GlaxoSmithKline's Mumbai land sale plan hits PIL hurdle

GlaxoSmithKline Pharmaceuticals' plan to sell its 60-acre prime land at Thane near Mumbai has hit a roadblock, reports Our Bureau.

The company's chairman DS Parekh told shareholders at its 90th annual general meeting on Friday that a public interest litigation filed by Nationalist Congress Party leader Jitendra Awhad objecting to the sale of land to developers of residential properties has affected GSK, along with 16 other firms.

Parekh also said that the present market conditions may not be best suited to sell land as Thane has seen a surge in construction activity and the company would ideally want to have a good value for its property and a clear trans action with the prospective buyers.“Finance is tight and it may not be a good time to sell,“ Parekh said.

Besides, he said, the land has two small patches that are owned by two separate companies and GSK is in discussions to resolve the issue. Last year it was reported that Piramal Realty and K Raheja Group were the front runners to bid for GSK's Thane land.Even as GSK plans to exit Thane, it is ramping up its overall production activity in India.

It has earmarked a capex of Rs.520 crore, including an outlay of Rs.381 crore, for its proposed greenfield project near Bengaluru. It is also in the process of modernising its Nashik facility, where it plans to scrap some parts of the old unit.