Hyderabad: The joint venture projects that the Telangana Housing Board (THB) had taken up in collaboration with the private sector are in limbo and have failed to yield the expected Rs 960 crore revenue. The board has realised only Rs 430 crore has been realised so far.
Of the 21 projects between 2003 and 2006, two were under equity model, while 19 were on a revenue-sharing basis. On competition, they were expected to boost the board’s revenue considering that it had a land bank.
Under the equity model, the land ownership remained with the board while the private entity invested money, and the revenue was shared on a pre-agreed ratio, generally 60:40.
In the revenue sharing model, the cost of land was collected upfront from the private joint venture partner. After the project is executed, the revenue generated is given as a fixed percentage of 1.75 per cent to five per cent, based on the agreement if the venture is for residential or commercial purposes. The first extension of project time was granted in 2009 up to 2011-12 owing to zeroing in on-site and delay in approvals.
The registration of units stopped in February 2012 resulting in myriad litigations. Vigilance, enforcement and CBI enquiries were initiated in 2011-12. After the conditional extension of time was not accepted in 2013-14, a cabinet sub-committee was formed by the then-BRS government to decide on pending issues in 2016.
The committee, comprising Etala Rajendar, T. Harish Rao and Jagadish Reddy, gave the option of payment of revenue share on sales/valuation, with interests (as per original agreements) or payment of double revenue share on valuation as a one-time settlement.
With five per cent of the land earmarked for LIG, 1,217 houses were to be constructed with revenue of Rs 130.44 crore expected from their sale to the board. Till date, 304 LIG houses have been handed over by the private joint venture partners to the housing board but they are yet to be allotted. Around 35 units, which have been completed, are ready to be handed over to the board.
Works on 878 LIG units have not been completed, leading to arbitration proceedings and the matter is pending.
Officials of the department said that failure to form a board, consisting of GHMC and HMDA commissioners, finance department officials and public representatives like MLAs has resulted in policy paralysis. The board can take decisions on many issues along with pursuing the legal cases of the joint ventures.
Devoid of a full time official to pay attention to pending issues, currently V.P. Gowtham, special secretary, and Rajiv Swagruha are looking into the housing board activities.
