Realty developers Hubtown and DLF have resolved their longstanding dispute regarding a prominent redevelopment project in south Mumbai, covering 17 acres and estimated to be worth over Rs 10,000 crore. According to sources familiar with the situation, the consent terms include a payment of Rs 800 crore to DLF.
This settlement marks the end of DLF’s involvement in the Tulsiwadi urban renewal project near the Willingdon Club in Tardeo, effectively concluding years of litigation and allowing the project to proceed.
DLF has officially withdrawn all litigations against Hubtown, Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance, and others as part of the consent agreement reached last week.
In return, Twenty-Five Downtown, associated with Hubtown, will disburse Rs 800 crore to DLF over the next two years, with an initial tranche of Rs 100 crore having already been paid.
Hubtown has secured the remaining Rs 700 crore by mortgaging 150,000 sq ft of space in the proposed project to DLF, as indicated by registered documents reviewed by RealtyDailyNews.
While DLF disclosed the arrangement in a prior filing, it did not specify the total settlement amount.
DLF and Shapoorji Pallonji Group’s Chinsha Property each held a 37.5% stake in the special purpose vehicle (SPV) responsible for redeveloping the Tulsiwadi slum cluster, alongside Hubtown’s 25% stake. Financial and legal complications arose after a Rs 900 crore loan from PNB Housing Finance became non-performing in 2021.
Following the default, PNB Housing Finance invoked pledged shares of Chinsha and DLF, selling them off to mitigate financial exposure, which was subsequently taken over by Omkara Asset Reconstruction Company. These actions led to allegations of wrongful ouster and violations of shareholder rights from original shareholders, particularly DLF.
While Chinsha has accepted its exit and dropped all claims, DLF continued to pursue legal actions through arbitration, NCLT proceedings, and RERA complaints. This newly established settlement effectively resolves all outstanding disputes.
A spokesperson for DLF confirmed the settlement and the related mortgage of 150,000 sq ft in the project, while Hubtown did not respond to RealtyDailyNews’s email inquiry.
The Tulsiwadi redevelopment project, located in a prime area of Tardeo adjacent to the Willingdon Golf Course, is among the largest urban renewal projects in south Mumbai.
The SPV has already registered three residential towers with RERA and secured funding from Oaktree Capital to facilitate project development. With this legal resolution, Hubtown can now concentrate on executing the project without the burden of shareholder litigation.
Industry experts believe this settlement symbolizes a growing trend in India’s real estate sector, where structured financial settlements supported by real estate assets are increasingly preferred over protracted legal disputes.
