K Raheja, Mafatlal Group company call off 2016 land deal
Publish on : 2019-04-23 12:25:27
Realty developer K Raheja Corp and Mafatlal Group company Standard Industries have called off the
deal for 62.25 acre of land parcel in Navi Mumbai ’s Ghansoli locality. In September 2016, K Raheja
Corp had entered into a Memorandum of Understanding (MoU) to acquire this plot for Rs 355 crore.
As part of the agreement, Standard Industries, or the erstwhile Standard Mills, with interests in the
textile business, was expected to transfer and assign its leasehold rights for the property at Trans-
Thane Creek Industrial Area in the villages of Ghansoli and Savali.
The transfer, assignment and consideration was subject to fulfillment of various conditions, including
approval from Maharashtra Industrial Development Corporation. However, both the parties have
decided to terminate the agreement as some conditions have not been met yet.
It could not be ascertained as to which conditions have not been fulfilled and has triggered the
termination of this agreement.
The plot was expected to be acquired by Feat Properties, a subsidiary of K Raheja Corp. According to
property consultants, the land parcel has a total development potential of about 8 million sq ft.
ET’s separate email queries to both K Raheja Corp and Standard Industries remained unanswered till
the time of going to press. Standard Industries has already made a regulatory filing with regard to
both the parties’ mutual decision to cancel the transaction.
Standard Industries, as part of its strategy to liquidate non-operating assets, has been disposing
some of its immovable properties over the past few years.
It may be recalled that Standard Industries had transferred and assigned its leasehold rights for a 30-
acre plot, adjoining the said land parcel, to LOMA IT Park Developers, which is a 49% owned
associate of Singapore-based CapitaLand, in April 2008.
Source :- Economic Times