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Sabeer Bhatia’s 11,000 Acre IT Hub Project in Trouble

Comments Off on Sabeer Bhatia’s 11,000 Acre IT Hub Project in Trouble   |   March 17, 2009    05:15pm   |Contributed by Indian Realty News

As the credit crunch worsens for realty developers, the latest project to bite the dust is Parsvnath and Hotmail co-founder Sabeer Bhatia’s proposed 11,000 acre IT hub called the Nano City at Naraingarh in Panchkula district in Haryana. According to sources Bhatia’s partner Delhi-based real estate player Parsvnath Developers may pull out of the project, but the developer has denied any such plans. “We wish to clarify that Parsvnath Developers Limited has no intentions of pulling out of the prestigious Nano City Project,” Parsvnath Developers said in a statement.

Sources in Haryana government say Parsvnath has hinted towards pulling out of the project, which is expected to be worth Rs 50,000 crore. While Bhatia owns the majority 52 per cent in the proposed project, the real estate major holds 38 per cent and the state government as its 10 per cent partner. The blame game has already begun as Parsvnath says state government has failed to give contiguous land while government officials say they were to provide 25 per cent of the total land and that too, after the Parsvnath had acquired its share of land.

“As a matter of policy, acquisition of land has to be done by the private developers on a willing-buyer willing seller model. We are in regular touch with the developers. It’s a prestigious project for the people of Haryana. There may be minor glitches here and there, but we are confident that the project will sail through,” said Shiv Bhatia, spokesperson of Haryana Government. Ever since Parsvnath bought a stake in the project there have been concerns on the funding part as the investment coincided with a decline in real estate values and a sector wide slowdown. Parsvnath’s only consolation here could be that it has invested only about Rs 100 crore in the project so far and it can still jump out of it.

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