Realty prices may go up, warn builders | india | Hindustan Times
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Realty prices may go up, warn builders

india Updated: Jul 18, 2012 01:03 IST
Sanjeev K Ahuja
Sanjeev K Ahuja
Hindustan Times

The Punjab and Haryana high court order has given sleepless nights to private developers in Gurgaon. They have indicated that the realty prices could go up if they were forced to source water from other towns such as Noida, as it will send costs soaring.

The developers also blamed the Haryana government for its failure to provide adequate canal water despite collecting thousands of crores of rupees in the form of external development charges (EDC) and infrastructure development charges (IDC) from them.

Seventy percent of the water requirement is met by ground water in Gurgaon district as Huda has failed to bring adequate canal water to Gurgaon, especially the new Gurgaon localities such as DLF City, Sushant Lok and Palam Vihar, forcing the developers to extract more ground water.

Nivedita RS Rathee, former president of DLF Qutub Enclave RWA — who had petitioned the high court — said Huda's affidavit, claiming it was providing 1.8 MGD (million gallon litres per day) of water to the five phases of DLF city against the requirement of 1.2 MGD, was incorrect.

"DLF cyber city in DLF Phase 3 alone consumes 5.2 MGD. Ninety per cent of the water demand in DLF City is met by ground water as Huda has failed to supply adequate water there," Rathee added.

"If the developers are compelled to buy water from private suppliers from other places, the cost of construction would go up. It is government's responsibility to provide water for all projects," said Navin Raheja, CMD of the Raheja group.

"Since only 10-15% water is being used for construction activity, it will not be correct to blame depletion of ground water on the development works. The government should tell the court that developers are using water only through permitted means," said Gautam Bhalla, director, Vatika group.