Parsvnath gives three options to UT

With all files pertaining to the project being summoned by the Central Vigilance Commission (CVC) last week,the entire project has come to a standstill.

The developer put the three options before the Administration in a recent letter. Parsvnath said if the Administration could not terminate the contract,it should restructure the project,duly approving the builder’s plans and amending a few clauses in the existing agreement. In case the UT opts for the third option,the developer will get land for the amount that it has already paid while the rest of the land will either be auctioned or put to alternative use.

Confirming the development,a senior UT official said: “There could be many factors that led to sending such a letter — global meltdown,delays on the part of the Administration in clearing the plans,withdrawal of bookings by investors,and of course,the Central Vigilance Commission’s intervention that has further delayed the project. We are yet to make up our mind on which option to choose. The CVC aspect,too,needs to be taken into consideration. It will not be possible to take a decision on any of the ongoing projects till we get a clearance from the CVC.”

Adviser to Parsvnath P K Jain,however,refused to make any comment.

According to sources,the Chandigarh Administration has not yet cleared the complete building plans of the ongoing construction at the Prideasia site. Also,it has failed to provide a complete encumbrance-free land to the builder,as decided in the agreement between the Chandigarh Housing Board and the developer.

In addition,a huge amount of money-around Rs 517 crore-is lying in the escrow account,which the CHB has sealed,fearing the developer may not pay them the balance bid amount of Rs 304 crore. Parsvnath had bagged the project by bidding Rs 821 crore in an open auction about two years ago.

Spread over 123 acres as an integral part of the Rajiv Gandhi Chandigarh Technology Park,the project is a joint venture between Parsvnath and the CHB. It has a saleable residential area of 38.5 lakh square feet and a commercial area of 2.7 lakh sq ft,besides a club,sports centre and a water sports complex of 2 lakh sq ft. The marketing wings of Parsvnath and various banks are marketing the project and money was being collected in the escrow account.

It is also learnt that the collaboration has barely managed to sell 140 units,of which around 60 investors have already asked for withdrawal of their deposits.