HYDERABAD: Claiming victory, the state government has said that Dubai-based Emaar Properties PSJC has agreed to restore the 26 per cent share in the Emaar Hills Township to AP Industrial Infrastructure Corporation (APIIC) as per the agreement reached between the two entities.
The company, which maintained that it neither deviated from the agreement nor diluted the spirit of the memorandum of understanding (MoU) signed with APIIC, told the state two days ago that it was ready to forget the past “strictly without prejudice.”
According to highly placed sources, APIIC is expected to announce its approval of the offer made by Emaar PSJC at its rescheduled board meeting on February 15.
As per the offer, APIIC will get saleable land equivalent to 26 per cent of its holding in Emaar Hills Township Project (EHTP). According to sources, the cost of land at Manikonda village where the township came up was Rs 29 lakh an acre in 2003, when the agreement was signed. “The cost per acre now is Rs 20 crore. The sale of 26 per cent stake of the total 258.38 acres that was transferred to the private entity should fetch the state nearly Rs 2,000 crore,” said an official.
According to sources, Emaar Properties informed its willingness for a deal to the chief minister’s office (CMO) through a letter sent on February 3 this year.
“To put all related matters to rest and as proof of our sincerity to protect the interests of APIIC’s 26 per cent equity and profit share, we are willing to offer proportionate share of saleable land to ensure the same with a suitable mechanism acceptable to both Emaar and APIIC,” the letter said.
Requesting APIIC to join it for discussions to take this proposal to its logical conclusion, the Emaar letter said: “We are interested more in the restoration of our share as per the MoU signed 2003. If there is any irregularity in the sale of flats or villas in the business done by the Emaar, there are other agencies to look into it.” The state government has considered the proposal and is inclined to go with it. “In all likelihood, the proposal will be okayed by the APIIC at its board meeting on February 15,” said the sources.
The Emaar truce was the result of a strict warning purportedly issued by the state that it would be forced to take legal action unless the share of APIIC was not restored forthwith.