Auda has issued notices to around 17 builders informing them that the approval it had granted to their plans for schemes in areas of Bopal that were earlier an R-1 zone, now stood cancelled.
Builders in Bopal are still reeling from the shock of learning that R-1 zones in the area had been reassigned R-2 status, when the Ahmedabad Urban Development Authority has dealt them another blow.
Auda has issued notices to around 17 builders informing them that the approval it had granted to their plans for schemes in areas of Bopal that were earlier an R-1 zone, now stood cancelled. It was these areas that were re-designated as R-2 zones.
The notice further says that no construction activity can be carried out at the construction sites in the areas till the state government takes a final decision and issues a notification.
Sources said that Auda has also warned that it will station security personnel at the construction sites.
The sources said developers have made investments worth over Rs1200 crore in the affected areas of Bopal, all of which is now at stake. They had planned to construct around 10,000 flats in the area, of which around 40% have already been booked. Nearly 4,000 families which had booked flats in Bopal are upset by Auda’s order and some 2,000 construction workers working at different sites are at risk of losing their jobs.
“The developers are at their wit’s end as they do not know what to say to customers who have already booked flats in their schemes,” said Dipak Patel, president of Bopal Ghuma Housing and Estate Developers Association.
“Most of the projects are approved by banks. Also, many customers who had taken home loans for flats in these areas have already started paying EMIs.” Dipak Patel said the Auda order will have a negative impact on Bopal’s real estate market and will also affect development in the area.
Developers will now think twice before launching schemes in Auda’s newly merged areas and customers will be reluctant to buy flats here until the TP schemes are approved by the state government, he said.
Suresh Patel, president of Gujarat Institute of Housing and Estate Developers (Gihed), said the decision taken by the state government and Auda was not good. The government has issued a preliminary notification announcing the change of zones and has invited objections from various stake holders. In such a situation, Auda should not have stopped construction there, he said.
Meanwhile, Bopal Ghuma Housing and Estate Developers Association has made a representation to Auda.
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