Joint Venture Real Estate Projects Under WBHD Radar

West Bengal housing department will now review the formation of joint venture real estate promoting companies. Specifically the brokerage and development companies of giant commercial properties like- shopping malls, hotels in New Town and Rajarhat and some other recent developed Property in Kolkata north. Housing minister and Mayor of Kolkata Mr. Sovan Chatterjee said, ‘’The alleged violations were being looked into and action would be initiated against firms that had violated the JV norms to go in for commercial development in the satellite township during the Left Front regime.’’

According to the government statistics there are seven big-shot real estate companies which had tied up with the state government complied by the JV norms. Meanwhile the government has summoned a few of those real estate firms in charge of their contribution in transgression of JV agreement with the state government. Rest of the JV partner real estate firms is also being kept account. Speaking about the JV agreement the housing minister also stated,’’ These JV firms have developed malls and hotels on the land earmarked for housing projects for the masses.’’
Chatterjee also put light on the fact that development and brokerage companies which singed JV with the state government for promoting lower income group and middle income group housing shifted into endorsing commercial development thereafter without notifying the state government and violating the JV agreement. In the JV firms the private companies had 50% stake functioned with the land equity offered by the state government. There after LIG apartments are sold under the cost price and MIG flats just at cost price and HIG condos at a quality range.
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After TMC government came into the ruling position in 2011 chief minister has declared that JV firms would be under investigation for alleged violations and stopped allotted lands to such real estate companies. As an aftershock these companies has stopped their duties. It’s not like that JV firms don’t do business, just that there has been no activity regarding the same purpose. As per the official updates 2 major real estate firms that had close association with their earlier ruling government, as the members of the board of directors of these firms were in the family relations of the erstwhile ruling party head honchos.

Digging the past the minister said, “We will probe into the irregularities and take action against the errant firms. We don’t want to name any particular persons involved in such irregularity.” On the contrary JV companies came with the fact that the land which had been allotted to them for commercial real estate development has been used for the same as per the official records. They also mentioned that there was a provision to embark on 10% related activities. Development of malls and hotels were also scheduled as per government agreement.
As per the director of one of such firms “There has been no change in land purpose. All the projects where malls and hotels have been developed were allotted for the very purpose. The housing department had raised the issue two months ago, following which we went with documents and clarified the matter.”

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