Ridge project stalled for 10 years, SC directs DDA to pay Rs 720-cr to builder

A slipshod decision by the DDA a decade ago to give clearance to a builder to construct 4,250 houses on the eco-sensitive Ridge area in the heart of south Delhi - the agency's first ever public-private partnership project - is set to cost its exchequer a whopping Rs 720 crore.

The Supreme Court asked the state-run authority to refund Rs 450 crore to Kenneth Builders and Developers with an interest of six per cent from the date of deposit as the project on 14.3 hectares of land at Tehkand near Kalkaji Extension for the construction of 750 premium residential flats and 3,500 resettlement houses for people from economically weaker sections never took off.

DDA TO REFUND RS 450CR WITH 6% INTEREST

The reason is that the Delhi Development Authority did not obtain the mandatory forest and environmental clearance before floating the project. While the principal amount the DDA has to refund stands at Rs 450.01 crore, the imposition of 6% interest from the date of payment further enhanced it by Rs 270 crore, bringing the overall burden to a total of Rs 720 crore.

"We have carefully gone through the review petition and the connected papers. We find no merit in it and the same is accordingly dismissed," a bench of justices Madan B Lokur and NV Ramana ruled on October 4, 2016 while dismissing the DDA's plea to review its June 29, 2016 verdict which asked it to refund the entire amount with interest.

"Kenneth Builders did take all necessary steps to commence the construction activity on the project but due to the impasse created by the governmental agencies, it could not proceed in the development activity. Certain circumstances had intervened, making it impracticable for Kenneth Builders to commence the construction activity on the project land. We reject the contention of the DDA that the contract between the DDA and Kenneth Builders was not frustrated.", the SC had said in its earlier order.

The authority had announced the Tehkhand venture on March 20, 2006 involving auction of prime residential land and said the decision was taken to meet the new challenges of an ever-evolving capital city and its growing housing needs. Kenneth bagged the contract being the highest bidder in the auction.

DDA DID NOT TAKE GREEN NOD FOR THE RIDGE PROJECT

Problems began when the Delhi government's forest department raised objections saying project land fell in the Ridge area and no construction activity could be carried out without consent of the Ridge Management Board and permission of the Supreme Court.

The DDA insisted that the land was "residential" and the project could be undertaken. Following the impasse, Kenneth approached the top court, seeking a total refund of the deposited amount.

Noting that obtaining the environmental clearance was the responsibility of the DDA, the SC had said, "The failure of the DDA to provide a clear passage due to an intervening circumstance beyond its contemplation went to the foundation of implementation of the contract with Kenneth Builders and that is what frustrated its implementation".

Earlier, the Delhi HC rejected the builder's refund plea saying it should first make an attempt to get construction nod from Delhi Pollution Control Committee.

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