Acropolis owes UT R 30 cr as conversion charges | chandigarh | Hindustan Times
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Acropolis owes UT R 30 cr as conversion charges

chandigarh Updated: May 09, 2013 00:56 IST
Vinod Kumar
Vinod Kumar
Hindustan Times
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Acropolis, a venture of Mirage Infra Private Limited, owes around Rs 30 crore as conversion charges to the UT administration. Vijay Singla, nephew of union railway minister Pawan Kumar Bansal, is director of the firm.

Singla is in the Central Bureau of Investigation (CBI) net on the charge of taking bribe from a railway official, whom he (Singla) allegedly had assured plum posting in the railway board.

According to sources, Mirage Infra Private Limited had acquired plot number 68, measuring around 32 kanal, in Industrial Area, Phase 1, from Modern Bread in 2007 and applied for conversion under the conversion policy of the UT administration in 2008. The administration charged Rs 29,713 per square yard as conversion fee from the company of which 10% was paid as earnest money.

The firm made the first payment of around Rs 5 crore and defaulted on the remaining payment of around Rs 30 crore. After the firm failed to make the remaining payment despite repeated reminders and notices, the plot was resumed by the UT estate office in September 2012.

During a hearing of the case, the management of the firm had sought more time from the authorities for making the payment on ground of shortage of funds due to slump in the market.

As per the laid down norms, the site can be released if the firm clears all the outstanding dues.

Meanwhile, the UT municipal corporation has also disconnected the water connection of the firm due to nonpayment of water bill amounting to Rs 43 lakh.

What conversion entails?

The administration had introduced 'Chandigarh conversion of land use of industrial sites into commercial activity/services in industrial area Phases 1 and 2' scheme vide notification issued on September 19, 2005.

The scheme was initially floated for two years, but was extended by another six months. The policy was withdrawn on March 18, 2008.

After the conversion policy pertaining to commercial property in the industrial area was implemented, the area was rechristened 'industrial and business park'. Many sick industrial units gave way to malls and hotels.

The administration had set up Phases I and II during 1970's on 147 acres. Plots were originally allotted for setting up manufacturing units, but over the years a large number of allottees have used the land for commercial purposes other than manufacturing.