The Raheja group has informed the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) that it would restore the latter's equity in the 110-acre Mindspace IT project to 11 per cent from the present near zero level.
When contacted APIIC vice-chairman and managing director BR Meena confirmed the development stating that the company did not attach any conditions for reversal of its decision.
The company had subsequently reduced APIIC 's equity to 0.06 per cent on the grounds that it had failed to infuse additional capital in the project to retain the original stake.
In 2003, the state government allotted the above land to K Rahejas for the development of IT Park in Hitec City while taking 11 per cent equity in the project towards allotment of land.
After assuming office as the head of APIIC in December 2009 Meena, a senior IAS officer, asked the company to restore the original equity, to which the company originally refused concede to his request.
Though no reason has been given behind the company's latest move, Raheja’s decision is viewed in the light of a similar case related to a joint venture integrated township project between Emaar and APIIC, which is not being investigated by the CBI.
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“We have been requesting the company to restore our stake in the project. Now they have accepted the request,” Meena said. He said the company’s decision will be placed before the board of APIIC for further action.
Spread across a built-up space of 4 million square feet, the project was conceived at an investment of Rs 400 crore.