Nagpur: In a significant development, the top six co-developers in the Multi-modal International Cargo Hub and Airport at Nagpur (MIHAN)’s Special Economic Zone (SEZ) have received show cause notices for the first time. These companies acquired land in MIHAN’s SEZ over ten years ago but have not initiated any projects on the allocated land to date. According to a recent media report, the guidelines for the SEZ require developers to complete construction within three years of acquiring the land.
The MIHAN-SEZ, which encompasses a total area of 3000 acres, has 14 co-developers in total. The six co-developers who have received show cause notices hold a combined land area of 290 acres. The SEZ Development Commissioner has the authority to terminate the Lease Agreement (LOA) of these six companies if they fail to respond to the show cause notices within the specified timeframe. If such action is taken, it would result in as much as 85% of the SEZ land, approximately 2550 acres, remaining unoccupied.
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This move comes after the cancellation of LOAs for thirty small enterprises in the SEZ approximately a year ago. Once the LOA is cancelled, the lease registration is also terminated, allowing the authorities to regain possession of the land, as stated in the report.
The land in MIHAN-SEZ was leased to the companies at a rate of Rs 30 lakh per acre ten years ago. However, the current market value for the same land stands at Rs 70 lakh per acre. The report does not provide specific details regarding how much land has been reclaimed from which firms or how many companies’ Earnest Money Deposit (EMD) has been forfeited due to the failure to commence projects within the stipulated time.
The show cause notices issued to the six co-developers aim to prompt them into taking action and fulfilling their obligations under the guidelines. It remains to be seen how the companies will respond and whether they will be able to provide satisfactory explanations for the delay in commencing construction on the allocated land. The MIHAN authorities will carefully assess the responses received before deciding on any further course of action.
The six companies who received show cause notices are:
· DLF – 140 acres
· Building Research & Management Services Pvt Ltd – 47.58 acres
· Aasra Reality Ventures Pvt Ltd – 25 acres
· L&T – 50 acres
· Haas Corporation Pvt Ltd – 7.5 acres
· Ecoworld Infrastructure Pvt Ltd – 20 acres
