Birla group firm Century Textiles and Industries bought a 10-acre land parcel worth Rs 1,100 crore from Nusli Wadia in Worli, a prime Mumbai area. This purchase resolves a long-standing dispute between the two prominent business families over the property.
The land will be developed by Birla Estates, the company’s wholly-owned real estate subsidiary. According to the company’s stock exchange filing, the land parcel adds an approximate booking value potential of Rs 14,000 crore to the company. With the deal, the company is set to have a gross 30-acre contiguous landholding in the particular area, with an overall booking value potential of approximately Rs 28,000 crore. Both parties will file consent terms with the court where the legal dispute is pending, said a source close to the development.
In a statement, Century Textiles said Worli today is seen as a hotspot for buyers not just in South Mumbai but also beyond, reaffirming the trend of consumers seeking a curated lifestyle in premium locations. “It also paves the way for a gross 30-acre contiguous landholding in this prime area, with an overall booking value potential of approximately Rs 28,000 crore. This includes Birla Niyaara, the flagship project of Birla Estates, launched a few years ago, which achieved great success and is one of the fastest-selling uber luxury projects in MMR, with cumulative sales of over Rs 5,700 crore since its launch,” the statement said.
In 2009, Nusli Wadia, chairman of the Wadia Group of companies, had filed a suit against Century Textiles over the use of land. The land was leased by Nowrosjee Wadia, the great-grandfather of Nusli Wadia, to the Birla-owned Century Textile Mills for 999 years.
As the mill shut in 2007, the Wadias stated that Century Textiles needed their approval for the land development. Century Textiles, on the other hand, had denied any breach of the lease agreement. The small causes court, in 2010, had stayed any construction on the land by the Birlas.
Later in May 2022, Nusli Wadia issued a “caution notice” to the public stating that “the total land parcel owned by Century Textiles is only 20 acres and not 30 acres as misrepresented by Century in order to promote its project as well as brand Birla Estates.”
Through the notice, Wadia had claimed that Century owned the 20 acres of freehold land, and 10 acres of leasehold land were owned by him. He warned the public against getting involved in “any agreement with Century and/or its subsidiaries, for sale, transfer, and/or assignment of any portion of the residential/commercial project (including Birla Niyaara).” In response to the notice, Birla Estates had stated that the 10-acre parcel was not a part of the company’s claim of developing 30-plus acres of its land in Worli.
Century Textiles closed 5.4 per cent up at Rs 2,482.40 a share on Tuesday.
First Published: Sep 10 2024 | 6:20 PM IST