It was learnt here today that the proposed Rs..60 crore project had lapsed at the final stage of its execution after the trust had issued public notice to invite applications for 980 residential plots of various sizes falling in the second phase.

The informed sources said that delay in approval of rates of land under acquisition at the level of financial commissioner, Revenue, had resulted in collapse of whole project. It may take more than two years to revive the project, said S.S.Rajput, chairman of Improvement Trust. He said trust had also arranged a loan of Rs..60 crore from HUDCO.

The applications for the project were invited in the first week of November and the last date of the receipt of the same was December 8 which was extended to December 24, but the scheme lapsed on December 10 and no publication was given in the newspapers about the lapse of the scheme.

The department received 1480 applications from the prospective buyers collecting approximately 2.5 crore rupees out of which only 1050 applicants have been refunded even after one month of lapse of the scheme.

The project conceived under the Punjab Town Improvement Act in the year 1995 got the government's approval in December 1996 after which the department asked the land acquisition controller to acquire the required land for the project. In June 1998, no objection certificate was also obtained from the Finance Department, Chandigarh and LAC was asked to announce the award till December 11, 1998, the delay of which caused the failure of the project.