Troubled DB Realty’s Pune township project annulled
16 Jul 2011
After the jailing of two of DB Realty main promoters, Shahid Balwa and Vinod Goenka, in connection with the 2G spectrum scam, the country's biggest real estate firm on Friday saw the cancellation of its multi-crore township project near Pune.
The Pimpri-Chinchwad New Town Development Authority (PCNTDA), a local government body in the district, said it had annulled ''bidding for the selection of the developer''.
The authority has refunded the deposit of Rs50 crore to the Mumbai-based developer.
The project was to be executed under a joint venture christened DB Conwood Man Ajwani JV. Opposition parties in Maharashtra such as the Shiv Sena and BJP have been demanding scrapping of the project for showing ''undue favour'' to DB Realty. The project was to come up at Bhosari, 14 km from Pune.
The news comes at a time when the Rs10,000 crore Bandra redevelopment project, awarded to DB Realty and two others, is yet to take off.
DB Realty had formed a joint venture with Man Ajwani to develop the project. In August 2009, it got the letter of intent from PCNTDA. According to a television channel, the project was valued at Rs400 crore.