Hyderabad: While the state government is trying to find a legal way out of the controversial Emaar-MGF project in Manikonda, the developer is trying to project the delay in handing over flats as the result of the dispute between TS and AP governments.
The project got stuck in in 2010 after the CBI began investigating the dilution of the APIIC stake in the project in violation of the agreement between the then AP government and Emaar.
Nearly 210 buyers who purchased luxury flats by spending up to Rs 1.80 crore each have suffered a cumulative loss of Rs 300 crore as the flats have not been handed over for eight years. Another 100 film stars, politicians and celebrities who paid for nearly 135 villa plots are also waiting.
The National Consumer Disputes Redressal forum last week ordered Emaar MGF to pay back Rs 1.93 crore with 10 per cent interest to a woman who had paid up for a flat, prompting others to move the commission.
The MoU was signed between APIIC and Emaar in November 2002 during the TD rule but the dilution of APIIC stake occurred during the Congress regime in 2007.
The project comprised an integrated township on 535 acres, including a five-star hotel, golf course, convention centre, club, villas and apartments.
Buyers started paying for flats and villa in 2008. Work was stopped following the CBI investigation and related court cases. There is no clarity about the fate of the project. The latest stand taken by the company, terming it as a dispute between AP and TS governments has come as a jolt to the buyers.
In the consumer forum, a Emaar counsel said: “This is a dispute between the state governments of AP and Telangana. Writs are pending before the High Court. Civil case is also pending. If these complaints are allowed in the NCDRC, the project developers will suffer an irreparable loss.”
TSIIC sources rubbished the claims. “This is a case of irregularities during the then Congress government. Terming this as a dispute between TS and AP is totally wrong. The APIIC has been bifurcated and TSIIC is the competent authority now to deal with this project.”
