MLAs got more than what the market bargained for

The Tata Housing Development Company (THDC) is giving a bigger bang for buck to the MLAs with a share in Punjab MLA Society land in Kansal village.

The housing corporation is offering Rs 106 crore—four times the market price—for the land which was priced at Rs 1.5 crore when it was initially acquired by the society. While the market dictates Rs 10,000 for a piece of a square yard in the Kansal village, the THDC has agreed to pay Rs 45,000 per square yard to the society. The exhorbitant price being paid to the Society parallels the prices in Chandigarh Properties—where real estate prices are amongst the highest in the country, with around Rs 50,000 for a square yard.

The prices being paid to the members of the MLA Society is even higher than the land prices in the two developed satellite towns of Mohali and Panchkula, where the prices stand at around Rs 30,000 per square yard. This is all the more striking because the Kansal village land can not be used for commercial activities. Interestingly, the MLAs purchased the land when it was meant for agricultural purposes and had not even been given the NAC status. The legislators have not only got a better deal than what the market dictates, but the society too has gained at the expense of the government.

According to sources, the land was registered in the name of the Society after a payment of only Rs 1.5 crore for the 22 acres. This is more than 100 times the total amount the Punjab MPs and MLAs are getting from the THDC. The THDC is paying a whopping Rs 106 crore for 22 acres of the Punjab MLA Society. The MLAs and MPs are now assured of Rs 82.5 lakh each and a four-bedroom flat in Kansal village on an investment of Rs 6.5 to 13 lakh each.

An officer said the deal implies a tacit understanding between the legilsators and THDC regarding approvals from different government agencies.

Source://expressindia.com

VB likely to probe mega projects

Sticking to its pre-election intentions of reviewing all “controversial” projects cleared by the Amarinder regime, the SAD-BJP government is likely to place mega projects, including Ludhiana City Centre, Janta Land Developers, Silicon Constructions Limited, Unitech and Ansals among the 317, under scrutiny of the Vigilance Bureau.

Sources in the government said to start with, the Vigilance will first probe the Ludhiana City Centre scam of Rs 2,100 crore. Awarded to Today Homes, the centre was under a cloud when it was alleged that Today Homes sold off the commercial property and took undue favours. The previous government did order a Vigilance probe into it, but the report was “wishy-washy”.

In the case of Janta Land Developers project in Mohali, a scam of Rs 2,000 crore was alleged by the Akalis. It was further alleged that the empowered committee headed by the then CM, Capt Amarinder Singh, cleared the project and allowed change of land use from green space to a colony. The green space was earmarked for a park, but was given to Janta Developers, a company run by former Mohali Municipal Council president Kulwant Singh.

“Also, Silicon Construction Limited of Kewal Dhillon, now a Congress MLA, was cleared by the empowered committee. This company was set up with a bare minimum capital of Rs 1 lakh and another Rs 1 lakh as paid capital. This company was given permission to construct a shopping complex-cum-mall with an proposed investment of Rs 110 crore. Also, Kewal has been given permission to set up 11 multiplexes in Amritsar, Jalandhar, Ludhiana, Patiala, Sangrur, Barnala, Ropar, Bathinda, Mohali and Zirakpur, besides six hotels. It is alleged that concessions worth Rs 3,258 crore were given to him for these mega projects, which are likely to be probed now,’’ said an official.

Sukbir Badal had raised eyebrows in the run-up to the elections over these projects.

The projects which might come under the VB scanner is a milk project of Dumex India Limited at Jagraon with a proposed investment of Rs 175 crore; Abhishek Industries of Rajesh Gupta of Trident with an investment of Rs 2,000 crore as they proposed a textile park, textile unit and so on; housing and multiplex projects of Ansals; a housing project worth Rs 400 crore by Unitech in Mohali; Clarion Properties housing project worth Rs 125 crore in Amritsar and Eldeco Infrastructure housing projects in Jalandhar, Rajpura and Ludhiana worth about Rs 400 crore.

Others include Malhotra Land Developers, an industrial project of Amartex Industries and Bhankarput Distilleries in Ferozepur of Suraj Gupta.

Resource://expressindia.com

DLF, Reliance eye Pinjore for residential projects

The real estate market in Pinjore area of Panchkula district is all set to get a boost with big players zeroing on the area for developing their residential projects. According to sources, DLF and Reliance are the major players eyeing this area. The deals, still in the negotiation stage, are all set to shift the focus of real estate market in the district to this Pinjore-Kalka Complex. DLF is said to be in negotiations with the landowners in Bhagwanpur and Viratnagar area for buying land, and Reliance is eyeing the Surajpur area for investments, said the sources .

At present, the Amravati Enclave is the sole private player in the area, which falls in Sector 2 of the Pinjore-Kalka Complex of Haryana Urban Development Authority.

Nand Lal, a property consultant based in the area, said “the land in this area is priced at approximately Rs 1 crore to Rs 1.5 crore. Both the real estate players are looking for more than 100 acres for investing, and some deals have already been made in Bhagwanpur and Viratnagar areas.”

The developers are eyeing this area keeping in mind the increased connectivity between the area and Chandigarh Properties, as the four-laning of the NH-22 proceeds. “Also, the residential areas in this area can attract professionals from Baddi area and IT professionals from the proposed IT Park in Panchkula,” said Rajan Thakur, a local investor.

The prices in this area are comparatively lower than that of neighbouring Zirakpur, though both are on the national highways. “In Zirakpur, in some areas an acre is available for up to Rs 5 crores. This, because the land here is hilly, uneven and criss-crossed by seasonal rivulets,” said the investor.

It is interesting to note that local residents of the area are not allowed construction of houses outside Lal Dora, due to imposition of Haryana Urban Development and Regulation Act, and also due to New Punjab Capital Periphery Control Act.

Source://expressindia.com

Pro-farm budget not anti-industry

FARMERS selling their land for SEZs, malls and real estate and using the bumper harvest for buying a fleet of cars or foreign travel is bad news for the economy as well as the industry, said Krishan Kalra, the new secretary general of the Punjab, Haryana and Delhi Chambers of Commerce and Industry (PHDCCI) in Chandigarh today.

Keeping this and country’s low per acre productivity in mind, the present budget’s focus on agriculture should not be seen as regressive, he said.

Describing the 2007-08 budget as a mixed bag, Kalra said Finance Minister P. Chidambaram had many political and economic compulsions to take care of and tried his best to walk the tightrope. “Industry is like an oak tree and the smaller ones need greater care is what our Finance Minister feels and I do not totally disagree with him,” he added.

While the industry cannot cheer for the hike in Dividend Distribution Tax (DDT), extension of Minimum Alternative Tax (MAT), application of fringe benefit tax to ESOPs (Employees Stock Option Plan) and the additional one per cent education cess, no hike in corporate tax, capital gains tax and sales tax should hearten us, he said. Besides, measures such as increased outlay on infrastructure, cut in peak customs duty will pump up industrial growth, he added.

The PHDCCI has also welcomed the focus on strengthening the small scale industry. Increase in threshold limit for service tax, raising of excise duty exemption limit and removal of surcharge on income tax on taxable income of Rs 1 crore or less will boost the small scale industries, he said.

However, what is more unsettling for the PHDCCI is the proposed hike in minimum wages by 41 per cent in Haryana by Chief Minister Bhupinder Singh Hooda. Terming the hike as impractical, Kalra said wages are linked to the Consumer Price Index (CPI) and should be competitive. “The present minimum wages compare favourably with those in the neighbouring states of Punjab, Uttrakhand, Himachal and UP and the proposed hike will also deter those interested in investing in the state,” he said.

Resource://expressindia.com