Slump in realty prices pushing HSVP into bankruptcy

Gurugram: Though the Haryana government recently changed the name of Haryana Urban Development Authority to Haryana Shahri Vikas Pradhikaran (HSVP), any change is yet to come in the financial fortunes of the public agency.

Already under heavy debt, low property rates in Gurugram as well as the rest of the state means that HSVP is inching towards bankruptcy. It has to pay a sum of Rs 27,005 crore to landowners whose properties it acquired. Rs 10,774 crore of this amount belong only to Gurugram.

To pay these heavy dues, in 2017-18, HSVP had taken a loan of Rs 11,000 crore. The adverse impact of the debt-ridden HSVP has been felt in Dwarka expressway, where it took more than 12 years to compensate village residents whose lands were acquired for creation of new sectors.

For long, HSVP has been in charge of acquiring land from villagers for developing residential and industrial townships. The significance and profitability of the public agency is most tangible in Gurugram, where the realty sector saw an exponential rise for a long time.

Along with private developers, HSVP too acquired large tracts of land and developed various residential sectors.

One of the significant phases of the downturn was experienced when between 2006 and 2009, HSVP – then HUDA – acquired land to develop sectors, mostly in the Golf Extension road.

However, in a major blow to HSVP, the villagers went to court demanding greater compensation after realty prices in Golf Course Extension road rose.

The court gave a judgment in the villagers' favour and now HSVP is seeking this money from new homebuyers, who are now protesting as well.

This problem is further worsened by rampant corruption and lack of transparency in allocation of the plots. Most of these cases are being heard in the courts.