Indiabulls Real Estate arm gets Rs 701 cr refund from DDA

Indiabulls Real Estate today said that its subsidiary firm has received Rs 701 crore refund from the Delhi Development Authority (DDA) following a judgement from the Supreme Court of India.
The company has returned the land, located in South Delhi, to DDA, which was alloted to it for development of housing project. The land parcel was located at Village Tehkhand, Maa Anand Mai Marg in the national capital.
The project could not take off in absence of environmental clearance.
"...Pursuant to the judgement passed by the Supreme Court of India a refund of about Rs 701 crore, net of TDS, (being the auction price along with interest) has been received from the DDA by Kenneth Builders & Developers, a 100 per cent subsidiary of Indiabulls Infrastructure Pvt Ltd," Indiabulls Real Estate said in a regulatory filing.

Indiabulls Infrastructure is a joint venture company of Indiabulls Real Estate and FIM Ltd, a company managed by leading US private equity fund Farallon Capital Management LLC and its affiliates.
In the JV, FIM was holding about 74 per cent equity and IBREL was holding about 26 per cent equity.

"Further, in compliance with the directions of the Supreme Court of India possession of the Tehkhan Land has been handed over to DDA," the company said.
Indiabulls Real Estate also informed that the company has "acquired FIM's entire stake of about 74 per cent in IIPL, for a total consideration of about Rs 382 crore and with this IIPL has become 100 per cent owned by the company."

In 2006, Kenneth Builders and Developers had bagged 35.8 acre land through auction to develop a residential project. The company had paid nearly Rs 450 crore for the land.