As part of this arrangement, DLF has exited the Tulsiwadi urban renewal project next to the Willingdon Club in Tardeo, bringing an end to years of litigation and clearing the way for the project to move forward.
DLF has formally withdrawn all its litigations against Hubtown, Twenty-Five Downtown Realty (formerly Joyous Housing), PNB Housing Finance and others under these consent terms agreed upon last week.
In return, Twenty-Five Downtown, an entity affiliated with Hubtown, will pay DLF Rs 800 crore over the next two years. As part of the agreement, Rs 100 crore has already been paid as the first tranche.
Hubtown has mortgaged 150,000 sq ft of space in the proposed project in favour of DLF as security for the balance payment of Rs 700 crore, documents registered last week show. ET has reviewed the indenture of mortgage.
DLF had announced the arrangement in an earlier filing, but did not specify the total settlement amount.DLF and Shapoorji Pallonji Group’s Chinsha Property held 37.5% stake each in the SPV formed to redevelop the Tulsiwadi slum cluster, alongside Hubtown’s 25%. The project ran into financial and legal issues after a Rs 900-crore loan from PNB Housing Finance turned non-performing in 2021.After the default, PNB Housing Finance invoked pledged shares of Chinsha and DLF, selling them to recover its exposure. The loan was taken over by Omkara Asset Reconstruction Company. The share transfer and pledge invocation triggered allegations from original shareholders, especially DLF, over wrongful ouster and shareholder rights’ violations.
While Chinsha had accepted its exit and withdrawn all allegations, DLF pursued legal challenges through arbitration, NCLT proceedings and RERA complaints. The current settlement brings all these disputes to a close.
A DLF spokesperson confirmed the settlement and the related mortgage of 1.5 lakh sq ft in the project, while ET’s email query to Hubtown remained unanswered.
The Tulsiwadi redevelopment, located in a prime pocket of Tardeo and adjoining 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 support project development. With this legal resolution in place, Hubtown can now focus on executing the project without the uncertainty of shareholder litigation.
Industry observers believe this settlement signals a broader trend in India’s real estate sector, where structured financial settlements backed by real estate assets are increasingly being favoured over prolonged legal battles.
