Parsvnath Developers says arbitral tribunal upholds award for Rs 1,035 cr

Parsvnath Developers said today that an arbitral tribunal has upheld its claim of Rs 1,034 crore in a dispute with Rail Land Development Authority (RLDA) related to a project in the national capital.

RLDA has been directed to pay this amount, along with 4 per cent interest rate from July 15, 2015 till the payment date.

In February 2016, Parsvnath Developers had terminated its development agreement with RLDA due to a title dispute related to a 38-acre land stretch that the company had bought for Rs 1,651 crore.

Parsvnath Rail Land Project Pvt Ltd (PRLPPL), a special purpose vehicle (SPV) created to develop this project, had gone into the arbitration process to settle the issue.

In a regulatory filing, Parsvnath Developers informed that "in one of the two arbitral proceedings, where the company and the PRLPPL had sought an award of Rs 1,034.53 crore, has since resulted in the arbitral tribunal passing an award dated November 24 whereby the claim of Rs 1,034.53 crore made by the company and PRLPPL has been upheld..."

The payment of this amount has been directed to be made by the RLDA along with interest at 4 per cent per annum from July 15, 2015 till the date of payment, the filing said.

"We are studying the judgement and then decide our future course in consultation with legal team," Parsvnath Chairman Pradeep Jain told PTI.

The company had paid over Rs 1,150 crore against the purchase of this land parcel.

In an another arbitration matter which is currently sub judice, Parsvnath had sought damage and compensation from the RLDA for scrapping of this project.

In 2010, Parsvnath through an auction had bought this land located at Sarai Rohilla-Kishanganj here from RLDA and in May 2013, a development agreement was executed between RLDA and PRLPPL.

Parsvnath had proposed to develop luxury apartments, commercial/shopping areas, railway housing, railway service building and common facilities, hospital/school and other amenities in this project.