Prestige White Meadows Land Recovered by Govt.
Prestige White Meadows project site of 3.23 acres have been recovered by the Karnataka Government. The recovered land is estimated to be worth 1000 crores.
Monetarily, this is quantified as the largest land reclamation exercise undertaken by the district administration in recent times and the move puts potential flat-buyers, mostly those from the tech-community, in jeopardy. The reclaimed property pertains to survey number 42 at Patandur Agrahara village in Bidarahalli hobli in Bengaluru East taluk.
According to the district administration, the 3.23-acre plot was initially allotted to Joy Icecream Private Limited by the Karnataka Industrial Areas Development Board (KIADB) for industrial purpose. However, the same land was subsequently sold to Prestige Private Limited (real estate company) in violation of rules pertaining to allotment. It was in this backdrop that the Bengaluru Urban district deputy commissioner V Shankar on May 23 ordered reclamation of the land, a government release stated.
Within hours after the administration announced taking back the 3.23-acre plot on which the apartment complexes were under construction, Prestige Group swung into damage-control mode and tried to assure the 200-odd investors that nothing would go wrong and the issue would be sorted out shortly.
Prestige Group spokesperson Nayeem Noor said the company had not done anything wrong. "Judiciary is still alive and we will convince them," he said. Assistant commissioner (south) L C Nagaraj said: "KIADB had allotted the land to Joy Icecream and according to the rules they should have established an industry but they sold it to Prestige Group. As the purpose was not fulfilled, the land automatically reverts to the government. If at all KIADB has executed an absolute sale deed to Joy Icecream, it is totally wrong. It is a B Kharab land and absolute sale deed cannot be executed. The procedure followed by KIADB itself is wrong."
Noor said: "The urban deputy commissioner claimed they have taken custody of the land which belongs to the government. Actually, the land was allotted by the deputy commissioner urban to KIADB and in return KIADB allotted it to Joy Ice cream.
The company was not doing well and they approached the government seeking absolute ownership. The petition was made before the then minister late MP Prakash mentioning that the company has become sick and the said allotted land can be sold at 50 per cent less price than market guidelines. The government gave its nod. But while making such a sale deed, there was no condition mentioned by the KIADB. As there was no condition made by KIADB, Joy Icecream sold the land to Prestige. After following due procedures, we went to Bangalore Development Authority (BDA) and sough change of land use."
Noor said their project was spread over more than five acres of land on three different survey numbers. "Though the district administration claims they have recovered around Rs 1,000 crore worth land, the people involved in real estate know the price of the land. I should not mention the price of the land but it is sure that it is not worth Rs 1,000 crore," Noor added.
Telling flat buyers not to panic, Noor said: "They are the rightful owners and they will remain owners".
Construction of Prestige White Meadows is almost complete with final touches in progress. The legal proceedings may take some time before the residents can take possession if the case goes in favor of Prestige.
We understand the pain of investors / residents who have put in their hard earned money and now have to go through all the pain of uncertainty. We pray that the issue is sorted in favor of the residents.
The property recovery drive is quite active in North and South Bangalore. We recommend our clients to hold back on any land purchases.
Update June 8th:
The Karnataka High Court on Monday directed authorities to consider afresh the recent recovery of 3.23 acres at Pattandur Agrahara near Whitefield from Prestige Estates Projects Ltd.
Justice Ashok B Hinchigeri passed the order while disposing the petition filed by the real estate firm.
The court quashed the order of government taking over the land for the reason that authorities had not issued any notice to the firm before taking possession of the disputed land on which residential apartments and villas are being constructed. The court has asked the government to hear the representatives of the firm on June 12 and pass appropriate orders within two weeks thereafter on examining the claims of the firm.
Both the State and the firm have been told to maintain status quo with regard to the nature of the land.
Pic Source: The New Indian Express
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