Construction of high-rise apartment in Bhubaneswar suspended over lease dispute

It cost dearly for Paltronics Allied Industries Private Limited to construct an apartment on a piece of land in the Patia area it obtained on lease to set up a plant as the Bhubaneswar Municipal Corporation (BMC) has ordered the company to stop construction work. 

As per sources, the land in question, measuring approximately five acres, was originally leased to Tejpal Singh, proprietor of Paltronics Allied Industries Private Limited, in 1979 for industrial usage. However, after getting a plan approval on January 2 this year, a multi-story residential building was constructed on the said land. 

The General Administration (GA) department informed the BMC that the lease agreement, signed in 1979, explicitly designated the land for industrial purposes, was violated. It was further observed that the classification (kisam) of the land was also altered unlawfully.
Besides the BMC, instructions have also been issued to Bhubaneswar tehsildar to delete the ‘Stitiban kisam’ of the said land in its record of right. 

The Revenue Department has also directed the Khordha District Collector to take possession of the property and all associated assets.
Asking to stop the construction work, the BMC Commissioner has written a letter to Aman Agarwal, who is the director of Paltronics Allied Industries Private Limited.

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On the other hand, Industries Minister Sampad Chandra Swain said such violations would never be tolerated. 

“As per my knowledge, they had obtained the land to set up a plant to manufacture electronics products. They have somehow converted it into ‘Stitiban’. This government won’t let those who have committed frauds to go scot-free,” said Swain. 

As per records, Tejpal Singh of Paltronics Allied Industries Private Limited acquired the land on a lease spanning 99 years with the intention of establishing an industrial unit in 1979. While there was no sign of setting up a plant, the status of the land was later altered to ‘Stitiban’ in 2022 the ‘kisam’ was changed to ‘gharabari’. 

Later, by obtaining approval from the BMC, the construction of seven blocks of the Urban Majestic Apartments project, which was subsequently registered with RERA, was started. To date, 42 prospective buyers have also booked flats in the apartment. 

Real estate activists are now wishing to know how the BMC approved the plan. 

“The BMC has cancelled the plan. But the question arising is why they approved it. And the project was also registered with RERA. Now another question arising is whether a common man should trust RERA’s certificate or not,” said Bimalendu Pradhan, a Real Estate activist. 

In this regard, though the Urban Majestic authorities chose to abstain from giving detailed explanations, merely stating that the land has been ‘Stitiban’ since 1979.