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Prideasia project in the doldrums,40 applications withdrawn

The controversial mega-housing project of Parsavnath Developers Limited,in collaboration with the Chandigarh Housing Board.

Written by RituSharma | Chandigarh |
February 3, 2009 12:27:48 am

The controversial mega-housing project of Parsavnath Developers Limited,in collaboration with the Chandigarh Housing Board (CHB),at the Rajiv Gandhi Chandigarh Technology Park has received yet another blow. As many as 40 buyers — out of total 141 — have withdrawn their applications from the Prideasia project.

The project that ran into controversies even before its launch in 2007 recorded the sale of only 141 units of the total 1,314. The minimal number of units sold so far (141) is hardly ten per cent,of which two and three bedroom apartments comprise the major share.

Around Rs 20 crore,meanwhile,has already been paid to the buyers who were seeking refund of their money deposited as the first instalment. “We are a listed company and no employee is allowed to speak to the media 15 days prior to the company results. So I cannot comment on the issue,” said Pradeep Jain,Chairman,Parsavnath.

According to senior officials in the UT Administration,Rs 60 crore was deposited by the buyers for the total 141 units as the first instalment or the booking amount. This booking amount was 10 per cent of the total price of a unit. Most of these buyers are not the residents of Chandigarh.

With the project getting stalled rather than reporting any fresh bookings,it is running into tough times with the withdrawal of existing applications.

CHB chairman Mohanjeet Singh,however,said he was not aware of any such instance and the Board was still receiving enquiries for the project.

As one of the terms stipulated in the agreement,the deadline for the developer to complete the project is June 2009. The project with its exorbitant prices (one-room apartment for over Rs 52 lakh,two to five-bedroom apartments from Rs 1 crore to Rs 3.5 crore and villas for over Rs 6 crore) could hardly generate interest from prospective buyers. The fate of the project,with all the controversies attached now,does not look too bright. Several objections were put on the project,the latest being that by the UT Architecture department that has objected to the underground development at the site. Another major hurdle is the proposed Chandigarh-Baddi rail link that will pass from within the project on an area of around half a kilometre.

Recently,the Administration sealed the escrow account maintained for the project by the CHB and the developer. The step that ceased any further transaction by either party was taken fearing withdrawal of money deposited in the account.

Out of the total bid money of Rs 821.21 crore,the developer has paid only Rs 517 crore to the CHB so far. According to terms,however,the money from the sale proceeds was to be divided in 30:70 ratio — 30 per cent to the CHB and 70 per cent to the developer. The CHB officials claimed that the total 100 per cent was with the Board.

The story so far
* Only 141 units sold so far (total units – 1,314)
* Out of this,40 applications withdrawn
* Only Rs 60 crore earned from the sale proceeds
* Out of this around Rs 20 crore already refunded to the buyers

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