Duncan May Dump Ap Real Estate Plan

The London-based Duncan Macneill's infrastructure projects in Andhra Pradesh, envisaging investment of over Rs 1,000 crore, has failed to attract a further Rs 10,000 crore by way of fresh capital induction.

The company has now gone to court against the state government, and may even prefer to walk out of the project if the state returns Rs 21 crore paid by the company towards cost of land and adequate compensation for its three year wait in vain so far.

Three subsidiaries were formed at Hyderabad and Visakhapatnam by the London-based principals, and employees in these offices have been sitting idle for quite some time.

 

The litigation was sparked off by the state government's notice to the company to show cause why the prime lands assigned to it should not be taken back as no work has been done on them in the past three years. The company had been given 15 days time to file their reply. Duncan Macneill promptly obtained a stay against the government's order from the High Court, and thats where the matter stands right now.

The properties in question, now in possession of the company, are a 10 acre prime land on the Hussainsagar bank in the Buddha Poornima area where twin towers of 26 floors each were to be constructed as a world trade and business enclave. The company is also in possession of 87 acres in Madhapur on the outskirts of the city where an integrated residential complex for those manning the world trade centre was to be constructed. The current market price of the 10 acres at Hussainsagar alone is put at over Rs 42 crore.

Duncan Macneill was also to obtain 300 acres of land on the national highway between Visakhapatnam and Anakapalle for an international standard industrial park with ready infrastructure, and a 30 acre plot on the sea beach for a holiday resort.

However, they have not so far been handed over to the company as much of the land is in private hands. Duncan Macneill itself was not keen on the 30 acre beach land as it falls within the 500 metres of high tide line where no construction is allowed under government regulations.

The companys ambitious scheme was originally approved by the earlier Congress government. The foundation for the world trade centre on the Hussainsagar foreshore was laid by the then chief minister, K Vijayabhaskara Reddy on October 6, 1994 just a month before his party was voted out of power.

The company was keen to proceed with the project, and no less than the groups chairman, Earl of Inchcape, flew down to Hyderabad for the foundation stone laying ceremony. He had then promised to complete the projects, both at Hyderabad and Visakhapatnam, in less than three years.

When N T Rama Rao became the chief minister after the 1994 assembly elections, he had publicly announced that the project would be "reviewed". However, matters were sorted out when Rama Rao visited London in early 1995, and had a long talk with the Earl of Inchcape in the course of his attempts to attract more foreign investments in Andhra Pradesh.

The death of Rama Rao gave a new twist to the story. He was cremated at the Buddha Poornima grounds, and the new government decided on a memorial for Rama Rao in the area which necessitated shifting of the world trade centre.