DLF Officially Withdraws from ₹10,000 Crore Tulsiwadi Project Following ₹800 Crore Settlement Agreement with Hubtown

A comprehensive financial settlement between real estate giants DLF and Hubtown has officially concluded their prolonged legal dispute over Mumbai's prestigious Tulsiwadi redevelopment project, marking the end of years of litigation and paving the way for the massive urban transformation initiative to progress.

Settlement Terms and Financial Agreement

Industry sources revealed that Twenty-Five Downtown Realty, a subsidiary of Hubtown formerly known as Joyous Housing, has committed to paying DLF a total of ₹800 crore over a 24-month period as part of the settlement agreement finalized last week. Reports indicate that the first installment of ₹100 crore has already been transferred to DLF.

To secure the remaining ₹700 crore payment, Hubtown has reportedly mortgaged 150,000 square feet of development space within the proposed Tulsiwadi redevelopment project in favor of DLF, according to recently registered legal documents.

Legal Resolution and Litigation Withdrawal

As part of the settlement agreement, DLF has withdrawn all ongoing litigation against multiple entities including Hubtown, Twenty-Five Downtown Realty, PNB Housing Finance, and other parties involved in the dispute. This development formally concludes years of legal contention surrounding one of Mumbai's most significant urban renewal initiatives.

Project Background and Joint Venture Structure

The Tulsiwadi redevelopment project spans 17 acres adjacent to the iconic Willingdon Club in Tardeo, South Mumbai. The project was originally structured as a joint venture between DLF and Shapoorji Pallonji Group's Chinsha Property, each holding 37.5% stakes, while Hubtown maintained a 25% shareholding.

Financial Crisis and Legal Complications

The dispute originated in 2021 when a ₹900 crore loan from PNB Housing Finance became non-performing. Industry reports suggest that PNB Housing subsequently invoked pledged shares belonging to DLF and Chinsha Property, selling them to recover their exposure. The loan was later acquired by Omkara Asset Reconstruction Company.

These actions reportedly led to allegations from DLF regarding wrongful ouster and violations of shareholder rights, triggering the prolonged legal battle that has now been resolved through this settlement.

Official Statements and Company Response

A DLF spokesperson has confirmed the settlement development, while Hubtown has not issued any official statement regarding the matter. While DLF had previously indicated its intention to exit the project, this settlement formally marks its departure from the venture and provides financial closure to the dispute.

Project Future and Market Impact

With the legal dispute now resolved, the landmark Tulsiwadi redevelopment project is positioned to advance to its next development phase, potentially unlocking one of South Mumbai's largest and most valuable real estate opportunities.

The resolution comes at a time when Mumbai's real estate market is experiencing significant activity, with various large-scale redevelopment projects gaining momentum across the city.

Disclaimer: This news article is based on publicly available information and industry reports. The details provided are for informational purposes only and should not be considered as financial or investment advice. Readers are advised to verify information independently and consult relevant professionals for specific guidance. The publication does not guarantee the accuracy, completeness, or timeliness of the information presented.