CHB returns Rs 567 cr to Parsavnath

Tribune News Service

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Chandigarh, February 4

Finally, bringing the curtains down on the controversial 10-year-old Prideasia project, residential project of Parsavnath in the IT park, the Chandigarh Housing Board (CHB) today returned Rs 567 crore to builders and took back possession of the 123 acre of prime land.

The returned money includes the interest part on Rs 516 crore that had been deposited by the builder with the CHB. Soon after returning the money, the previous sale-deed in favour of the builder was revoked and a fresh sale deed of the land in name of the board was registered at the Sector 17 office of the Sub-Registrar here. “Since the money had been given from the CHB coffers, the board would have to sell properties to generate enough resources to keep it running. At present, the board has resources to pay salaries of employees over the next one year”, said sources.

Delay in paying back the money to the builder in the stipulated period could have cost the CHB an interest of Rs 18 lakh per day.

After mutually agreeing on the terms and conditions of returning the money, the two parties finally implemented the orders of the single Bench arbitrator, Justice RV Raveendran, who had in his order issued last month, told the board to refund the money after deducting the interest penalty on the part of the land cost name made by the builder.

Chairman of CHB, VP Singh, confirmed that the money had been returned and land had been returned to the board.

Due to controversies between the two parties on the implementation of the project, including passing of the maps, it could not be completed on time and the applicants had begun demanding back their money. The builder had gone in for arbitration after the CHB terminated the contract as the former had failed to complete the project within the stipulated time period of three years.

Of the total land cost of Rs 821 crore, the builder had deposited only Rs 516 crore and remaining amount was not deposited.

The project

Parsvnath Developers and the Chandigarh Housing Board launched a scheme seven years ago to develop costly flats and villas at IT Park, Chandigarh. The Housing Board transferred 123 acres as freehold to Parsvnath Developers on November 15, 2005, for a residential and commercial project.

The status of 123 acres of land

As per the understanding between the Chandigarh Administration and the CHB, the latter has returned the money on behalf of the Administration. Either the UT would return the money to the CHB or allow to utilise the land as per the planning approved. Since the planning of the pocket is already approved in the master plan, the CHB could come up a similar housing and commercial project or seek change in the utilisation.