The special purpose vehicle (SPV) ,created to develop this project, has gone into the arbitration process to settle a title dispute related to a 38-acre land stretch that the company had bought for Rs 1,651 crore
NEW DELHI: Parsvnath Developers has terminated its development agreement with the Railways Land Development Authority (RLDA) due to a title dispute related to a 38-acre land stretch that the company had bought for Rs 1,651 crore.
Parsvnath Rail Land Project Private Ltd (PRLPPL), a special purpose vehicle (SPV) created to develop this project, has gone into the arbitration process to settle the issue. Parsvnath through an auction had bought this piece of land located at Sarai Rohilla-Kishanganj in the national capital from RLDA in 2010 for Rs 1,651 crore. The company has already paid about Rs 1,200 crore against the purchase of this land parcel, sources said. “The development agreement with the Rail Land Development Authority (RLDA) for implementation of the project at Sarai Rohilla-Kishanganj, New Delhi, through its Associate Company, Parsvnath Rail Land Project Private Ltd stands terminated due to certain disputes between RLDA and PRLPPL and the disputes arising under the development agreement are pending adjudication before tribunals,” the company said in a regulatory filing. According to sources, the dispute with RLDA is due to some issues over a land title. In May 2013, a development agreement was executed between RLDA and Parsvnath Rail Land Project, the SPV that was also incorporated to implement the project. The company had proposed to develop luxury apartments, commercial/shopping areas, railway housing, railway service building and common facilities, hospital/school and other amenities. Parsvnath had also appointed Callison LLC of USA as architect for the project in co-ordination with architect Sikka & Associates. The company had reported a consolidated net loss of Rs 8.87 crore for the quarter ended December. Delhi-based Parsvnath Developers has till date completed 57 projects, measuring 25.94 million sq ft of developed area. The company, at present, is working on 48 projects covering 68.40 million sq ft. It has a large land bank, which stands at 141.26 million sq ft. — PTI
