The Indus Valley, a Singapore-based real estate developer. has been offered new sites outside the Metropolitan area, instead of Gulshan Lake and its adjacent lands to build their multistoried service apartments, commercial and leisure complex, according to highly-placed official sources.

They said the government has terminated the agreement with the organisation under which it was allocated 200 acres of prime land in the city’s posh residential and diplomatic enclave.

The agreement was can-celled last month, the sources said, taking into consideration several aspects of the controversial deal' between the RAJUK and the Indus.

After preliminary investigations the authorities found

that the deal had been faulty' and it would have affected the environment in the area.

A three-member enquiry committee, headed by the Works Secretary, has been con -stituted by the government to look into several aspects of the contract.

They will examine the background of the deal, identify people who clinched it, allegedly staying in the shadows and its legal aspects vis-a -vis the. compensation clause.

When contacted. Works Minister Mohammad Nasim confirmed that the company has been given a letter informing them of termination of the agreement.

He told The Daily Star if the Indus wants to have land elsewhere to build their project.they will be given it.” But it would be outside the Metropolitan area."

Besides, the new agreement will have to be different from the earlier agreement as it was found to have been faulty.

The agreement the Indus finalised recently had provision for compensation if cancelled. However, the Indus is yet to claim any compensation.

However, a spokesman of the Indus Valley, when contacted last night, claimed that they had not been informed about the 'cancellation' of the contract. What the company was informed was that the government has suspended the project and a final decision would be taken after the investigation committee comes up with its report, he said.