Ranchi, April 28: A Ranchi University teacher had to cough up Rs 1,100 per square feet for a flat in Burdwan Compound in March, which he had negotiated for Rs 1,000 per sqft in November 2005. Today, its market price is Rs 1,250-1,300.

Similarly, a flat, which an executive of a PSU bought in Bariatu at Rs 800 per sqft in December 2004, till December 2005 was fetching Rs 900, and in the last two months, has skyrocketed to Rs 1,000-1,050.

Multi-storied apartment prices in the state capital are moving north, particularly for the past four months, thanks to an ?open-and-shut? order by the state government.

On December 23, 2005, urban development minister Raghubar Das and secretary R.K. Shrivastava, in a surprise inspection of the Ranchi Regional Development Authority (RRDA), issued an order to stop approving plans for multi-storied buildings ?with immediate effect?. It kick-started the price boom.

The decision was taken, the government order says, since files related to building plans had been found in disorder. However, a direction followed: ?Tha ban is to be in effect till a proper system to approve building plans is evolved and further orders issued.?

But the government forgot about it totally and till today no such ?proper? system to evaluate multi-storied building plans has been evolved.

Senior urban development officials defend the order, saying it is aimed at checking mushrooming of high-rises in the capital, while builders rubbish it arguing that it has led to artificial inflation of rates and adversely affected trade.

Repeated representations to Das and Shrivastava have failed to elicit any response, said Rajesh Mishra, president of the real estate developers association of Jharkhand.

?A full-stop on new projects is shooting up prices while confining the options for a buyer. It is snatching away employment opportunities, too,? he added.

He estimates the loss for the industry to the tune of Rs 200-300 crore due to embargo.

A prominent builder, Chandrakant Raipat, said though the prices have gone up marginally because of rise in price of steel and cement, the major impact has been caused by the government decision. ?On an average, rates have gone up by Rs 100 everywhere in the last four months.?

RRDA vice-chairperson Mahesh Prasad Sinha said that approval of over 100 building plans are pending, a majority of which at almost the stage of clearance.

Mishra said, there is immense scope for multi-storied buildings in Ranchi for at least four-five years more if one goes by the demand for apartments here.

Both Das and Shrivastava were not available for comments.