Telangana to not take back land from corporates for now

Hyderabad: The Telangana state government has shelved its efforts to reclaim unused lands from the Reliance ADAG, Emaar-MGF and the Jubilee Hills Landmark projects.

Reliance ADAG had failed to begin construction of the 100-storey tower in the Financial District in Manchirevula in the city outskirts after obtaining 76 acres from the government in 2007 while the other two joint-venture projects are yet to be completed due to legal and other issues. The TS government had set up a committee headed by the chief secretary in October 2015, to recommend a “legal way out” for reclaiming the unused lands. The committee after holding meetings for a year submitted the report in October 2016. The committee opined that the government’s exit from the JV projects would not be possible at this stage as a few structures had already come up, but the government could start the process of reclaiming the unutilised lands in these projects.

It also suggested the reclaiming of the land allotted to Reliance ADAG since no construction activity had taken place since 2007. Moreover, the company had paid only half the cost of the land to the government.

KCR wanted to avoid confrontation
However, after sitting on the report for several months, it is learnt that the state government has now asked the officials not to act against these projects till further orders.

Official sources said that Chief Minister K. Chandrasekhar Rao wanted to avoid ‘unnecessary controversies’ and confrontations with the corporates, which included prominent banks, infrastructure companies and investors, at a time when the TS government was planning to hold its first global investors meet sometime between October and December this year.

“Any controversy or confrontation with the major Corporates, ahead of the global investors meet could attract headlines which would not augur well for the government and for this reason no further proceedings would be initiated against these three projects for now. Moreover, CBI cases are pending in court with regard to Emaar, which could invite legal trouble,” they said.

In Emaar-MGF, the villa plots and flats have been sold and have changed hands multiple times over the last ten years. In the case of Reliance Towers, the firm had paid over Rs 250 crores of of the Rs 527 crores to the government in 2007, for the 76 acres. In the case of the Landmark project, the realty firms paid Rs 335 crores to the government in 2006.

The 535-acre Emaar-MGF project for constructing a residential township comprising luxury villas and flats, a golf course, etc., was approved by the TD government in 2003 but 200 acres is still lying unused.

In the costliest real estate deal in the city in 2006, the ICICI Ventures-led consortium had purchased 5.85 acres for a whopping Rs 335 crores from the government for the Landmark Project. However, the project failed to take off.

The consortium is now seeking nearly Rs 800 crores as compensation for handing back the land.