Patiala: Loss of 5,000 jobs at Omaxe City project | punjab$patiala | Hindustan Times
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Patiala: Loss of 5,000 jobs at Omaxe City project

In its latest letter dated November 3, Delhi-based realty firm Omaxe Ltd has sought two more years from Punjab government to fulfil its pending liability of generating 5,000 IT and bio-tech park in its much-touted Omaxe City Project on Patiala-Sirhind road.

punjab Updated: Nov 06, 2015 00:09 IST
Vivek Gupta
Patiala
Even as Omaxe minted huge profit by selling residential and commercial plots as part of the project, the company has failed to generate even a single job for city residents.(HT File Photo)

In its latest letter dated November 3, Delhi-based realty firm Omaxe Ltd has sought two more years from Punjab government to fulfil its pending liability of generating 5,000 IT and bio-tech park in its much-touted Omaxe City Project on Patiala-Sirhind road.

The company filed its response after the Punjab government through its six member panel recently asked the private builder to return 60 acres of prime commercial land that was handed over to the company in 2006 to create 5,000 jobs in Information Technology (IT) and biotechnology sectors.

The creation of jobs for the city’s youth was an important obligation that the company had to fulfil as part of 331-acre integrated township project that came in to existence through a joint agreement between Omaxe and Patiala Development Authority (PDA) in November 2006. The company was given two-three years to develop the IT and bio-tech city.

Even as Omaxe minted huge profit by selling residential and commercial plots as part of the project, the company has failed to generate even a single job for city residents so far.

HT has learnt that the government is not keen to accept this recommendation of the company.

It will, however, take a final call after Patiala Development Authority (PDA) chief administrator holds a meeting of the six-member committee looking into the matter.

Conforming that company’s letter had been received, he added company’s letter has been forwarded to other members of the committee. “We will hold a meeting within 10-15 days to discuss the issue and then table our recommendations to the state government. The company’s officials will also be invited.”

Other members in the panel include PUDA chief administrator Manvesh Sidhu; Gurneet Tej, Special Secretary Finance, Mohammad Tayyab, additional secretary, housing urban development and Ranjit Singh, joint legal remembrance.

Chief secretary Sarvesh Kaushal had formed the panel in August this year to negotiate with the company.

Timeline of flawed project

• 2003-2004: Patiala Development Authority (PDA) acquires 331 acres on the Patiala-Sirhind road

• November 2006: A joint development agreement signed between the PDA and Omaxe Limited to develop the project on profit-sharing basis (Omaxe 85%, PDA 15%) with the condition that the company would 5,000 jobs in the IT and biotech sector

• 2010: The PDA issues a default notice to the company. Omaxe expressed its inability to develop the ‘IT and bio-tech city’ and proposed another plan

• June 2011: Termination notice for the project issued to Omaxe

• July 2011: People whose land was acquired for the IT City project moved the Punjab and Haryana high court against the acquisition following which the court ordered that status quo be maintained

• September 2013: The high court dismisses the petition as withdrawn

• 2014-2015: The PDA and the state government hold several inconclusive internal meetings on the issue

• August-September, 2015: Punjab chief secretary forms a six-member committee to negotiate with the company. The panel, in its last meeting, in September this year asked the company to return 60 acres

• November 3: Company seeks two more years to set up the IT and bio tech city, committee to submit its recommendations to state government after its meeting later this month