Property developer VTP Realty has acquired a 6.7-acre land parcel in Thergaon locality of Pune for over Rs 260 crore through its subsidiary Rising Wellworth Enterprises LLP. The transaction is an extension of a development agreement inked between both the entities earlier.
The company had entered into a development pact for the said land parcel with the landowner in August 2017. As part of this agreement, the company was expected to develop a realty project on this land parcel and the landowner would retain a certain part of commercial property in this project as consideration.
The developer, Rising Wellworth Enterprises, then obtained the required approvals and implemented a project comprising residential and commercial areas and accordingly commenced the construction of residential property.
The company was expected to complete the construction of commercial property and allot the commercial area to the owner as agreed consideration and obtain the completion certificate for the same by March 2021, showed the documents accessed through CRE Matrix.
However, the construction of the commercial portion of the project had not commenced till then and the developer was not able to allot the agreed built-up area of commercial units as and by way of consideration.
The developer then entered a new pact in September 2021 with the landowner, requesting adequate time for completion of the commercial part and offered to give additional refundable security deposit over and above the earliest security deposit as mutually agreed under the earlier agreements.
However, the said project was not completed in the extended time period as agreed and the owner then decided to execute the sale deed and take monetary consideration in lieu of the agreed consideration of constructed commercial area.
The land owner has decided to execute the sale deed and accept monetary consideration in lieu of the agreed consideration of constructed commercial area.
The buyer has paid stamp duty worth Rs 18.20 crore for the registration of the deal that took place on March 30. The developer will be paying the entire consideration in instalments and has paid Rs 9.11 crore as a token of confirmation of the deal.
The buyer has agreed to pay the balance consideration by September end. Both the parties have mutually decided that in exceptional circumstances, minimum Rs 220 crore is required to be paid by September end and the balance Rs 40 crore can be paid by December end.