HSIIDC produces figures to show ‘no loss’ in land deal with DLF

The HSIIDC was reacting to the CAG report,which indicted it for incurring a loss of around Rs 438.91 crore due to undervaluation of the land. The Principal Accountant General,Haryana,too during a press conference Tuesday,had raised the issue.

The HSIIDC said that in pursuance of notification in August 2003,under section 4 of the Land Acquisition Act-1894,the state government acquired 274.74 acre of land situated in Wazirabad village for development of a Recreation and Leisure Project.

“An award amounting to Rs 55.66 crore was announced on January 19,2006. It had been decided in the year 2004 to join-up about 75 acre of Haryana Urban Development Authority (HUDA) land as part of the project and a decision to invite bids from the private sector through international competitive bidding route was taken. The consultant (M/s IL&FS IDC Limited) was appointed for carrying out valuation of the project land. The consultant,based on market prices,valued the project land at Rs 1683.58 crore. The corporation fixed the reserve price even higher (Rs. 1700 crore)”,the HSIIDC statement claims.

The corporation said that for comparing the price of developed plots with the land sold in the instant case,various cost components (CLU/ License fee/ EDC/ IDC and land for compensatory afforestation) are to be added to the bid amount.

It is only then that the value/cost of land sold in the instant case can be compared with the market value of similarly located plots/land.

“In the said case,the value realisable by Haryana government/ HSIIDC/ HUDA from the bidder comes to Rs 2,572.06 crore (bid amount Rs 1,703.26 crore + statutory charges

Rs 800.00 crore + cost of land for compensatory afforestation Rs 68.80 crore),which is considerably more than the value calculated (Rs 2,142.11 crore) by the Auditor,” the HSIIDC added.