New Delhi-based realtor Parsvnath Developers Ltd’s Pride Asia project in Chandigarh is stuck in arbitration with the Chandigarh Housing Board.
The project, which was expected to generate revenues of Rs4,500 crore, allegedly did not receive a portion of the 123 acre land committed by the Chandigarh Housing Board (CHB) for the development of residential and commercial property. According to sources close to the development, Parsvnath has paid Rs516 crore to the housing board between 2006 and 2008 as per the schedule in their agreement. The company has also invested close to `300 crore on publicity and building of sample flats.
At Rs 7,150 per square feet, the cost of flats ranged around Rs50 lakh to Rs2 crore. The project also offered penthouses and villas ranging between Rs2 crore and Rs6 crore. However, construction could not be taken up due to arbitration even as the buyer-seller agreements were signed in 2008.
Pride Asia went into arbitration in 2009 as the amount that Parsvnath had put in an escrow account was frozen by the CHB. Additionally, the CHB also imposed penalty on the developer for allegedly violating the terms of the agreement. Till date, 17 arbitration hearings have been conducted.
The company also faced late payment issues in its Parsvnath Planet project in Lucknow. However, it contends that this will not affect the completion of the project. A company source said the super structure stands at the site and the project will be completed by the end of this year.
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