January 15, 2015 2:32:22 pm
BY: VIVEK GUPTA
In its latest order on the controversial nine-year-old residential project, Prideasia in the IT Park, the arbitrator appointed by the Supreme Court imposed Rs 50 crore interest liability on the local administration.
However, the administration is in winning situation as the New Delhi-based private realtor Parsvnath Developers Ltd has been directed to return the 123 acres of prime government land, worth hundreds of crore, within one month to the administration along with Rs 20 crore as compensation.
The residential project was stuck in arbitration between the Chandigarh Housing Board and Parsvnath Developers Ltd since 2009 after latter’s plan to develop housing project on local administration’s 123 acres of land in IT park did not take off due to lapses in the implementation of the project.
Of the total land cost of Rs 821 crore, the builder had deposited Rs 517 crore to the administration but did not submit rest of the amount, following which the project grounded and both the parties went in to the arbitration.
In the 300-page judgment delivered by on Monday a retired judge of the Supreme Court, Justice RV Raveendran, he directed the administration to refund Rs 567 crore to the private developer which include Rs 517 crore of its principal deposit and Rs 50 crore additional interest liability.
But at the same time, the arbitrator ordered Parsvnath to remove all its belonging on the project land with in one month and return the possession of vacant land to the administration at the earliest along with Rs 20 crore compensation
Further, the arbitrator also directed the developer to immediately clear the mortgage on 4.7 acres of land on which it had raised Rs 175 crore of bank loan to start the project.
Further, all approvals, clearances, lease hold agreements, entitlement, privilege benefits, agreed between Chandigarh administration and Parsvnath Developers Ltd on this project stand cancelled, as stated in the judgment.
The arbitrator further cancelled all the contracts which Parsvnath entered with any third party for this project. Secretary of the Chandigarh Housing Bard, Mandeep Kaur, who was one of the witnesses in this case said that the overall award was satisfactory as the housing board had put a lot of hard work to get back possession of land.
Sources said that since the arbitrator had directed the administration to refund its part of liabilities at the earliest, it had already begun the process to comply with the directions of the judgement.
Meanwhile, the buyers who had bought flats in the Prideasia Housing Project will receive their principal deposits both from Parsvnath and Chandigarh Housing board in 70:30 ratio.
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