CIDCO revokes the Navi Mumbai plot allotment to Godrej Properties

In a twist of fate, the CIDCO has revoked the allocation of two adjacent plots in the Sanpada area of Navi Mumbai to Godrej Properties, setting the stage for a legal battle. Godrej clarified that there is no material impact of the aforesaid cancellation on the financial, operations or other activities of the Company.
In their official statement, Godrej Properties firmly expresses their conviction that this cancellation is on unstable legal grounds and apparently contradicts a crucial order that the High Court of Judicature at Bombay issued on May 3, 2023. Based on this order, titled "Godrej Properties Ltd. vs. State of Maharashtra", Godrej lodged a writ petition with the Bombay High Court.
In March 2021, Godrej Properties had emerged as the highest bidder in the CIDCO e-auction process. They bid Rs. 166 crore for securing ownership rights to these two contiguous plots. The plots were spread over approximately 1.5 acres and are located about 1 kilometre from the coveted Palm Beach region in Sanpada, Navi Mumbai. The prime location combined with a robust social and civic infrastructure made it a very favourable investment for Godrej.
Godrej envisioned a grand total of 4 lakh square feet of versatile space, primarily designated for premium residential apartments with a diverse array of configurations. Additionally, a segment of the base was to be earmarked for high-street retail.
In a separate communication, the company disclosed that one of its subsidiaries, Godrej Redevelopers (Mumbai) Pvt. Ltd. (GRMPL), received an official directive on October 13, 2023. The directive outlined a demand for GST payments totalling Rs. 48.31 crore, coupled with accrued interest and an equivalent penalty of an identical amount. This directive was issued by the additional commissioner of the Central Goods and Services Tax and Central Excise in Navi Mumbai.
In response to this development, the company said it’d contest this directive through appropriate legal channels. They made it explicit that this legal dispute would not wield any substantial influence on the company's financial operations or its broader spectrum of activities.
These recent developments serve as a vivid testament to the intricate and occasionally contentious terrain that real estate entities navigate, with legal avenues emerging as a critical instrument in addressing and resolving such complexities.

Next (Highstreet Paramvir Developers' Khar project under scanner after MahaRERA audit)

CIDCO revokes the Navi Mumbai plot allotment to Godrej Properties

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