CSMC warns of taking possession of BoT project if developers fail to settle dispute!

Lokmat News Network

Chhatrapati Sambhajinagar:

The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) municipal commissioner, G Sreekanth, has instructed the developers and the partners of the Build-Operate-Transfer (BoT) project at Siddharth Garden to settle their disputes amicably or else the civic administration would relieve them from the project and initiate the process of taking the possession of the developed property.

It may be noted that 17 years ago, the municipal corporation proposed the construction of a shopping complex on the frontage of the garden on a BoT basis. The project moved at a snail’s pace and is presently lying in limbo due to differences between the developers and the partners. Hence the civic chief gave the above warning to them.

The civic chief reviewed the progress of 10 BoT projects launched by the municipal corporation today. After reviewing, he said, “The allotment of galas has been halted due to conflict between the developers. The CSMC is sustaining severe losses. As per the agreement, we have to acquire our share of the property and also levy the property tax on the total developed property. This is getting delayed, therefore, they should end up their differences amicably or we would take back the property. Besides, few projects have been completed and there are some obstructions in pending projects.”

Differences between the developer and his partner

In 2006, the municipal corporation gave 7000 square metres of land for the construction of a commercial complex and parking bay to Prakash Developer and JV on a BoT basis. Later on, the principal developer gave the sub-contract of development to Atharva and Sunil Developers in 2008. The agreement of the share and the profit was signed between them. Later on, the parking bay was developed on 70,000 square feet of area (which was the share of CSMC) and partial construction was done at the site. Later on, the responsibility of further construction was undertaken by Jaishree Nade, who was a shareholder of 20 pc in the project.

It is alleged that she has kept the principal developers (Atharva and Sunil Developers) and other partners in the dark. On the other hand, the principal developer underlined that she has not done the work in time as per agreement. Hence it deposited the fine of Rs 60 lakh levied by the municipal corporation and obtained the revised permission, said Nade.

There are 80 galas, out of which, few have been sold out and the municipal corporation has granted a stay on the selling of the remaining galas.