Mumbai-based real estate developer DB Realty said on Wednesday that three of its projects in prime locations of Mahalaxmi, Marine Lines...
Mumbai-based real estate developer DB Realty said on Wednesday that three of its projects in prime locations of Mahalaxmi, Marine Lines and Bandra (West) in Mumbai, which were stuck for lack of clearances from state government departments, are expected to get approvals soon.
In a notice sent to NSE on Wednesday, the company said the Bombay High Court has directed Municipal Corporation of Greater Mumbai (MCGM) and Maharashtra Coastal Zone Management Authority (MCZMA) to issue the clearances for these projects.
The company did not say when these orders were issued by the high court.
“The company considers this as a significant event which will have substantial impact on the future earnings of the company,” DB Realty said in press releases sent to NSE.
The company’s share price also spiked on the news in the last two hours of trade, after the notice came on NSE. The price closed at an upper circuit of 20% at R69.95 per share on NSE on Wednesday.
DB’s Mahalaxmi project that is being implemented by Mumbai Turf Estate JV in which the company owns controlling stake, was held up after a notification dated December 4, 2013 from the Maharashtra government that restricted development activities within 500 metres of the Arthur Road Jail. However, the company in its filing to the exchange said that the high court had directed MCGM to process the plans submitted by the firm in accordance with the law without applying the said notification. DB said that it has submitted its plan for approval to MCGM and expects to get the approval for the project between January and March 2015.
In another project to be developed in the prime suburb of Bandra, the high court has directed the MCZMA to issue clearance to the effect that the property falls outside the CRZ (coastal regulatory zone) purview and further directed MCGM to consider the application for development of the property in accordance with law, DB Realty said.