)
Odisha’s Industrial Infrastructure Development Corporation (Idco), the state agency for acquiring land, has served a showcause notice to real estate major DLF for allegedly violating the terms of a land lease agreement.
DLF was allotted 54 acres at the Chandaka industrial estate, on Bhubaneswar’s outskirts, for developing a Rs 1,000-crore Infopark project. Space in the project was supposed to be leased out to IT players. The lease-cum-development pact between Idco and DLF was signed in November 2006.
“Idco plot no 90, measuring an area of 54 acre, was allotted and handed over to you in August 2007 for the establishment of an IT and non-IT built-up space. It has been brought to our notice that you have contravened the terms and conditions of the agreement/lease,” said a letter from Idco to DLF.
The showcause notice claims DLF has not used 901 per cent of the land, contravening Schedule 1 and Schedule 9.1 of the agreement. The real estate developer has 15 days to respond. DLF officials were unavailable to comment.
According to the agreement, the construction was supposed to start by June, 2009. There were three milestones — developing the 4,00,000 sqft built-up office space within 24 months of beginning construction; ramp-up the space to 1 million sqft in the next 48 months; and to 1.5 million in 72 months.
DLF started work only in July, 2011. It is expected to be completed by 2017.
Initially, it was supposed to be a special economic zone (SEZ). But after the denotification of the SEZ status for the project, DLF had announced that they would develop it as a Software Technology Parks of India project.
Besides the IT block, the project was also supposed to have a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sqft.
For the luxury hotel, DLF has tied up with international chain Hilton.
In the first phase, DLF had committed an investment of Rs 300 crore to develop the IT block, with a built-up area of 5,70,000 sqft.
The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people.
