The Chennai Metropolitan Development Authority (CMDA) has given a green light for the construction of residential houses on what was previously classified as industrial land.
In the heart of Guindy Industrial Estate, Hindustan Teleprinters Limited (HTL) had ownership of 10 acres of land that had long been challenging to sell, primarily due to its designation as industrial. However, with CMDA's recent endorsement for housing development on this parcel, the owners now have renewed hope in attracting potential buyers.
This land had been effectively dormant for five years, as HTL struggled to find interest in the plots. Reaching out for assistance, the owners approached CMDA, ultimately resulting in the allowance for residential construction on their property.
Given the rising demand for residential properties in the vicinity, it is anticipated that numerous developers will express interest in the expansive 10-acre plot. The Guindy area, which has become less favorable for IT parks or commercial development, is witnessing a downturn in industrial activities, making residential projects more desirable.
In response to HTL's appeal, senior officials from CMDA conducted an inspection of the land, carefully evaluating both the potential project and the characteristics of the area. This thorough analysis led the civic body to break from regular policy and permit housing construction on the site.
Typically, CMDA adheres to strict regulations that disallow the conversion of industrial plots to residential use; however, this particular situation warranted an exception. Historically, the government granted HTL permission in the 1960s to develop residential housing for staff on a portion of this land, which notably informed the CMDA's recent decision.
This property has attracted attention, although not all of it has been positive. RMZ Corporation, based in Bangalore, previously sought to acquire the land for Rs.297 Cr but faced opposition from the state government, leading to failed negotiations. Subsequently, in 2009, the State Bank of India (SBI) seized possession of the land and is now exploring strategies for asset liquidation.
A local builder recently suggested that the land could command a sale price exceeding Rs.600 Cr. Meanwhile, CMDA has increased scrutiny on residential construction across other industrial areas, particularly along the Old Mahabalipuram Corridor.