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Visakhapatnam development body to get Rs 70 crore in PPP housing project settlement

Visakhapatnam development body to get Rs 70 crore in PPP housing project settlementVISAKHAPATNAM

: The Visakhapatnam Metropolitan Region Development Authority (

VMRDA

The erstwhile Visakhapatnam Urban Development Authority (Vuda), later transformed into VMRDA had signed an agreement with L&T Vision Ventures Limited for the development of a housing project in public-private partnership model around 11 years ago.

However, Vuda could not hand over the required land parcel to the developer. Aggrieved over the delay, L&T Vision Ventures Limited issued legal notices to Vuda, claiming damages of about Rs 176 crore.

After a series of deliberations and communique, the state government has accorded its approval to VMRDA to go ahead with the sale deed of 31.3 acres at an outright sale basis of Rs 1.53 crore per acre as was decided in 2008.

Speaking to TOI, VMRDA metropolitan commissioner P Basanth Kumar said that the developer will now withdraw all legal claims against the VMRDA. “Moreover, the housing project will be realised. Recently, the state cabinet has taken a final decision pertaining to another PPP project with Radiant Developers Pvt Ltd. It would alone fetch the VMRDA about Rs 90 crore,” Basanth Kumar added.

It all started when Vuda entered into an agreement with L&T Vision Ventures Limited for a 55-acre housing project in Vepagunta in 2007.

The forest department raised objections over the ownership of the land as it was located in the reserve forest block. The developer then asked for a suitable alternative land. The then vice chairman of the erstwhile Vuda requested the state government to consider allotment of 49.33 acres in Kommadi village.

Earlier, 86 acres of land in total in survey number 7, including the carved out survey numbers 163, 164 and 165 of Kommadi village, was handed over to the Vuda in 2005.

The state government allotted about 42 acres to the AP Housing Board in 2007 out of the 86 acres and in turn the Housing Board transferred the land to a private developer. The Vuda authorities and the Housing Board then conducted a joint inspection on their respective allotted lands.

During the inspection, it was found that there was a discrepancy in fixing of the village boundary between Kommadi survey number 7 and the adjoining survey number of Paradesipalem village.

As a result of the discrepancy, an extent of 23.89 acres was found to be overlapping in both the survey numbers. Finally, it was estimated that only 22.71 acres was available with the Vuda to be given to L&T Vision Ventures Ltd. Meanwhile, the developer issued legal notices to Vuda.

Later during the discussions, the developer requested the government to allot the entire land of 49 acres in a single parcel. Finally, the VMRDA managed to find 31 acres land to allocate to L&T Vision Ventures Limited.


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