"CIDCO Revokes Allotment of Two Navi Mumbai Plots to Godrej Properties"

The City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO) has taken a significant step by canceling the allocation of two contiguous land parcels in Navi Mumbai to Godrej Properties. This move marks a notable development in a real estate transaction that transpired in March 2021, when Godrej Properties secured approximately 1.5 acres of land for ₹166 crore in Mumbai through an e-auction administered by CIDCO.

These two parcels of land come with a substantial development potential, boasting a combined four lakh square feet of space suitable for housing, with a minor inclusion of high-street retail. This transaction took place in the Sanpada area of Navi Mumbai.

Godrej Properties publicly disclosed this cancellation in a regulatory filing made on a Monday. According to the company, CIDCO issued an order on October 11, 2023, rescinding the allotment of the two plots in question. In response to this development, Godrej Properties has expressed its belief that the cancellation is grounded on untenable reasons and appears to conflict with a previous order dated May 3, 2023. This prior order was issued by the High Court of Judicature at Bombay in a writ petition (No. 2,475 of 2021) titled "Godrej Properties vs. State of Maharashtra."

Notably, Godrej Properties emphasized that the revocation will not have any substantial impact on the financial, operational, or other activities of the company. Nevertheless, the company is not taking this decision lightly and has taken legal action in response. Specifically, Godrej Properties has filed a writ petition challenging the cancellation order before the Hon'ble High Court of Judicature at Bombay.

The company, based on its legal assessment and the current legal framework, remains optimistic about the prospect of a favorable outcome in this ongoing dispute. Godrej Properties is a prominent real estate entity in India, with a significant presence in key urban regions such as the Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, and Bengaluru.

HBL