The Hindu 18.03.2016
VUDA cancels agreement on commercial complex
Vaibhav Sky Scapes entered into lease on February 16, 2008. The construction was to be completed in 18 months
VUDA has cancelled all agreements for development of a
commercial complex in 6,540 square yards of vacant land and 550 sq yards
of underground area for cellar parking.
Orders cancelling the agreement were issued by Vice-Chairman T. Baburao Naidu on Thursday, it was reliably learnt.
PPP mode
Vaibhav
Sky Scapes entered into lease agreement with VUDA under PPP mode for
the commercial complex on the land adjacent to VUDA building on February
16, 2008.
The lease agreement is for 33 years on
lease rent at Rs.70.9 lakh at 5 per cent increase per annum with annual
development premium at Rs.1.06 crore per year at 5 pesr cent increase
per annum and refundable project development fee at Rs.2 lakh per year.
As per the agreement, the construction of the project was to be completed in 18 months.
Environmental clearance
VUDA
issued orders of approval for the building plan and one of the
conditions is obtaining approval from the State-level Environment Impact
Assessment Authority. The environmental clearance valid for five years
was obtained in September 2011 and revised supplement agreement for
lease agreement and development and management agreement was entered
into.
With the environmental agreement set to expire
on September 14, 2016, completion of the project by then was highly
improbable, the VUDA Vice-Chairman is learnt to have observed in his
order.
After a meeting with Additional Vice-Chairman
of VUDA in February, Vaibhav Sky Scapes informed VUDA that it had
identified a new investor, financial due diligence was completed and a
detailed plan of action would be submitted to VUDA, it was learnt.
With
eight years elapsing and the environmental clearance set to lapse in
September, 2016, VUDA can’t venture to wait any further, Mr. Baburao
Naidu said also citing lease rent outstanding and the expiry of the bank
guarantee and issued orders cancelling all agreements entered into with
the firm.
Vaibhav
Sky Scapes entered into lease agreement with VUDA under PPP mode for
the commercial complex on the land adjacent to VUDA building on February
16, 2008
