A seven-acre plot in Byculla Mumbai goes for Rs 750 crore. “The deal was signed almost a month ago. However, a formal announcement is awaited,” said the source. A seven-acre plot of Mafatlal Industries next to the Byculla zoo was sold for Rs 750 crore. The land was bought by Piramal Sunteck Ltd, a joint venture with Piramal Enterprises Ltd promoted by the Ajay Piramal Group.
However, a Mafatlal Industries spokesperson said, “We are in an advanced stage of negotiations with parties. However, nothing has been finalized.”
Last year, Mafatlal invited bids for the land and shortlisted three developers, Lodha, Peninsula Land and Kanakia. The price quoted was in excess of Rs 1,100 crore. However, the transaction could not proceed after the city collectorate, which owns the land, objected as the land was given on a 99-year lease to Mafatlal in 1913. A major portion of the term will expire in 2012.
Meanwhile, in 1999, Mafatlal Industries was declared sick by the Board of Industrial and Financial Reconstruction.
When the collector’s office learnt about the impending sale in September 2010, it issued a statement that the company did not have the permission to sell the land. “The land belongs to the collector and the state revenue department. They cannot sell the land,” Mumbai city collector C V Oak had said, adding that the plot, totalling 58,197 sq m or about 14.5 acres, was leased to then Sassoon Spinning and Weaving Company (current Mafatlal Industries) from 1913.
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