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Rs575 crore lawsuit over residential project land

Rs575 crore lawsuit over residential project land
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First Published: Fri, Jun 24 2011. 04 03 PM IST
Updated: Fri, Jun 24 2011. 04 03 PM IST
New Delhi: Bangalore-based firm, Pranav Electronics Pvt. Ltd. has filed a Rs 575 crore lawsuit in the civil court against Panyam Cements and Minerals Industries Ltd that owns the 22-acre land on Hosur Road in Bangalore, for which the landowner had signed a joint development agreement with Kolkata-based real estate firm Salarpuria Properties Pvt. Ltd.
The company in its petition has alleged that Panyam Cements and the developer firm have not delivered promised built-up area as per the agreement. The residential project, Salarpuria Greenage, is being developed on a 22-acre land located on Hosur Road in Bangalore. It promises to offer more than 1,600 residential units. Launched in year 2008 the first phase is to be delivered in by end of 2011. However, the completion of the entire project will take next three years.
“Pranav Electronics had booked 1,000 flats in the project. However, the company is selling units to individual homebuyers without giving apartments to us. Also, the developer was not able to deliver the booked units as promised in 2008,” said senior counsel for the firm, Navkesh Batra in a telephonic interaction.
He added, ”Our primary demand is for compensation. Either they pay us Rs 575 crore as compensation or they give us possession of 15-acre of land within the project for which we have already paid a consideration of Rs 100 crore to Panyam Cements. As per the market value, we estimate that the cost of 1,000 apartments or 15-acre land stands to be around Rs 575 crore.” A senior ranking official at Salarpuria Properties, close to the development said on condition of anonymity, ”We have joint development agreement with Panyam Cements. We have nothing to do with the case. The main allegation is against the Panyam Cements, with whom we have signed a development agreement. Because of the agreement, we are party to the case. However, we have informed our buyers about the ongoing case. It is not our concern, if Panyam Cements had an agreement to sell its share to someone else.” The hearing of the case is on Saturday.
When contacted, managing director, Bijay Agarwal of Salarpuria Properties Pvt. Ltd. refused to comment on the matter.
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First Published: Fri, Jun 24 2011. 04 03 PM IST