Visakhapatnam development body agrees to a one-time settlement

The Visakhapatnam Metropolitan Region Development Authority (VMRDA) will get nearly Rs 96 crore in a net one-time settlement with a private developer. The VMRDA had signed an agreement with the Radiant Developers Pvt Ltd (the special purpose vehicle floated to execute the project) in 2005 for the development of an integrated housing project in about 50 acres land in Rushikonda, Madhurawada in a public-private partnership model. However, the project is yet to begin amidst a lot of confusion in terms of modalities during the last 14 years. The developer had invoked the arbitration clause with a claim of about Rs 350 crore, stating that they had already spent around Rs 75 crore towards site levelling and other works, interest payments, opportunity loss, etc. The state government recently gave its permission to VMRDA to accept the one-time settlement offer based on the cabinet’s decision.