CIDCO Cancels Allotment Of Navi Mumbai Plots To Godrej Properties

Maharashtra's City and Industrial Development Corp. has cancelled the allotment of Navi Mumbai plots to Godrej Properties Ltd.

"We believe that the cancellation is on untenable grounds and in contravention to the order dated May 3, 2023 passed by the Hon’ble High Court of Judicature at Bombay in Writ Petition No. 2475 of 2021 titled Godrej Properties Ltd. vs State of Maharashtra (“Cancellation Order”)," it said in an exchange filing on Monday.

The company sees no material impact of the cancellation on its finances or operations, it said. The Mumbai-based property developer has also filed a writ petition before the Bombay High Court against the cancellation of the plots.

"There is no material impact of the aforesaid cancellation on the financial, operations or other activities of the Company, however, the Company has challenged the Cancellation Order by filing a Writ Petition before the Hon’ble High Court of Judicature at Bombay," the company said. "Based on the Company’s assessment and prevailing law, the company reasonably expects a favourable outcome given the current legal position."

CIDCO had allotted two plots in Sanpada in Navi Mumbai to Godrej Properties for Rs 166 crore on March 1, 2021, through the e-auctioning process, as the developer had emerged as the highest bidder for two adjacent plots.

Shares of Godrej Properties closed 0.78% higher at Rs 1,700.8 apiece on the BSE on Monday, as compared with a 0.17% fall in the benchmark Sensex. The realty stock has year-to-date gained about 38% in 2023.