The controversy over a patch of land is likely to delay the country's first private-funded Rs 1,000-crore Rapid MetroRail Gurgaon (RMG) project by about six months. This means, the construction company, RMG Limited, will have to pay Haryana Urban Development Authority (Huda) Rs 2.5 lakh per day as penalty for delay.
According to officials of the RMG, as per the pact between Huda and the firm, the company is bound by a "penalty clause".
As per the detailed project report, the work on the 6.1-km metro rail should be completed in January 2013. But fearing delay due to hitches in the transfer of about one acre of land from the National Media Centre (NMC) to Huda, the company had moved the Punjab and Haryana High Court in December last, seeking an order asking the Media Centre to pay the penalty in case the project gets delayed.
In July 22 this year, a contingent of armed police personnel, along with Huda demolition squad, pulled down a portion of boundary wall of Media Centre to make way for the Rapid MetroRail project.
The move came after the Media Centre refused to transfer the land to Huda. The Media Centre claims it is its land.
RMG officials admitted that the project would be delayed by about six months following the land transfer row and they would have to "pay a penalty of Rs 2.5 lakh a day for the delay as per the terms and conditions of the agreement."
The land in question is 326-m long and 50-m wide. It comes within the premises of the National Media Centre complex. As per the agreement signed with the company, Huda was legally bound to provide right of way to the Rapid Metro Rail of about 2.5 m for erecting elevated tracks.
On the other hand, the NMC residents are planning to intensify their agitation to reclaim the green belt from Huda and the project may further get delayed if they succeed in stalling the takeover.