The Times of India 09.03.2013
Chennai Metropolitan Development Authority nod for housing projects on industrial plot
Teleprinters Limited has been on the block for the past five years, but
failed to attract any buyer because of its classification as industrial
land in government records.
With residential plots
in the central business district fetching astronomical prices, if the
land finally goes to a property developer, it may set a new benchmark in
property price in the Guindy region. As industrial activities are fast
becoming untenable in the city and developing new IT parks no longer a
financially viable proposition, HTL approached the CMDA seeking
clarification as to whether residential projects can be promoted on the
site.
A high-level committee of the CMDA, which looked into the
issue recently, has decided to permit residential activities on the
property. A senior CMDA official said: “Under normal circumstance, we do
not permit conversion of industrial land to residential one. But in the
case of HTL, the state government, in the 1960’s, had permitted the
company to construct residential quarters for its staff members on a
portion of the land. Against such a backdrop, we have decided to permit
residential development on the entire land.”
The property has
been in the limelight for wrong reasons. In a closely contested auction,
Bangalore-based RMZ Corporation decided to buy out the HTL property for
297 crore in 2007. The deal got stuck because the state government
objected to it. Later, various courts, including the Supreme Court
upheld the company’s right to sell the land. Meanwhile, the State Bank
of India took possession of the property in 2009. The bank is now
looking at liquidating its debt exposure.
The land is situated
off Anna Salai and fits all development parameters prescribed by the
CMDA. “Going by the price (12,000 per sq ft) at which a builder launched
a new apartment project in Guindy recently, it is anybody’s guess as to
how much the HTL property will fetch,” said a builder. “If residential
development is possible, the property may fetch more than 600 crore,”
said another builder.
The CMDA, meanwhile, is tightening screws
on residential development in all industrial belts, including Old
Mahabalipuram Road, also known as IT Highway.
An official said,
“A distance of 500 metres on both sides of the OMR is earmarked for IT
purpose. We have given permission for many residential projects in the
IT zone on OMR in the past. But hereafter, residential projects will not
be encouraged in the IT belt.”