Mumbai-based real estate company DB Realty said that the Pimpri Chinchwad New Town Development Authority had issued an “arbitrary letter” cancelling the township project at Pune awarded to it in 2009.

DB Realty said that the authority in a communication dated June 10 informed the joint venture firm floated by the developer for the project that the bidding process for the selection of a developer stood annulled and hence the ‘Letter of Allotment' dated August 25, 2009 issued cancelled.

The authority had also refunded the upfront deposit.

The promoters of DB Realty, Mr Shahid Balwa and Mr Vinod Goenka, are in jail in connection with the CBI investigation pertaining to the grant of 2G licences in which former Telecom Minister Mr A. Raja has also been arrested.

The project in Pune was for construction of 5,000 apartments for the lower income group and was said to be eligible for a Rs 190-crore assistance under from Jawaharlal Nehru National Urban Renewal Mission.

After the arrest of Mr Balwa, the Opposition parties in the Maharashtra Legislative Assembly questioned the manner of allotment of the project to DB Realty and the Chief Minister, Mr Prithviraj Chavan, assured them that fresh bids would be invited.

In May, the Government also decided to scrap the additional floor space index of 2.5 granted to the project, as against the norms of one FSI permitted in the location.

FOR LEGAL ADVICE

DB Realty said the joint venture partners believed that the cancellation of the ‘Letter of Allotment' after 22 months from the date of issue was arbitrary and illegal and had recorded its protest against the cancellation.

Further, the company was seeking professional advice “for taking steps to challenge the annulment of award of tender” as per the legal recourse/remedy available to it.

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