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Ahmedabad Development Authority circular puts Thol project in limbo

Schemes worth Rs5,000 crore are at stake. Auda circular asks builders to take prior approval of National Wildlife Board for any development work.

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A circular issued by the Ahmedabad Urban Development Authority (Auda) has put a question mark over the fate of projects worth Rs5,000 crore around the Thol bird sanctuary.

The Auda circular itself is the result of another circular issued earlier by the state government directing the concerned development authorities to follow the procedure mentioned in the guidelines issued by the Union ministry of environment and forests. Unfortunately, there is no clarity in either circular about the procedure that applicants for building permission are to follow.

On December 15, 2011, the state government had directed the authorities concerned to ask applicants to obtain prior approval from the standing committee of National Board of Wild Life for any non-forest activity within 10-km radius of any sanctuary or national park.

Following this, Auda issued its circular asking applicants to follow the above-mentioned procedure before permission could be granted for development work in the areas under its purview. It is this circular that has created uncertainty about the future of around 150 plotted development projects in Rancharda, Mulasana, Thol, Palodiya, Santej and other villages within 10-km radius of Thol bird sanctuary.

"The average size of a plotted project in the area is around 60,000 square yard. The price of land here is Rs5,500 to Rs6,000 per square yard. Taking these facts into consideration, it can be said that the fate of Rs5,000 crore worth of projects is at stake," said a real estate consultant in Ahmedabad.

Neela Munshi, senior town planner of Auda, said that Auda had not prepared a development plan for the new area.

Hence, there is no question of granting construction permission for these areas, Munshi said.  "However, when the development plan is ready, the applicants will be asked to furnish prior approval certificates from the standing committee of the National Board for Wildlife," said Munshi.

There is, however, no clarity about what would happen to the realty projects already launched in these areas. A majority of the plotted development schemes in these villages around Thol sanctuary were launched before these areas came under Auda's purview.

Munshi said they would seek guidance from the state government on this issue as they had received a copy of the state government's circular but not an attachment of the letter from the central government.  SK Nanda, principle secretary, state environment and forest department, said that the state government will declare an Eco-Fragile Zone around Thol Bird Sanctuary. "The circular will come into effect only after the Eco Fragile Zone is announced," he said. But Nanda did not disclose by when the announcement about the Eco Fragile Zone would be made, though he did say that it was in completion stage.

Many builders believe that the circular is nothing to be worried about. They say that all that it means is that applicants will have to get one more certificate to obtain development permission from Auda.

Some other builders, however, are of the opinion that the permission already issued by the authorities concerned is not valid anymore. Developers will first have to obtain prior approval from the standing committee of the National Board of Wild Life and then apply again for development permission.

Some experts believe that it will ultimately work in favour of developers. "Currently, there is scarcity of land in Thol area. The news that the prior approval is required will create panic among investors and they will start exiting the market. This will ultimately help developers as they will have a chance to buy back property at rates lower than the current market rate," said a consultant.

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