Leading real estate developer DLF Ltd is on the verge of facing stringent action from the Odisha government for keeping idle a large chunk of land, which was given to it for developing Rs 1,000-crore Infopark project.
Of the 54 acres allotted to DLF for the project, only seven acres have been utilised till date, said a highly placed government source with direct knowledge of the matter.
"DLF has miserably failed in keeping its project commitments. Though we allotted 54 acres to them in 2007, they have used only seven acres so far. DLF was supposed to develop five million sq ft built-up space, but progress on the Infopark project has been quite tardy. The company applied for an extension of project timeline in 2012. Its request was rejected since we felt that such concessions to the developer are uncalled for. Now, we have issued a showcause notice to DLF and asked the company authorities why the land should not be resumed in view of their lukewarm progress," the source told Business Standard.
Under Idco Act, the agency has powers to resume land if it is kept unutilised, the official said.
DLF officials were not immediately available for comments.
In February 2015 too, Idco had issued showcause notice to DLF Ltd for violating the terms and conditions of land lease deal.
The lease cum development agreement in respect of 54 acres of land was signed in November 2006. The land was handed over to DLF in August 2007 for establishment of IT and non-IT built-up space.
As per the lease agreement, DLF was to begin construction work on the centre by June 2009. The agreement listed three milestones - the first being developing 400,000 sq ft office space within 24 months of commencement of construction work. The office space was to be subsequently ramped up to one million sq ft in 48 months and finally to 1.5 million sq ft within 72 months in the next two phases.
DLF started work on the project in July 2011. Initially, the project was to be developed as an SEZ (Special Economic Zone) facility. After de-notification of the SEZ status, DLF had announced that it would develop the project under the STPI (Software Technology Parks of India) scheme.
The DLF Infopark project was to be built in three phases. It consisted of an IT block, a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sq ft.
For setting up the luxury hotel, DLF had tied up with Hilton, an international hotel chain.
In the first phase, DLF had committed an investment of Rs 300 crore for developing 570,000 sq ft IT workspace of international standards.
The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people in sectors like IT and ITes (IT enabled services), retail and hospitality.
Of the 54 acres allotted to DLF for the project, only seven acres have been utilised till date, said a highly placed government source with direct knowledge of the matter.
"DLF has miserably failed in keeping its project commitments. Though we allotted 54 acres to them in 2007, they have used only seven acres so far. DLF was supposed to develop five million sq ft built-up space, but progress on the Infopark project has been quite tardy. The company applied for an extension of project timeline in 2012. Its request was rejected since we felt that such concessions to the developer are uncalled for. Now, we have issued a showcause notice to DLF and asked the company authorities why the land should not be resumed in view of their lukewarm progress," the source told Business Standard.
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DLF had got the land at a concessional rate of Rs 82 lakh per acre. If the same parcel of land is auctioned now, it could fetch us 4-5 times more, he stated. The showcause notice to DLF has been issued by state-owned Odisha Industrial Infrastructure Development Corporation (Idco).
Under Idco Act, the agency has powers to resume land if it is kept unutilised, the official said.
DLF officials were not immediately available for comments.
In February 2015 too, Idco had issued showcause notice to DLF Ltd for violating the terms and conditions of land lease deal.
The lease cum development agreement in respect of 54 acres of land was signed in November 2006. The land was handed over to DLF in August 2007 for establishment of IT and non-IT built-up space.
As per the lease agreement, DLF was to begin construction work on the centre by June 2009. The agreement listed three milestones - the first being developing 400,000 sq ft office space within 24 months of commencement of construction work. The office space was to be subsequently ramped up to one million sq ft in 48 months and finally to 1.5 million sq ft within 72 months in the next two phases.
DLF started work on the project in July 2011. Initially, the project was to be developed as an SEZ (Special Economic Zone) facility. After de-notification of the SEZ status, DLF had announced that it would develop the project under the STPI (Software Technology Parks of India) scheme.
The DLF Infopark project was to be built in three phases. It consisted of an IT block, a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sq ft.
For setting up the luxury hotel, DLF had tied up with Hilton, an international hotel chain.
In the first phase, DLF had committed an investment of Rs 300 crore for developing 570,000 sq ft IT workspace of international standards.
The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people in sectors like IT and ITes (IT enabled services), retail and hospitality.