AP cancels land allotted to L&T Vision Ventures in Vizag

Andhra Pradesh Government has accorded permission to Visakhapatnam Metropolitan Region Development Authority (VMRDA) to cancel 31 acres and 30 cents of prime land allotted in the city to a private firm at Kommadi in 2008 and reimburse the amount with simple interest.

As part of a drive to sell away bulk sites to take up massive housing and infrastructure projects, the land was sold at Rs.1.53 crore per acre to L&T Vision Ventures Ltd.

The government vide GO Ms. No. 4 issued by the Department of Municipal Administration and Urban Development on January 22, stated that VMRDA had been permitted to cancel the sale deed allotting land i.e. an extent of 22 acres and 71 cents in Sy. No. 7, 165/P & 166 and another parcel of 8 acres and 59 cents in Sy. No. 67/P of Kommadi village of Visakhapatnam in favour of L&T Vision Ventures Ltd on payment of balance amount of Rs.41.64 crore with 7% simple interest from 24.10.2008.

The Metropolitan Commissioner, VMRDA had stated that he had addressed a letter dt.21.03.2019 to L&T Vision Ventures Limited for payment of balance amount of Rs.41.64 crores and its 7% simple interest Rs.30.43 crores in terms of G.O.Ms.No.108 MA, dt.07.03.2019. As per said orders, the developer had to pay the amount of Rs.88.73 crore including simple interest for the period 24.10.2008 to 31.12.2020. However, the developer had not paid any amount and no reply had been received in this regard.

According to the GO, as per the prevailing market value of lands, the value will be Rs.6 crore per acre. Hence, there will be a loss of Rs.99 crores to the government exchequer. Further, it is brought to the notice of the government that number of

petitions have been received requesting to cancel the allotment done earlier, as it was allotted at a very low price causing huge financial loss to the government duly conferring an undue benefit to the bidder i.e., L&T Vision Ventures

Limited by overruling the objections raised in the matter.

As the land value is arrived through an auction in 2008, only 10% minimum guarantee amount of the value of the land originally bidded, is paid as the minimum guaranteed amount, and as the developer is expected to sell the developed land at today's market rates, but not at the rates of 2008, the present market value of the land has to be reassessed. The government after careful examination of the matter permitted Metropolitan Commissioner, VMRDA to cancel the land allotment, the GO stated.