Guwahati, May 7: The Assam Real Estate and Infrastructure Developers Association has appealed to Dispur to take a close look at the financial aspect of the contract on the 2005 Games Village that will come up on a prime plot of land belonging to the state water resources department.

Sources said the deal, if signed in its present form, could snowball into a major embarrassment for the Tarun Gogoi government.

The price of each katha of land (70 bigha, one katha, 10 locha) for the Village in the Beltola area near National Highway 37 is pegged at Rs 71,000 under the draft deal cleared by chief minister Gogoi in March. The draft deed of sale, a copy of which is available with The Telegraph, quotes the same figure.

However, sources in the revenue department said the price quoted in the draft for the land — just 2 km from the main stadium at Sarusajai — is less than half the official rate.

President of the real estate association P.K. Sharma said, “As of now, the price per katha should be anywhere above Rs 6 lakh. If it is deferred payment, it should cross Rs 10 lakh per katha. The authorities should keep in mind that the plot is located in a prime location. Prices have shot up after the four-lane highway came up.”

He said the value should be fixed in accordance with the norms prevalent elsewhere. “The government should get a minimum of 20 per cent of the built-up area or the price that the same will fetch after the Village is ready for occupation. The state should try to maximise its returns from the plot since it is not acquiring but selling the land to a private party. We expect the deal to benefit the state exchequer,” he added.

Asom Pragati Infrastructure Limited, a consortium, is executing the project.

Going by the government rate finalised in December, the areas under Moidam and several others have been placed in the “A” category with a minimum value of Rs 2 lakh per katha. The Games Village, according to the real estate association, falls under the Moidam area.