Telangana not keen on Reliance waiver

Hyderabad: The Telangana state government has initiated the process to take back land allotted to the controversial Emaar-MGF project and Reliance ADAG on the city's outskirts.

While the 535-acre Emaar project was conceived by the N. Chandrababu Naidu-led Telugu Desam government in 2003, the controversial dilution of APIIC's stake in the project took place during the YSR-led Congress government in 2005. The 100-storey Reliance tower project was conceived by the YSR government in 2007, which allotted 76 acres.

But the Emaar project got mired in legal disputes in 2010 when the CBI started a probe into irregularities in the sale of villa plots to some influential persons for throwaway prices. About 100 film stars, politicians and celebrities were questioned by the CBI for purchase of 135 villa plots sold for just Rs 5,000 per sq. yard, when the market rate was nearly Rs 60,000, causing a huge loss to the government.

In the case of Reliance tower, the group had agreed to pay Rs 527 crore, but paid only half the amount. The firm is now said to be seeking waiver of the remaining amount and penal charges to revive the project, which the government is not keen on.

In the case of the Emaar project, about 150 acres have been utilised to build apartments on 14 acres and plots were sold over an extent of nearly 100 acres.

Over 350 acres still remains unutilised, which the TS government now wants to take back. Since the lands allotted to both these firms, in Manikonda and Manchirevula, command huge real estate value, the government has stepped up measures to resume these land parcels and utilise them to generate revenues for the state exchequer.