Indian infrastructure development company Sahara India Pariwar on Wednesday signed a memorandum of understanding with Bangladesh government in Dhaka to invest in real estate and housing projects in the suburbs of the city.
Sahara Group chairman Subrata Roy Sahara and Rajdhani Unnyan Katripakkha chairman Nurul Huda signed the MoU in the presence of state minister for housing and public works Abdul Mannan Khan at the secretariat.
Indian media reported that Sahara India was going to invest 800 billion Indian rupee in Bangladesh and that the group already selected a 40-square-kilometre area about 50 kilometres off Dhaka city, for its real estate and housing project.
Real Estate and Housing Association of Bangladesh
said any involvement of foreign companies in Bangladesh’s real estate and housing business was bound to affect the country’s enormous domestic real estate and housing industry.
Abdul Mannan Khan welcomed foreign investment in housing and hoped that the two   parties would work together for a win-win situation with high demand for housing in the city of Dhaka due to increasing pressure of population on it.
He, however, said that how much money would be invested and in how many projects were yet to be decided.
The MoU states that Sahara India would establish a company in Bangladesh through its relevant subsidiaries, related companies or third parties nominated by Sahara India to invest in Bangladesh’s various infrastructure, housing and commercial projects.
‘I feel attached to this land as I heard so much about Bikrampur from my mother since my childhood. I want to invest here as I consider Bangladesh my own country,’ Subrata Roy said. 
He said that his parents had migrated to
India in 1947 and that this was his first visit to Bangladesh.
Subrata arrived in Dhaka on Tuesday on a three-day visit, accompanied by his wife Swapna Roy and 20 officials of his company.
Based in Lucknow, Sahara India said is engaged in developing townships and amenities across India, briefly known as infrastructure and housing projects.
Shara India said it would submit a proposal to Bangladesh government for finalizing a deal for establishing satellite towns near Dhaka city with its fast growing real estate business due to huge pressure of population. 
It said it would develop the design and plan for a new city to be named Natun Dhaka or New Dhaka to provide affordable housing for the low-income group after singing an agreement with the government.
Sahara Group said that it’s diversified business interests included infrastructure and housing, financial service, media, retail chain and consumer products, manufacturing and information technology.
Under iuts terms and conditions, the MoU would expire if no definite agreement is arrived within 36 months from May 23, 2012.
It also states that the respective parties shall restore to each other the assets and liabilities, if any, created during the process and the period of the MoU.  
Real Estate and Housing Association of Bangladesh said that the MoU, the government signed with a foreign company in the sector would affect the domestic industry.
REHAB president Nasrul Hamid Bipu, a ruling Awmi League Member of Parliament said any involvement of foreign companies in the country’s housing and real estate sector was bound to harm Bangladesh’s big
real estate and housing
industry.