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Haryana govt plans to seize undeveloped sites



TIMES NEWS NETWORK[ TUESDAY, OCTOBER 24, 2006 02:16:20 AM]

 

NEW DELHI: If you are a developer and you have been allotted land for real estate development in Gurgaon five years ago; hurry up, don’t wait more for jacking up the land value. The Haryana government plans to attach lands from those developers who have not started minimum permissible construction on the allotted sites and have been sitting on it for more than five years.

The state government also plans to make it a rule that all sites offered for development to private builders must start construction on it within five years of land allocation. Failing which land will be taken by the state on circle rates.

For in-stance, the present circle rate in Gurgaon is around Rs 55 lakh per acre, against the actual market price of around Rs 4-5 crore.

“The move is meant to ensure that more land is available for actual development in the area. The plan is to make it mandatory for those in possession of ‘urbanisable’ land to start construction within a reasonable time frame of procuring the property. Another important concern is to keep cash-rich speculators at bay,” HUDA administrator SP Gupta said.

According to sources, at present, over 450-500 acre of such urbanisable land in prime commercial and industrial locations, which have been taken up by some well known developers as well as cash rich individuals, have not seen any development over almost a decade.

“However, nothing is clear as yet, as to which all land will actually fall in the urbanisable category, as some objections have been pointed out at the draft master plan,” an HSIDC official said.

The present situation has led to artificial land scarcity, particularly in larger cities. Addressing this issue is one of the prime concerns now.

Analysts feel the worst-hit would be cash-rich investors and financiers, who had all along made a killing. The biggest beneficiary would be the great Indian middle class, for whom owning the dream house may once again become a realistic proposition.

Says real estate consultancy Realty Verticals director Rajan Ahuja, “It will indeed be a welcome move as far as countering land hoarding is concerned. But the government needs to be practical about the whole issue. As a matter of fact, no credible developer indulges in hoarding.”

 

By vayaM CS