Confusion remains over the Indus Valley project to develop the Gulshan. Banani lake area as Rajuk officials said they were yet to cancel the contract.

Several weeks ago Minister for Housing and Public Works Mohammad Nasim told The Daily Star that the contract between the Singapore-based developer and Rajuk had been cancelled. - , •

But Rajuk officials yesterday said the contract was sus-

Chairman M Azizul Haque said

they were seriously looking into the matter. "We are scrutinising all the legal aspects of the contract and we will soon take a decision about it." he said without elaborating.

Some 220 acres of lakeside land in Gulshan area was leased out to Indus Valley for 75 years on Build-Operate-Transfer (BOD basis. Under the deal, Indus was to build a series of multistoried buildings with a host of other facilities.

After reports of serious Irregularities In the Rajuk deal, the government suspended the contract and set up an inquiry committee. After the inquiry committee submitted its report to the Works Minister. Rajuk Chairman Humayun Khadem was removed from his post and placed as Officer on Special Duty.

A Rajuk official said none other than Rajuk had the authority to cancel the contract with Indus Valley. The two signing parties were Rajuk and Indus so it is one of them who can cancel It," said a Rajuk official, adding that Rajuk had just received a formal letter from the ministry to take steps to cancel the contract.