Parsvnath Receives Rs 1,200 Cr From Rail Land Development Authority
New Delhi: Delhi-based realty player Parsvnath Ltd has received Rs 1,200 crore from Rail Land Development Authority (RLDA) after a long legal battle between the two. The money will be utilised by Parsvnath to reduce its debt, company’s Chairman Pradeep Jain told RealtynInfra.com.
The payment by RLDA relates to a project in Delhi NCR which got in to a dispute. The matter reached Supreme Court and the apex court last month dismissed the appeal by RLDA challenging a Delhi High Court order directing it to pay Rs 1,034 crore to Parsvnath Ltd.
"We have just received Rs 1,200 crore from RLDA. The money is being utilised to repay debt of IL&FS and also for redemption of non-convertible debentures and optionally convertible debentures)," Jain said.
Parsvnath Ltd had purchased about 37 acre land parcel at Sarai Rohilla-Kishanganj locality in 2010 from RLDA for around Rs 1,650 crore.
The realty firm then inked a joint venture with Red Fort Capital in 2011 to execute a project on this piece of land comprising commercial areas, luxury housing, railway housing, hospital, school, railway service building and other related structures. The JV company was named Parsvnath Rail Land Project Pvt Ltd (PRLPPL). Then in 2013, a development agreement was signed RLDA and PRLPPL.
Parsvnath Ltd had paid Rs 1,150 crore against the purchase of this piece of land but had to terminate the agreement with RLDA in 2016 because of title dispute.
PRLPPL then initiated arbitration process to settle the matter.