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DLF's Bangalore project yet to receive civic clearance

Published on Thu, May 07, 2009 at 16:45 | Source : CNBC-TV18

Updated at Fri, May 08, 2009 at 08:52

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DLF is now under the Bruhat Bangalore Mahanagara Palike's (BBPM) scanner. The city corporation has issued a public notice saying that DLF has not obtained its approval for the Westend Heights project in Bangalore but has gone ahead and started bookings. CNBC-TV18's Vineetha Athrey reports

The Bangalore city corporation, BBMP, has issued a public notice to DLF homes this morning in the newspapers because DLF has gone ahead and opened bookings for their Westend Heights project on Bannerghatta Main Road and even started placing ads without getting the required permissions or sanction plans from BBMP.

"This construction will be termed illegal and we advise customers against investing in this property," BBMP has said and added buyers won't get occupancy certificates if they choose to make an investment in the project. DLF also has to obtain no-objection certificates (NOCs) from different departments such as the airport authority, water department, power department, pollution control board etc, which BBMP says the realty major has not submitted.

When contacted, a DLF spokesperson in Bangalore said: "We are in touch with BBMP officials and will sort out all issues very shortly."

BBMP has clarified that DLF has not even applied for these approvals, so the company cannot presume that they will get all clearances and after applying we are told that it would take about three-four months for DLF to get all required approvals.

During the Q4 results, DLF had taken a hit of close to Rs 600 crore because of few projects like this Westend Heights, the Garden City Project in Chennai and also one in Gurgaon. DLF was also trying to raise money by offering discounts to customers for this project and pumping that money into construction.

However, sources say that this ad was placed two weeks back and about 600 of the 2,000 apartment homes have been sold so far.