The Times of India 09.03.2013
Chennai Metropolitan Development Authority nod for housing projects on industrial plot
CHENNAI: The Chennai Metropolitan Development Authority (CMDA) has agreed to allow residential projects on the trouble-gripped 10-acre plot at the Guindy Industrial Estate. The plot owned by Hindustan
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."
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."
