Mahindra Lifespace gets Rs 322 crore demand notice from Rajasthan

NEW DELHI: Mahindra group's realty firm Mahindra Lifespace Developers has got a demand notice of Rs 321.79 crore from Jaipur Development Authority ( JDA) towards payment of lease charges for a township project.

The notice dated January 27 was issued to the company's subsidiary Mahindra World City Jaipur Ltd (MWCJL).

In a regulatory filing today the company said MWCJL has paid about Rs 4.5 crore since March 2011 towards lease charges for the township project and there are no arrears as of date.

The subsidiary would take up this matter with relevant authorities.

In a BSE filing, Mahindra Lifespace said MWCJL has received a "Demand Notice" from the JDA "regarding payment of lease/Shahri Jamabandi charges along with interest thereon for the period September 27, 2006 to March 31, 2014 on the land leased by RIICO to MWCJL in Mahindra World City, Jaipur."

"The notice is for an amount of Rs 321,79,38,890," it added.

MWCJL is a 74:26 Joint Venture between Mahindra Lifespace Developers and Rajasthan State Industrial Development & Investment Corporation Ltd (RIICO), which is a state government undertaking.

Mahindra Lifespace said MWCJL has paid, from March, 2011 to January, 2016, in various tranches, an aggregate amount of Rs 4,50,87,109 towards the lease/Shahri Jamabandi charges.

The charges has been calculated in accordance with the relevant provisions, statutes and representations on the subject. This has been further validated by a legal opinion.

"Based on the above, MWCJL is of the opinion that as of date, it is not in arrears of any amounts and will be taking up the matter with the relevant authorities," the company said.
Mahindra World City, Jaipur township is spread over 3,000 acres.

Mahindra Lifespace Developers Ltd is a real estate and infrastructure development arm of the USD 16.9-billion Mahindra Group.
The company's residential and commercial development footprint includes over 11.71 million sq ft of completed projects and over 9.36 million sq ft of ongoing and forthcoming projects.