Piramal Realty-Famous Studio joint development pact may get called off

MUMBAI: The proposed joint development agreement between Piramal Realty and owners of Famous Studio at Mahalaxmi in south Mumbai may get called off, said persons familiar with the development.

The transaction involving development of nearly an acre was finalized in April and was scheduled to be concluded by January 15, but is moving very slow.

The developer is yet to pay the promised Rs 80-crore upfront payment, said one of the persons. Piramal had also offered nearly 40% share in the project space to the landlord as part of the deal.

Arun Roongta, the owner of Famous Studio, declined to comment for the story. A spokesperson for Piramal Realty said the company does not comment on market speculation.

The studio owners have picked up nearly 4,000 sq ft space on lease in Santacruz suburb of Mumbai and have shifted some operations there. However, currently the Mahalaxmi studio itself is also operational.

Famous Studios was set up in 1946 and its nine studios are rented out for shooting and post production facilities. It also has a preview theater, and few offices that are occupied by around 10 tenants.