Hubtown has mortgaged space in the project to secure the remaining payment, paving the way for project execution. For one of south Mumbai’s most high-profile redevelopment projects, spread over 17 acres and valued at over Rs 10,000 crore, the consent terms of the resolution include Rs 800 crore payment to DLF clearing the way for the project to move forward.
DLF has formally withdrawn all its litigations against Hubtown, TwentyFive Downtown Realty (formerly Joyous Housing), PNB Housing Finance and others under these consent terms agreed upon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.
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 nonperforming in 2021.
After the default, PNB Housing Finance invoked pledged shares of Chinsha and DLF, selling them to recover its exposure. The loan was taken over by Omkara Asset Reconstruction Company. The share transfer and pledge invocation triggered allegations from original shareholders, especially DLF, over wrongful ouster and shareholder rights’ violations.
The current settlement brings all these disputes to a close.
The Tulsiwadi redevelopment, located in a prime pocket of Tardeo and adjoining the Willingdon Golf Course, is among the largest urban renewal projects in south Mumbai. The SPV has already registered three residential towers with RERA and secured funding from Oaktree Capital to support project development.
