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HUDA To Refund 400 cr. To Kokapet Bidders |
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HUDA has decided to refund Rs. 400 crores paid by bidders for the Golden Mile project at Kokapet of Rajendranagar mandal with the title deed dispute still pending in the High Court.
The Kokapet auctions taken up in last July by HUDA drew wide attention as several bidders from within and outside the State vied with one another to bag plots in the strategically located Golden Mile.
The fiercely competitive bidding for 15 plots in the range of two to six acres totalling 70 acres resulted in HUDA netting Rs.702 crores.
The plots were bid for Rs.10 crores per acre on an average while the highest price was Rs.14.5 crores per acre.
Even as bidders paid Rs.400 crores as per the stipulated payment schedule, the court ordered a stay following a writ petition disputing the title deed of the land.
The petitioner challenged that the Golden Mile area was part of land purchased by their ancestors during Nizam's time.
However, HUDA exuded confidence that the case would be solved soon as the land, as recorded in revenue records, belonged to the Government and waited for the court's clearance to launch infrastructure development work. But weeks turned into months with no progress in the case.
In the meantime, bidders became restive and urged HUDA to refund the money.
They even made a representation to Chief Minister Y.S. Rajasekhara Reddy who promised that the money would be refunded if there was no verdict by February-end.
Hence, HUDA decided to refund the money in April in one lot to bidders.
However, it would take an undertaking and a bank guarantee for an amount equivalent to earnest money deposit (EMD) from bidders that they would rejoin the project at the old terms and conditions as and when the case was solved, thus ruling out a repeat auction at a later date, HUDA Vice-Chairman Jayesh Ranjan told The Hindu on Friday.
As per the conditions, HUDA would spend Rs.50 crores on infrastructure development in the Golden Mile project area where commercial, hotel and residential projects were proposed.
SOURCES:
The Hindu
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