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Parsvnath Cancels 15-Yr-Old JV To Build Project In Chennai

BY Realty Plus

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Parsvnath Ltd has cancelled its joint venture agreement with Sumeru Soft Pvt Ltd and Gomathi Visweshwaran Trust to develop a 31-acre mixed-use project in Chennai and got nearly 8 acre land in a settlement with the two partners through arbitration. Parsvnath Ltd Chairman Pradeep Jain said that the project could not be developed because of the market conditions and, therefore, all the parties decided to terminate the agreement. The company has got nearly 8 acre land through an arbitration order and will monetise this land parcel by developing this project. Parsvnath said the company had entered into a joint venture agreement (JVA) in September 2006 with Sumeru Soft and Gomathi Visweshwaran Trust (two land owners) for development of multi-facility complex comprising residential apartments, service apartments, commercial, IT/ITeS parks, etc, on the punja land of an extent of 31 acres situated at OMR Road, Chennai. The development of the project could not be initiated and possession of the project land always remained with the land owners. 'As the project envisaged in the JVA was long been given up/shelved and the development of the project was not feasible, the company and GVT entered into a settlement agreement for cancellation of JVA. The company and Sumeru Soft raised certain claims against each other for the recovery of the costs incurred by them/losses caused to them under the JVA and referred their dispute to arbitrator.

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Tags : News/Views Chennai land parcel Joint Venture agreement Parsvnath Ltd. Sumeru Soft Pvt Ltd. Gomathi Visweshwaran Trust Arbitrator