Pearls residential projects row: GMADA demands security deposit from banks

Sources said that after issuing a notice to the PACL in March this year to either speed up the development works or face action, the banks associated with the company are told to pay the security money to the GMADA.

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A letter in this regard has also been sent to the associated banks. However, the banks told the GMADA that it is not possible for them to pay the money, as the company is fighting an alleged fraud case with investors in the Supreme Court.

GMADA chief administrator A K Sinha told the Chandigarh Newsline that they have demanded the money from the banks. However, he added that since the company is contesting a case in the Supreme Court, they cannot take any action at present.

“We have written to the banks after issuing a notice in March. The banks told us that the money could only be given after a decision by the Supreme Court. It is obvious that we have written to the banks to forfeit the security deposit of the company, as the development work has not started yet,” said Sinha.

The GMADA directed the company in March to develop sectors 100 and 104 or else face action. The company was issued a licence to develop Pearls City on 41.92 acres in 2014. The licence expired in January 9 this year.