Lodha Developers, Indiabulls row over NTC land near climax

MUMBAI: The tussle between realty majors Lodha Developers and Indiabulls Real Estate over 8-acre land parcel of Bharat Mill at Worli in the city is heading towards a climax. However, uncertainty over the title continues to rise, as the latest order from Appellate Authority for Industrial and Financial Reconstruction has restrained Indiabulls from creating any third-party rights on the auctioned property.

The order passed on December 16 has also asked the parties, including National Textiles Corporation, to maintain status quo on the matter. Indiabulls that had emerged as the highest bidder in the land auction conducted by NTC, meanwhile, paid the final installment for the property on the same day.

On Wednesday, Indiabulls Real Estate moved the Delhi High Court against the AAIFR order and the case is listed for Thursday. AAIFR has listed the case for hearing on February 3.

Both the developers have been at loggerheads on the land parcel. Indiabulls had emerged as the highest bidder with its bid of Rs 1,505 crore in an auction in early August. Lodha Developers bid stood at Rs 1,503 crore, and was the second highest bidder for the plot.

However, Lodha moved AAIFR alleging that the auction process was not fair and it favoured Indiabulls. It also filed a writ petition before the Delhi High Court seeking stay of execution of sale deed of Bharat Mill land by NTC and setting aside the order by Board of Industrial and Financial Reconstruction confirming the sale in its favour.

The petition in the Delhi High Court, according to Indiabulls, has been dismissed. However, according to Lodha Developers the petition was withdrawn Rs According to Indiabulls, the Delhi High Court was not inclined to allow the prayers and hence the said petition was withdrawn on December 16 by Lodha.

"Only thereafter and in view of the fact that the last date for payment of the sale consideration was December 19, which was a Sunday, 18th being a Saturday and 17th being a national holiday due to Moharram, we paid the sale consideration on December 16 in compliance of the tender conditions," said a spokesperson of Indiabulls.

Accordingly, the sale deed for the Bharat Mill land was executed and registered simultaneously by NTC in our favour and the possession of the said property was also handed over to Indiabulls in compliance of the tender conditions, the spokesperson said.

"We received the payment through RTGS at around 11 AM on December 16 and for us the matter has reached finality," said an NTC official.

Abhisheck Lodha, managing director of Lodha Developers refused to comment on the matter. NTC chairman Ramachandran Pillai also declined to comment on the story.
Lodha Developers had earlier challenged Indiabulls' move to pre-sell apartments in its proposed project on the Bharat Mills land merely on the basis of a bank guarantee on their bid of Rs 1,505 crore. Indiabulls has already sold around 40 apartments at the proposed phase I of the project at Rs 18,000-23 ,000 per sq ft.