The blast-hit Koregaon Park locality in Pune had received Maharashtra government's sanction for setting up a police station in January 2009 but unavailability of proper land prevented the project from taking off.
The area where the bombed German bakery stood is home to the Osho Ashram and Jewish Centre, 'Chhabad House', both on the terrorist radar.
However, the area came under the jurisdiction of the far-flung Bund Garden police station.
In response to persistent demands by the Koregaon Park residents for a separate police station in the vicinity, the state government had accorded sanction for setting it up in January 2009, official sources said.
The proposal envisages bifurcation of the present Bund Garden police station to facilitate a new Koregaon Park station.
After the sanction from government, Pune Police Commissioner Satyapal Singh reportedly had made a provision of 78 police personnel to man the proposed Koregaon Park station, including two police inspectors and three sub-inspectors.
However, unavailability of proper land proved a stumbling block.
After the German Bakery attack that left 12 people dead, the Commissioner said, "We pursued the proposal to set up Koregaon Park police station. But the proposal has not materialised for want of proper and sufficient piece of land. We are giving top priority to set up the station and will consider a suitable rented premises."
According to Pune Municipal Corporation officials, PMC had offered a piece of land to police department for establishing Koregaon Park police station a couple of months back but no decision has been taken so far in the matter.
A large number of foreigners inhabit the area and reside in and outside the Osho commune, and the Jewish 'Chhabad House'.US terror suspect David Headley too stayed there prior to the Mumbai massacre.