DLF Exits Rs10,000 Cr Mumbai Project After Settlement

DLF Ltd, real estate major, has walked away from a Rs.10,000 crore slum redevelopment opportunity in Tulsiwadi in South Mumbai after resolving a decade-old dispute with Hubtown. DLF, under the settlement, will get Rs.800 crore, paving the way for Hubtown and its special purpose vehicle Twenty-Five South Realty to take up development.

DLF has already been granted Rs.100 crore, while the rest of Rs.700 crore is backed by a mortgage over about 1.5 lakh sq ft of built-up area in the project. The deal puts all legal proceedings that have been launched by DLF, such as arbitration, grievances with Maharashtra Real Estate Regulatory Authority (MahaRERA), and matters pending before National Company Law Tribunal (NCLT), to rest. 

Key Highlights:

• DLF exits Rs.10,000 crore Tulsiwadi project, receives Rs.800 crore settlement
• All legal disputes between DLF and Hubtown resolved amicably
• Hubtown to lead 17-acre South Mumbai redevelopment with Oaktree Capital backing

"All disputes have been resolved amicably. DLF agreed to drop all complaints and claims against Hubtown, Twenty-Five South Realty, PNB Housing Finance, and others," said one person in the know.

Also Read: Record Breaking Sale For DLF - Sells 1K+ Luxury Homes in Just One Week

The Tulsiwadi slum redevelopment scheme, located close to Mahalaxmi Racecourse, spans 17 acres and is among the most ambitious slum rehab schemes in Mumbai. The colony not only secures continuity for the project, which already has approval for three housing towers under RERA, but also enhances chances of completing on schedule with the investment from Oaktree Capital.

Industry players feel that the step is a trend towards increasing use of structured settlements in big-ticket real estate transactions to escape lengthy litigation. With DLF out of the picture, Hubtown can now concentrate on execution and delivery while DLF redeploys capital elsewhere.