With work coming to a halt on the prestigious Harita housing project at Madhurawada, a tall order stares VUDA in its face.
Problems arose in May last with the agency executing the work demanding that the construction cost be revised for the second time. However, after the VUDA Vice-Chairman had sent out a strong signal that it was not possible, the agency resumed work.
But after a month it came to a halt again and the agency was given a termination notice in October.
“We have also invoked the bank guarantee and recovered a total amount of Rs.11.5 crore, including mobilisation advance of Rs.6.93 crore,” Vice-Chairman Kona Sasidhar told The Hindu .
Subsequently, the agency went to court challenging the termination. Besides its standing counsel, VUDA pressed into service a top corporate lawyer from Hyderabad.
VUDA wants that the construction part be de-linked from the court proceedings so that work can be started.
“While the work is scheduled for completion by May next, so far only 25 per cent has been completed,” admitted another VUDA official.
Payment schedule
Consequently, VUDA has revised its payment schedule. The fifth instalment has been rescheduled from October 31, 2011, to March 31, 2012, and the sixth from March 31, 2012, to August 30, 2012.
Phase I of Harita, comprising 710 units, has been taken up in 20 acres of land at a cost of Rs.123.2 crore.
