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Short of funds, HSVP seeks six months to pay ₹35 crore for land
Gurugram The Haryana Shahari Vikas Pradhikaran (HSVP), one of the biggest landowners in the state, is facing an acute financial crunch, to such an extent that the
Gurugram The Haryana Shahari Vikas Pradhikaran (HSVP), one of the biggest landowners in the state, is facing an acute financial crunch, to such an extent that the authority had to seek an additional six months to pay ₹35 crore for acquisition of land from three parties.
An affidavit filed by the chief administrator, HSVP, on January 6 in the court of additional session and district judge, Gurugram, revealed that the authority has taken loans of ₹14,250 crore from banks. To service the interest cost alone, the authority has to make a payment of ₹100 crore monthly, the authority submitted.
Owing to the situation, the authority said that it was difficult to arrange a loan for making payments in a short time and, as such, sought six months’ time from the court to make the payment in the case.
Officials said the matter pertains to three companies, including two real estate developers, who had filed a petition in the court, asking HSVP to pay compensation for acquisition of their land, required for the construction of Southern Peripheral Road (SPR).
An amount of ₹35 crore has to be paid by the authority to these companies for the land acquired. On December 4, 2019, the court had directed the chief administrator of HSVP to appear before the court in this matter.
Consequently, the authority submitted an affidavit on January 6, stating that it has taken large loans from banks for payment of compensation, which makes it difficult to get another loan within a short time. The authority submitted that there are a number of executions pending in various courts, regarding payment of compensation to landowners in land acquisition cases.
Due to shortage of funds, the HSVP is paying land compensation after obtaining loans from banks. The procedure for obtaining loans is lengthy and banks issue loans on the basis of state guarantees. In view of this, the authority sought six months’ time for making payment in compliance with the court order, stated the affidavit.
The submission by the chief administrator also corroborates the information shared by the authority, in response to an RTI petition in March 2019, in which it was stated that the authority had taken loans amounting to ₹13,890 crore from banks and the department of town and country planning. The total outstanding amount of the authority came to ₹19,611 crore, the RTI filed by Aseem Takyar revealed.
HSVP officials, meanwhile, admitted that the authority is facing a funds crunch, but efforts are being made to improve the financial condition by monetizing the large land banks in the city and across the state. They said that the payments to landowners, in enhancements ordered by the courts, and the steep cost of acquiring land for new projects are compounding the issue.
Jitender Yadav, HSVP administrator, said that efforts are being made to improve the financial condition of the authority. “We are conducting a survey to assess the land with HSVP in Gurugram and Rewari, and a land bank is being created. All encroachments would be removed and the property monetized to improve finances,” he said.
