DLF shares falls 8.4 pct after court cancels land deal

Reuters Market Eye - DLF Ltd shares fall 8.4 percent. The Punjab and Haryana High Court on Wednesday cancelled a 350-acre plot of land that DLF had acquired from Haryana, local media reported.

"The Company is awaiting a copy of the order and can offer detailed comments only pursuant to that," DLF said in a statement.

DLF says the land was for a project that was yet to be developed.

Court ruling raises concerns about increased regulatory scrutiny on the company.

But JP Morgan says impact from actual land cancellation is "cash positive." It estimates overall cost for purchased land was 25 billion rupees ($413.56 mln) of which DLF has already paid 10 billion rupees.

 

DLF would thus get a 10-billion refund in case of eventual cancellation, JP Morgan says.

(Reporting by Himank Sharma)