Unitech seeks BDA approval to rejig its project

Unable to set up its Rs 211-crore residential cum commercial complex in the city within the stipulated timeframe, the realty major Unitech has approached the Bhubaneswar Development Authority (BDA) with a proposal to rejig the project.

The company was to develop the project on 11 acres of land in one of the prime locations of the city, but now it wants to develop only one-fourth of the total land allotted to it.

Unitech, meanwhile, has sought BDA’s approval in this regard and the latter is examining the proposal.

“Unitech now wants to develop only one-fourth of the total land area of 11 acres for the residential cum commercial complex. The real estate player has so far paid about Rs 54 crore for the 11-acre plot”, said DK Singh, vice-chairman, BDA.

Sources familiar with the development had earlier indicated that Unitech had sought an extension of two years for the project from the BDA as the cash position of the real estate major was not comfortable in the aftermath of the economic recession.

“After paying the initial amount to BDA for the 11-acre plot in March 2008, Unitech had sought a period of three months for paying the balance amount as a lump sum. However, the company had defaulted in paying the requisite amount as its cash position was not favourable", added sources. Unitech’s alleged delay in payment of the balance amount to BDA had given rise to speculation that the realty player was considering a pull-out of the project. In the event of its withdrawal from the project, Unitech stands to forfeit Rs 54 crore which it had paid to the BDA. As per the terms of agreement between Unitech and BDA, the real estate player was to develop the 11-acre plot by the end of 2010. In April 2007, Unitech had emerged as the highest bidder for the 11-acre plot auctioned by the BDA. Unitech had agreed for a price of Rs 20 crore per acre and DLF which had offered a bidding price of Rs 11 per acre was the second highest bidder.