Settling down the 10-year controversy over Prideasia, a residential project of Parsavnath in IT Park (near the Lalit Hotel), Chandigarh, the arbitrator appointed by the apex court has directed the Chandigarh Housing Board (CHB) to refund Rs 567 crore to the builder. With Parsavnath having deposited only Rs 516 crore, the CHB will have to return Rs 51 lakh extra.
Retired Supreme Court judge, Justice RV Raveendran, in his 300-page judgment has asked CHB to refund the said amount and asked the builder to return the 123 acres of land in its possession within a month to the housing board.
Speaking to HT, CHB secretary Mandeep Kaur said, “We feel that we have won the case as we have to return just Rs 51 lakhs extra to the builder after six years as they have already deposited Rs 516 crore with us. The builder will be giving us possession of 123 acres of land within a month. We will also give bank guarantee of Rs 75 crore to the builder, and they will give us compensation of Rs 20 crore. The arbitrator has also declared our defaulters’ notices to the builder valid.”
The arbitrator has directed the CHB to return the deposit after the judgment or 18% interest will be levied on the CHB. Of the total land cost of Rs 821 crore, the builder had deposited only Rs 517 crore.
In October 2006, the Chandigarh Housing Board decided to develop the residential/commercial and other related infrastructure with Parsavanth Developers Limited at Rajiv Gandhi Chandigarh Technology Park. It was decided that the amount deposited by allottees was to be shared in the ratio of 70:30 between the developer and CHB. Thereafter, the CHB transferred 123 acres as freehold to the builder, but the project could not be materialised due to various issues, and applicants started asking for their money back, following which the builder approached the court.
CHB suffers Rs 3.5-cr loss in form of refunds to allottees
The CHB has also suffered a loss of Rs 3.5 crore as interest to allottees of the houses in a project after it could not be finished in the mandated 36 months after its launch in October 2006. This irregularity is part of an audit report of the Indian audit and accounts department, Chandigarh.
Of the amount taken from the allottees in the IT project case, the CHB had kept 30% and had to return this with interest, after the state consumer redressal commission ordered refund of the money. The CHB ended up having to pay an additional Rs 3.5 crore in interest (at the rate of 9%) from June 3, 2013 to January 1, 2014.