How far has this proposed development by Unitech progressed? Not a brick has been laid in the plot since then. The only development ever since was Unitech signing an agreement with BDA and paying Rs 52 cr as earnest money and security.

As everyone has been wondering why no progress has been made by Unitech so far, the November 12 advertisements by BDA inviting developers for a mega commercial and residential project on the same 10.74 acres has raised many an eyebrow. In fact, it has floated two advertisements __ one for the 10.74 acres land and another for 2.68 acres in Chandrasekharpur.

While the reserve price fixed for the bigger plot in the advertisement is Rs 211 cr, Rs 1 cr more than what Unitech had quoted, the reserve price for the smaller one is Rs 52.75 cr, Rs 75 lakh more than what Unitech has already paid to BDA.

What is happening? How can BDA invite fresh tenders for something which has already been settled? Why bids have been invited for 2.68 acres from within the 10.74 acres separately? Does this mean that the tie-up with Unitech is scrapped? If yes, have the terms and conditions of the agreement been adhered to? Information available with this paper indicates that the agreement with Unitech is not yet closed and the fresh bid is to bail out the Delhi-based real estate firm. Having offered a mind-boggling Rs 210 cr to BDA, Unitech realised its mistake very early and has been on the backfoot ever since.

As it was unable to undertake the project in view of the global recession and inclement market conditions, Unitech reportedly requested BDA to allow it to withdraw from the project and allocate land worth Rs 52 crore in proportion to the rate it had offered at Rs 210 cr which works out to 2.68 acres from the original plot of 10.74 acres. This request was approved by the BDA and explains why a separate advertisement was floated to develop the 2.68 acres. Does this mean the BDA is giving Unitech an opportunity to redeem its Rs 52 cr with a penalty of at least Rs 75 lakh? The question here is instead of going tough on Unitech for violating the agreement terms, why a circuitous route is being adopted to offer a bailout package? Not complying with any of the 11 parameters as outlined in the agreement would amount to default and make the company lose its earnest money and security. So, why is the BDA, which could help the State coffers with Rs 52 crore, working out a method so that Unitech does not lose the earnest and security money? Moreover, as per tender guidelines, if the highest bidder pulled out, the project must go to the next highest bidder. It now remains to be seen whether any developer participating in the fresh bids will do another Unitech.