Punjab and Haryana Court Ground Water Extraction order: Hit 100 Gurgaon Real Estate projects


It’s not just the future real estate projects that will take a hit in the wake of the Punjab & Haryana high court order on groundwater extraction. More than 100 under-construction projects in the Gurgaon will also be affected as developers fear that borewells being used at construction sites will be sealed. 

Groundwater for Construction Purposes ..!

The Punjab and Haryana high court had on recently ordered the Punjab & Haryana state government not to allow construction activities unless builders give a written undertaking not to draw groundwater.

The state government is required to file its reply to the court on the usage of groundwater for construction purposes on July 31, 2012 . The state developers and promoters feel there is a possibility that the court might ask the government to seal all the borewells currently being used at construction sites.

If this happens, under construction projects in newly developed sectors (from 58 to111) under the Gurgaon-Manesar Urban Complex 2025 plans may get affected.

Escalating Construction Cost..!

The HUDA ( Haryana Urban Development Authority) has not yet laid water supply lines, forcing the developers to extract groundwater using borewells. If they are sealed, construction activity could temporarily come to a halt and developers would have to source water from neighbouring towns, thus escalating the construction cost.

According to main sources,  In the town planning department, licence applications from developers like DLF, Ansal, MGF, IREO, among others, will remain pending till the next court hearing.

The state government can suffer revenue loss to the tune of Rs. 400 crore on account of licence fee and other charges such as EDC (external development charge), IDC (internal development charges), bank guarantee & conversion fee.

According to  Chandigarh town planning sources, there are about 60 pending applications, which include proposals for expansion of various existing projects.

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