Indiabulls unperturbed by “requests” to refrain from sale at Bharat Mills Estate

MUMBAI: Indiabulls Real Estate has denied any commitment on the contentious issue to the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) of not promoting or selling apartments at the proposed residential project on the Bharat Mill property. The validity of the Indiabulls’ purchase of the mill has been challenged by its rival, Lodha Group.
The attorneys representing Indiabulls turned down a “request” from the authority to refrain from selling till it disposes of the case. Meanwhile, both companies have declined to comment on the issue.
Lodha Group is contesting that rules for bidding for the mill property which was owned by National Textiles Corporation were not completely disclosed because of which it had lost the bid. The fact that proposed buildings could be sold even before paying up for the property was not declared to the bidders, argues Lodha group.
NTC sold the eight-acre Bharat Mill property at Worli, Mumbai, to Indiabulls in August for Rs 1,505 crore since it was the highest bidder. Lodha was the second highest with a bid that fell short of the Indiabulls’ bid by Rs 2 crore. Lodha is seeking a fresh bidding process for the estate with a level-playing field and has offered to pay Rs 1,602 crore for the property.
Indiabulls, which has already paid the first instalment of Rs 989.5 crore for the purchase of both the Poddar and Bharat Mill properties, had received bookings for over 40 apartments at the proposed residential tower on the Bharat Mill property. The apartments were offered for Rs 18,000 to Rs 23,000 per sq ft.

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