Indiabulls Real Estate Arm gets Rs 71 crore refund
In compliance with a Supreme Court order, a subsidiary firm of Indiabulls Real Estate has received Rs 701 crore as refund from the Delhi Development Authority for a land allotted to it for constructing a housing project in South Delhi. However, the project didn't take off due to lack of environment clearance. In a BSE filing, Indiabulls Real Estate informed that a net refund of about Rs 701 crore, being the auction price along with interest, has been received from DDA by Kenneth Builders & Developers Pvt Ltd, a 100% subsidiary of Indiabulls Infrastructure. DDA had allotted 14.3 hectare of land in the Tehkhand area of South Delhi to Kenneth Builders and Developers in 2006 for its first public private partnership (PPP) housing project. The plan was to construct 750 luxury flats, which were to be sold by the private builder on free sale basis, and 3,500 houses for the economically weaker section, which were to be handed over to DDA for allotment. However, Delhi government's forest department objected to the plan, saying the site was part of the protected Ridge, where construction is not allowed according to a Supreme Court order. Work on the project was to begin by March 2007 and end by June 2008, failing which, Kenneth Builders and Developers moved the Delhi High Court in 2009, and got a favourable order for cancellation of the project tender and return of Rs 450 crore. However, DDA won its battle against the Delhi government the next year as the court admitted the land use of the site was residential. The court also ruled that Kenneth Builders and Developers would get the refund only in case a 'consent to establish' from the Delhi government's pollution watchdog (DPCC) was not forthcoming. DDA then moved SC against in 2011. Meanwhile, Indiabulls Real Estate has also informed BSE that the company has bought the entire 74% equity stake of its joint venture partner FIM Limited in Indiabulls Infrastructure for Rs 382 crore, making Indiabulls Infrastructure a 100% owned subsidiery of the company.
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