D B Realty's partnership firm gets MCGM's nod to construct 4,000 tenements

D B Realty on Friday said its partnership firm DBS Realty has received a letter of acceptance from Municipal Corporation of Greater Mumbai (MCGM) to construct 4,000 tenements.

"DBS Realty, a partnership firm in which D B Realty Ltd is a one-third partner, has received a Letter of Acceptance (LOA) from MCGM against online e-offer/online e-tender submitted by the firm," D B Realty said in a regulatory filing.

The project entails construction, completion and handing over of 4,000 tenements of carpet area 27.88 metres along with transfer of land and completed tenements to MCGM, to be constructed on land located in village Chandivali in Zone-V.

The partnership firm would receive land TDR (Transferable Development Rights) and construction TDR of 1.56 million square feet and premium per tenement at Rs 39.60 lakh, aggregating to Rs 1,584 crore, which shall be paid by MCGM in the form of a credit note.

"Construction TDR and credit note will be released by MCGM on milestones basis as per the e-tender. This is a unique project which is expected to benefit from tax exemptions under the Income Tax Act, 1961," the filing said.

D B Realty said the award of LOA for Chandivali project to its partnership firm would add substantially to the company's future earnings.

The company has also bid for construction of another 10,500 (approx) tenements in Malad for MCGM. It expects MCGM to take a decision regarding its bid soon.