DLF turns heat on Idco, labels notice illegal

Unfazed by the notice of state land acquisition agency, Odisha Industrial Infrastructure Development Corporation (Idco) to resume land, real estate major DLF Ltd has hit back, terming the missive 'wrongful and illegal'.

"We state that Section 34 of Odisha Industrial Infrastructure Development Corporation (OIIDC) Act 1981 is not applicable to the present case and accordingly, invocation of the said provision by you is illegal and without jurisdiction", DLF replied to the notice.

Idco in May this year, had warned of stringent action against DLF for keeping a large chunk of land idle meant for developing its Rs 1000-crore Infopark project. Of the 54 acres allotted to DLF for the project, only seven acres have been utilised till date.

"We state and submit that OIIDC Act 1981, particularly Section 34 thereof is not applicable and cannot be resorted to. We deny that this land or any portion thereof can or should be resumed", the real estate major said.

The company has also termed the issue of various public notices in relation to the said plot as wrongful and illegal.

"The same (notice) is detrimental to the project and a large number of well known companies who have acquired office spaces have expressed serious concern about the future of the project on becoming aware of such notices. The same has eroded the confidence of such persons who are about to fit out their offices. Such notices are also detrimental to the interests of the company effecting the implementation of the project and thereby significantly reducing the employment generation of the project", DLF pointed out.

Idco's chairman cum managing director Vishal Dev could not be reached for his comments.

Stating the project requires phased development, DLF pointed out that first high rise 12-storied building with over 550,000 sq ft office space is virtually complete. It had entered into agreement for nearly 300 units with reputed companies and handing over of space is under commencement. The private developer has flayed Idco for its failure in the latter's commitment to facilitate all approvals which has led to delayed construction. It also blamed the state run agency for not providing marketing support as provided in the lease cum development agreement signed between Idco and DLF.

"In accordance with the agreement, Idco was to provide us marketing supporting on a best effort basis including participating in the marketing road shows. Despite repeated reminders, Idco has failed to do so though aware of the importance of such support which would be necessary to attract companies to set up IT offices in Odisha", the letter stated. The company has refuted the allegations of Idco that it has no interest in developing the plot.

"We do not agree that we have no interest in developing the plot or have any intention to grab any land. We deny that any portion of the area can be utilised for any other purpose", DLF clarified.

The DLF Infopark project which was to be developed in three phases, was to consist of an IT block, a luxury hotel, a retail chain, service apartments and recreational facilities with a total built-up space of about 5.5 million sq ft.

The Infopark project was to generate direct and indirect employment opportunities for over 40,000 people in sectors like IT and ITes (IT enabled services), retail and hospitality.