No nod to two IT Park projects, Chandigarh Housing Board offers to return 123 acres

Tribune News Service

Dushyant Singh Pundir

Chandigarh, April 6

With the National Board for Wildlife (NBW) denying approval to two proposed housing projects at IT Park, the Chandigarh Housing Board (CHB) has offered to return nearly 123 acres to the UT Administration and also sought Rs 1,000 crore in compensation for expenses incurred on the projects.

After approval by the UT Administrator in 2017, the CHB had planned to build 728 flats in three categories in seven-storey towers on plot Nos. 1 and 2, spread over 16.6 acres, at IT Park for general public. Besides, it was to construct flats for MLAs and officers of Punjab and Haryana on plot No. 7.

However, the NBW in October last year rejected the CHB’s proposal to grant approval to its two proposed projects — General Housing Scheme on plot Nos. 1 and 2 and Government Housing Scheme on plot No. 7 — at the IT Park. Turning down the proposal, the Ministry of Environment, Forest and Climate Change stated after discussion, the standing committee of the NBW observed the development of high-rise buildings near the Sukhna Wildlife Sanctuary would lead to disturbance in the migratory paths of the birds. “The waste generated along with noise and air pollution arising as a result of allied activities in these townships will have a deleterious effect on the sanctuary and birds,” the ministry had stated, adding the standing committee, therefore, decided to reject the proposal.

In a letter to the Secretary Estate, UT Administration, CHB’s Chief Executive Officer Yashpal Garg stated the board had requested the Deputy Conservator of Forests (Wildlife) to take up the matter with the standing committee for a review. “However, the chances of getting wildlife clearance are bleak and in case permission could not be obtained from the NBW, it is requested the possession of the land may be taken back and the CHB be compensated for the expenses to the tune of nearly Rs 1,000 crore it has invested on the project,” stated the CEO.

The letter further stated the CHB had also taken up development works in the IT Habitat i.e. construction of roads, underground RCC cable trench (service duct), central green, sewer, storm and waterline, etc. for which consent for works was granted by the Chandigarh Pollution Control Committee and also the no-objection certificate was given by monitoring committee of the eco-sensitive zone of the wildlife sanctuary. Apart from development works, certain consultancy works related to the project were also awarded. However, agreements of all such development/consultancy works have been closed.

Going back to the allotment of the land, the letter stated on December 1, 2005, then UT Administrator designated CHB as the nodal agency for the development of the IT Habitat project. The land measuring 123.79 acres was allotted to the CHB on a freehold basis vide allotment on August 24, 2006, for an amount of Rs 18.50 crore. Further, the CHB made a deed of conveyance and paid stamp duty of Rs 1.11 crore and also paid Rs 21.69 crore towards shifting of high-tension wires hindering the project.

The CHB selected Parsvnath Developers Ltd (PDL) through competitive bidding as the developer of IT Habitat project on public private partnership (PPP) model with the highest bid of Rs 821.21 crore. Additionally, PDL was to pay 30% of the share received from the sale of residential units as development fee. On October 6, 2006, the possession of 123.79 acres was given to PDL.

In 2008, then Finance Secretary of UT Administration directed the entire bid amount and revenue share received by the CHB belonged to the UT Administration and was to be kept in a separate joint account of the CHB and administration. It was to be utilised for the multi-storey small flats and other specifically identified projects of the UT.

The PDL made a payment of Rs 516.53 crore against the bid price of Rs 821.21 crore. The CHB spent part of the funds on various projects of the administration, deposited Rs 278.56 crore to the Consolidated Fund of India and Rs 91.36 crore as income tax on account of payment received from PDL. A sum of Rs 139.81 crore was withheld owing to litigation with the Income Tax Department on account of disallowing of losses of the PDL, which failed to develop the project.

As the project could not take off due to various reasons, the PDL entered into arbitration and won the award on January 9, 2015. A revocation deed was signed on February 4, 2015.

On the recommendation of the committee comprising Finance Secretary, UT, CHB Chairman and CHB CEO on January 28, 2015, approval was made by the UT Administrator on February 2, 2015, for making payment of the award to the PDL. Further, the Administrator approved that as the CHB had been acting on behalf of the administration, it had to be duly compensated for loss of interest on account of foreclosure of fixed deposits or interest on loans required to be raised for payment of the amount to the PDL in cash or by giving the CHB an opportunity to develop the land to recover its investments/losses, if any. Accordingly, the CHB made payment of Rs 572 crore to the PDL on February 4, 2015, and took possession of land at IT Park on February 8, 2015.

The Parsvnath controversy

2005: CHB is picked by the UT Administrator as the nodal agency to develop IT Habitat project

2006: UT allots 123.79 acres to CHB; Parsvnath wins bid & pays Rs 516.53 cr to CHB, gets the possession for development

2008: UT directs CHB to keep bid amount and revenue share received by it in joint account to be utilised for flats and other projects

2015: Parsvnath wins arbitration after IT Habitat project fails to take off; CHB pays Rs 572 cr, takes back possession of land

Planned flats for public, MLAs

• CHB was to build flats for public on plot Nos. 1 and 2 at IT Park; besides flats for MLAs & officers on plot No. 7, but National Board for Wildlife refused to give nod
• Board cited disturbance in migratory paths of birds due to proposed construction of high-rise buildings near the Sukhna Wildlife Sanctuary as the reason for denial of green approval
• With chances of getting clearance slim, CHB’s CEO urged the Secretary Estate, UT Admn, to take back possession of land and compensate it for expenses incurred
• Expenses were incurred on account of development works such as building roads, trenches, laying sewer, storm and waterline, consultancy works, etc.

Expenses incurred by board

Rs 572 cr Arbitration award to Parsvnath

Rs 18.50 cr Paid to UT Admn to acquire 123.79 acre

Rs 1.11 cr Conveyance deed, stamp duty

Rs 21.69 cr Spent on shifting high-tension cables

(Remaining amount spent on development, as claimed by CHB)

Chances of green approval bleak

Chances of getting wildlife clearance are bleak and if nod is not obtained, possession of land be taken back and CHB be compensated. — Yashpal Garg, CHB CEO

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