he Rs 5,000-crore land deal, hailed as the biggest of its kind in the country, might be in trouble. According to top officials in the Noida administration as well as the real estate industry, the Delhi-based real estate firm BPTP is finding it extremely difficult to raise funds for the land buying.
Unable to pay the first instalment on time, the company has requested the administration to grant a two-month extension for paying Rs 1,250 crore. However, this comes with a penalty clause, and the realtor will have to pay a fine to avail of this extension.
"The company had requested for an extension and we have extended the time from 30 to 90 days to pay the required amount," said a senior official in the Noida authority.
The company executives, however, denied any crisis of funds for the company. "Yes, we have been given an extension but this clause did exist in the tender itself and there's nothing unusual about it," said the spokesperson for BPTP. The smear campaign run by our realty competitors would soon loose steam when we would pay the entire amount to the Noida Authority, he spokesperson added.
Interstingly, BPTP was considered to be a small time developer till it outbid realty giants like the DLF, Ansals and Omaxe to bag the Rs 5,006-crore land deal.
But, some analysts point out that if BPTP is facing problems with the first instalment itself, then it might face more roadblocks in paying the remaining amount to the Authority.
Source:www.Howrah.org 05/May/08India's Biggest Land Deal In Trouble, BPTP Is Extremely Difficult To Raise Funds For The Land Buying
