"The cabinet today, after due deliberations, also decided to enter into a supplementary agreement with the Asian Housing Construction Limited (AHCL) which is implementing the project to take back the project while paying back the remaining amount to AHCL," General Administration Department (GAD) minister A L Hek said.
The total cost of construction was initially pegged at Rs 22 crore which has now escalated to around Rs 49 crores after changing of design of the building on several occasions.
The state government has paid an amount of Rs 25 crore to the builders and the remaining amount due for payment is Rs 24 crore, Hek informed.
While a government technical committee had justified the escalation in the budget, the government felt it is taking too long to complete the project.
The project is ninety percent completed and the remaining work will be over within one or two month, Hek said adding that revenue worth Rs 25-30 lakh will be recovered from the tenants of the commercial block in a month.
According to the memorandum of understanding (MoU) signed between the state government and the Asian Housing Construction Limited, the project which was launched in July 2005 was to have been completed in two years.
