Unitech BDA seeks approval of its draft rejig

Unable to set up its Rs 211-crore residential cum commercial complex in the city within the stipulated period, the major Unitech has raised the Bhubaneswar Development Authority (BDA), with a proposal to rejig project.

The company was to develop the project on 11 acres of land in one of the main places of the city, but now she wants to develop only a quarter of the total land allotted to it.

Unitech, meanwhile, has requested approval of the ADB in this regard and that it is reviewing the proposal.

“Unitech now wants to develop only a quarter of the total area of 11 hectares for residential cum commercial. The real estate player has so far disbursed about Rs 54 crore for the 11-acre field,” said DK Singh, Vice-President of BDA.

Sources familiar with the development had already indicated that Unitech has requested an extension of two years for the project of the BDA to the cash position of real estate was not comfortable Major in the wake of economic recession.

“After paying the initial amount of BDA for the 11 acres of land in March 2008, Unitech had applied for a period of three months for payment of the balance of a lump sum. However, the company had failed to pay the required amount as its cash position was not favorable, “added the sources. Unitech’s alleged delay in payment of the balance of the BDA has given rise to real estate speculation that the player receives a pull-out of the project. In the case of its withdrawal from the project, Unitech is to waive Rs 54 crore it had paid to the BDA. Under the agreement between ADB and Unitech, real estate player has been to develop the 11-acre plot by the end of 2010. In April 2007, Unitech has emerged as the highest bidder for the 11-acre plot auctioned by the BDA. Unitech has agreed a price of Rs 20 crore per acre and DLF who offered a prize call for Rs 11 per acre was the second best bidder.

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