NBCC To Develop Rs 8,500 Crore Mixed-Use Project On 21-Acre South Delhi Land After Settlement

State-owned NBCC on Friday said it will get a 21.23-acre land parcel in south Delhi as its share following settlement of a dispute with the Delhi government and the company will develop on this site a mixed-use real estate project with an estimated revenue of about Rs 8,500 crore.

NBCC will have to pay Rs 220 crore to the Delhi government.

In a regulatory filing on Friday, NBCC informed that 'a settlement has been reached between NBCC Ltd and the Government, NCT of Delhi (GNTCD) to resolve the long pending litigation regarding a land admeasuring 42.46 acres in Sultanpur/Ghitorni village in Delhi.'

As per the settlement, the total 42.46-acre Ghitorni land will be equally divided between NBCC and the state government.

Accordingly, NBCC will get 21.23-acre land. The state government will execute a perpetual lease deed in favour of NBCC for this land.

"The approved terms will grant development rights to NBCC in accordance with the Master Plan for Delhi (MPD-2021), permitting sub-leasing and mixed-use development under city zoning," the company said.

Separately, NBCC said in a statement that the company will develop a 21.23-acre prime land parcel in Ghitorni, south Delhi, after resolving years of litigation and administrative dispute over the property.

NBCC will have to pay a one-time land premium of Rs 135 crore and a lump-sum interest of Rs 15 crore (totalling Rs 150 crore) to the land building department under the state government.

That apart, the company will pay arrears of ground rent at 2.5% per annum from 2006 on the said premium.

The total amount to be paid by NBCC amounts to Rs 220 crore.

The settlement will be submitted before the High Court of Delhi. NBCC would file an application for withdrawal of WPC, the statement said.

"The development by NBCC in its allotted settlement area is expected to result in Built up area of around 4.45 lakh sq metre, which in turn is expected to generate a revenue in the range of Rs 8,500 crore," NBCC said.

The company is engaged in project management consultancy and real estate businesses.