However, the project is a win-win proposition for the CHB whose coffers will swell by nearly Rs 1500 crore from the 30 per cent it will make from sales of all units here, not to mention the Rs 821 crore of bid money. But the stakes are high for Parsvnath, which has to complete the construction of the project within the stipulated two years and sell it in four years, starting September 2007.

If it fails, the land will be transferred to the CHB and the money forfeited, according to the agreement between the two. Parsvnath is trying to sell the project to the rich Punjabi diaspora abroad through aggressive marketing in the US and UK.

Incidentally, Parsvnath is still waiting for the permission to begin construction, a nod that got delayed due to procedural complications. However, the permission is likely to come through this month, and construction will start from March, CHB officials said.

The housing board has so far received Rs 350 crore of the total upfront bid money of Rs 821 crore in the form of quarterly instalments and Rs 17 crore from sale of dwelling units in the project till the end of January.

Most believe the steep prices of apartments and villas is responsible for the poor show. A one-room apartment costs over Rs 52 lakh, two to five bedroom ones are priced between Rs 1 crore and Rs 3.5 crore, while villas are all above Rs 6 crore. CHB officials said Parsvnath was given a free hand to decide the prices. If the builder is unable to sell, it will scale down prices, officials added. However, this rationale has not worked in Pride Asia as the prices were recently hiked from Rs 6,950 per sq ft last September to Rs 7,150 per sq feet in scheme 2 launched in December last year. Besides, the 30 per cent that goes to the CHB kitty is also a part of the apartment value.