Maharashtra Industrial Development Corporation (MIDC) has directed Indiabulls Real Estate and its subsidiary Indiabulls Industrial Infrastructure (IIIL) to vacate the land area admeasuring 512.068 hectors (approximately 2,500 acres) in processing zone of Special Economic Zone (SEZ) at Sinnar, Nashik district, Maharashtra, within one month of receipt of order.
The company believes this order to be unlawful and is evaluating legal options to defend itself/seek redressal against the said unlawful order, including filing of an appeal before appropriate authorities or court(s), and shall take all desirable actions in the matter
IIIL was in the process of planning and conducting further development on the land at SEZ and submitted a preliminary proposal of revival plan, on without prejudice basis, with MIDC, and was expecting a favorable order of such hearing..,” the company said in the regulatory filing.
The company had in August 2007 entered into a share purchase agreement with MIDC which allowed IIIL to enter into lease deeds with MIDC on approximately 2,500 acres of land. The land was to be developed as industrial plots within the SEZ framework. IIIL has paid a premium of Rs. 67.7 crores to MIDC for the land.
Development on the land had been carried out with respect to a 1350 MW power plant, along with basic infrastructure, a 38 km SEZ boundary wall, 8MLD freshwater pipeline, customs office inside SEZ, solar streetlights, telecom and broadband connectivity. Further, to rehabilitate the Project Affected Persons (PAPs) the company has paid the plot fee towards the PAPs, along with basic infrastructure.
While IIIL was in the process of planning and conducting further development on the Land, MIDC had issued a termination notice purporting to terminate the Lease Deed on the basis of an alleged lapse by the company with respect to completing development and rehabilitating PAPs within the stipulated timelines.