted to move its project that was initially planned in Knowledge City to the proposed GAME City, as the government agency claims this land is free from problems.If the Information Technology Department agrees to relocate DLF, the APIIC is ready to allot land to the company under the GAME City project, Ranjan said.
DLF did not respond to an email seeking comment.The property market in Hyderabad has been going through a bumpy ride for three-four years because of political unrest over the Telangana issue.
Courtesy:(Excl Ventures News.)
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