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Thursday’s Supreme Court judgment, which set aside a Bombay High Court (HC) verdict on ‘private forest land’, is expected to help companies such as Godrej Group, Oberoi Realty and Runwal Group to launch realty projects here. This is likely to provide relief to 25-30 stuck real estate projects.
Godrej & Boyce, holding company of Godrej Group, had moved the apex court against the HC order, which upheld the state government’s order that 133 acres of Godrej’s land in Vikhroli was forest land, in March 2008.
There were 20 other appellants, including Oberoi Realty and Runwal Group, who were parties to the case.
“Of 133 acres, a small part is developed and the rest is yet to be developed. Some properties can be redeveloped. We will develop all of that in phases,” said Adi Godrej, chairman of Godrej Group.
According to realty consultants, the land will get a floor space index (FSI) of 1.5 to 2.5, depending on the height restrictions and applicability of coastal regulation zone rules.
Estimates suggest the plot can have a total developable area of 14.4 million sq ft and the apartments in the area can have a sale price of around Rs 28,000 per sq ft.
Godrej said for all of Godrej & Boyce realty projects, Godrej Properties will be the development manager, which will get 10 per cent of revenue as fee.
Godrej Properties has already launched properties under ‘Godrej Platinum’ on the land owned by Godrej & Boyce. Godrej Group is estimated to have 4,000 acres in Vikhroli.
“Godrej Properties is a beneficiary of the judgment but benefits will accrue over a period of time,” said Adhidev Chattopadhyay, an analyst with HDFC Securities.
The SC order will also help Oberoi Realty’s Rs 4,000-crore residential project in Mulund, stuck due to the forest-land issue, said Chattopadhyay in a report released on Friday.
The project is spread across two adjacent land parcels of 19 acres and has a saleable area of 3.2 million sq ft, the report said.
Oberoi realty management could not be contacted for comments.
“It is a major relief after eight years.... we put in so much money and customers invested their funds (in the projects),” said Sandeep Runwal, director at Runwal Group, which had launched its residential project Runwal Infinity at Mulund. Runwal’s project site was also a “private forest land”.
“But we need to rework the project, as a lot of rules and regulations have changed in between,” Runwal said.
Sanjay Dutt, managing director of Cushman & Wakefield, said, “The projects, which fall in the permitted zone, will benefit and book sales as their projects will be most sought after because they will overlook lush greenery,” he said.
