Hyderabad, February 16: The Andhra Pradesh Industrial Infrastructure Corporation of India (APIIC), which earlier was against the proposal putforth by Emaar Properties to surrender 26 percent of saleable land, said it would consider going for an arbitration with the developer if it is in the best interests of the state.
Sources said the government was in favour of an amicable settlement with Emaar, considering some of the pending legal cases and the subsequent delay in development of the project. Talking to media after the board meeting held here on Tuesday, S Sivarama Subramanyam, principal secretary, APIIC said, a decision to accept the proposal will be considered only after seeking a legal opinion.
APIIC had slapped a termination notice on Emaar after it was found that there were deviations while executing the Emaar Hills Township Project Ltd (EHTPL). Subsequently, Emaar approached the High Court seeking a stay. They also filed a defamation suit against Subramanyam.
When asked if APIIC would initiate any action on IAS officers named in the public interest litigation filed in the High Court, he remarked that it was not the APIIC but the courts which should take action against goverment officials for their alleged involvement in the process, which led to the reduction of APIIC’s stake from 26 per cent to 6 per cent in EHTPL.
APIIC, during its board meeting, decided to allow a 30 percent discount on the total cost of land for SC/ST entreprenuers. APIIC will also impose a two percent penalty on the current market value of the land for projects which fail to commence operations within the stipulated time.
–Agencies