Realty developers Hubtown and DLF have settled their long-running dispute over one of south Mumbai’s most high-profile redevelopment projects, spread over 17 acres and valued at over Rs 10,000 crore, through consent terms including Rs 800 crore payment to the latter, said people with direct knowledge of the development.
As part of this arrangement, DLF has exited the Tulsiwadi urban renewal project next to the Willingdon Club in Tardeo, bringing an end to years of litigation and clearing the way for the project to move forward.
DLF has formally withdrawn all its litigations against Hubtown, Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance and others under these consent terms agreed upon last week.
In return, Twenty-Five Downtown, an entity affiliated with Hubtown, will pay DLF Rs 800 crore over the next two years. As part of the agreement, Rs 100 crore has already been paid as the first tranche.
Hubtown has mortgaged 150,000 sq ft of space in the proposed project in favour of DLF as security for the balance payment of Rs 700 crore, documents registered last week show. ET has reviewed the indenture of mortgage.
DLF had announced the arrangement in an earlier filing, but did not specify the total settlement amount.
DLF and Shapoorji Pallonji Group’s Chinsha Property held 37.5% stake each in the SPV formed to redevelop the Tulsiwadi slum cluster, alongside Hubtown’s 25%. The project ran into financial and legal issues after a Rs 900-crore loan from PNB Housing Finance turned non-performing in 2021.