Shares of NBCC (India) were trading higher on Monday after the state-owned company announced a settlement of its long-pending land dispute with the Government of NCT of Delhi. The stock was trading at Rs 123.89, up 1.50%, as of 9:25 am on December 29, according to NSE data, and had gained nearly 2% during early trade.
In a regulatory filing, NBCC said a settlement has been reached to resolve litigation related to a 42.46-acre land parcel located at Sultanpur/Ghitorni village in south Delhi. As per the approved terms, the total land will be equally divided between NBCC and the Delhi government. Accordingly, NBCC will receive 21.23 acres, for which the state government will execute a perpetual lease deed in favour of the company.
The company stated that the settlement grants NBCC development rights in line with the Master Plan for Delhi (MPD-2021). The permitted use includes mixed-use development along with the provision for sub-leasing, as per applicable city zoning norms.
NBCC will be required to pay a total of Rs 220 crore to the Delhi government. This includes a one-time land premium of Rs 135 crore, a lump-sum interest of Rs 15 crore, and arrears of ground rent calculated at 2.5% per annum from 2006 on the premium amount. The settlement will be placed before the Delhi High Court, following which NBCC will file an application for withdrawal of the pending writ petition.
According to the company, the development of the 21.23-acre land parcel is expected to result in a built-up area of around 4.45 lakh square metres. The proposed mixed-use real estate project is estimated to generate revenue of approximately Rs 8,500 crore, as disclosed in the filing.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
