Change in land use nod jolts Amritsar housing

The Parkash Singh Badal government's decision to withdraw the decision that allowed changes of land use (CLU), approval for which was granted to promoters of mega-housing projects in Punjab, has put a question mark on the future of three projects in Amritsar.

Prices of real estate here, which saw a surge for the first time since terrorism in the state ended, will be adversely affected and can be a deterrent to investors in Punjab.

The three local residential mega projects are Global City, promoted by Tewari Gangahar Infrstructure; Satish Estates, promoted by Satish Aggarwal; and Met Calf.

Real estate developers are of the view that the government's decision would affect not only them but also customers and loan agencies.

Krishan Sharma, director, Tewari Gangahar, said his company's project Global city, spread on 121 acres with an investment of Rs 200 crore, had already sold plots to more than 1,500 customers.

He said the company followed the established norms of the government and got the no-objection certificates (NoC) from seven or eight departments. He said Global City did not have industrial units around its 1,000 metre project.

He feared that the government's step would reduce revenue generation largely and discourage investors from investing in the state.

He urged the government to review its decision in the larger interest of the industry and small investors who had purchased land from their hard earned money to build their dream homes.

When asked about the future course of action to deal with the changed situation he replied that he would first meet the government to urge it to review its decision and thereafter to adopt any strategy to counter the move.

Ashish Sehgal, General Manager Marketing, Heritage Group, which is developing, Heritage City on 55 acres and Heritage Forest on 80 acres for residential purposes, said that in the changed scenario fallout on market would be extremely negative.

The people, who have already bought plots, would feel cheated and no new buyer would turn up to procure.

Panic has already spread among people and they are watching the situation with utmost care and are contemplating to shed their share in the near future if the situation persists.

They asked why the CLU of Mall road not changed. Once known for its shady trees it has given way to multiplexes and malls and changed the old character completely.